Capital-A, a Bengaluru based operator-led venture capital firm, has completed the first close of its second fund at ₹160 crore. The fund is focused on backing early-stage startups working in manufacturing and deeptech, with sectors like aerospace, robotics, energy transition, and industrial hardware at the top of its investment thesis.
The second fund has set a base target of ₹300 crore, with an additional greenshoe option of ₹100 crore that could take the total to ₹400 crore if fully exercised. The first close at ₹160 crore signals strong early momentum and gives the firm enough capital to begin deploying into its chosen sectors right away.
Who Backed the Fund
The first close was anchored primarily by domestic investors and family offices. Notable backers include Srikar Reddy of Sonata Software, Siddharth Bafna of Lodha and Co, Sekhar Boddu who previously served as a technology director at Amazon, Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala of Enzo Developers, the family office of Vijayalakshmi Agarbathi Works, and the Anand Rathi Group.
Ankit Kedia, founder and lead investor at Capital-A, noted that the way startups approach manufacturing today looks very different from traditional industry. Rather than building large factories from the start, these companies are taking a more modular approach, relying on contract manufacturing, running pilot programs, and scaling gradually while keeping engineering and software at the core from day one. Kedia also pointed out that both founders and investors are increasingly paying attention to manufacturing and deeptech as serious growth areas in India.
Capital-A has already begun putting the new fund to work. The firm has made seven investments so far from the second fund, with three additional deals reportedly in advanced stages of closure.
With domestic capital showing clear appetite for manufacturing and deeptech bets, Capital-A’s second fund marks a meaningful step toward building a more focused investment ecosystem around India’s industrial startup space.
