Capital-A, a venture capital firm focused on manufacturing and deeptech startups, has raised INR 160 crore (US$19 million) in the first closing of its second fund.
The firm plans to invest in early-stage companies working in areas like aerospace, robotics, clean energy, and industrial hardware.
Overall, the fund aims to raise INR 300 crore (US$36 million), with a possible extension of another INR 100 crore (US$12 million).
The first round of funding was mainly supported by Indian investors. These included Srikar Reddy of Sonata Software, Siddharth Bafna of Lodha, and Sekhar Boddu, a former technology director at Amazon.
Other investors also took part, such as the Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala (founder of Enzo Developers), the family office of Vijayalakshmi Agarbathi Works, and the Anand Rathi Group.
“We are seeing a clear shift in how both founders and investors are approaching manufacturing and deeptech in India,” said Ankit Kedia, founder and lead investor at Capital-A.
“It doesn’t always mean setting up large factories upfront. Startups are starting modular, using contract manufacturing, piloting products, and then scaling, with strong engineering and software capabilities from day one,” he said.
Kedia said that startup-driven manufacturing is growing in a different way compared to traditional industries.
Capital-A has already started investing from its new fund. So far, it has made seven investments and is close to finalizing three more deals. Its portfolio includes companies like Manastu Space, Agrileaf, Misochain, and CraftifAI.
With its second fund, the firm plans to invest in 15–18 startups. It will take an active role by working closely with founders to help them run and grow their businesses.
The firm also sees strong potential in areas like aerospace parts, where India still relies heavily on imports. Along with manufacturing, it is also focusing on new areas like digitalizing factory operations, especially for small and medium businesses (MSMEs).
