Capital-A Raises ₹160 Cr for Manufacturing Startups

Venture capital firm Capital-A has announced the successful first close of its second fund, securing Rs 160 crore.

The fund, which is dedicated to investing in manufacturing startups, aims for a total base corpus of Rs 300 crore. It also includes a greenshoe option that allows for a selective increase up to Rs 400 crore.

The fund’s initial capital has come primarily from its general partner, with additional participation from domestic family offices, high-net-worth individuals, industrialists, and corporate leaders. Notable participants include Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala, and MP Family Office.

Capital-A is reportedly in advanced discussions with several domestic institutional and quasi-sovereign investors who align with the fund’s sector focus.

The launch of the new fund occurs during a significant realignment of global supply chains, as domestic capabilities strengthen in key sectors such as advanced manufacturing, AI, robotics, defense and aerospace components, semiconductors, and hardware technologies.

Capital-A’s Fund II plans to support 15 to 18 early-stage companies across emerging sectors. The firm has already begun deploying capital and has invested in seven companies to date, including Manastu Space, Agrileaf, Misochain, and CraftifAI. Three additional investments are currently in advanced stages.

Ankit Kedia, Founder and Lead Investor at Capital-A, noted a distinct shift in the approach to manufacturing and deeptech in India by both founders and investors. He emphasized that these businesses require patience, strong execution, and significant operational involvement.

Kedia added that Capital-A’s focus is on partnering early with founders addressing real industrial challenges, leveraging his experience building and scaling manufacturing businesses at Manjushree Technopack to help build enduring companies.