An operator-led venture capital firm, Capital-A, has secured Rs 160 crore in the first close of its second fund, as it seeks to invest in early-stage startups focused on manufacturing and deep technology.
The fund is targeting a base corpus of Rs 300 crore, with an additional greenshoe option of Rs 100 crore.
The first close was backed largely by domestic investors, including Srikar Reddy of Sonata Software, Siddharth Bafna of Lodha & Co, former Amazon technology director Sekhar Boddu, Chamaria Group, Steel House Family Office, Avyay Jhunjhunwala of Enzo Developers, the family office of Vijayalakshmi Agarbathi Works, and the Anand Rathi Group.
The Bengaluru-based firm has already begun deploying capital from the new fund, completing seven investments and advancing three more. Its portfolio includes Manastu Space, Agrileaf, Misochain and CraftifAI.
With its second fund, Capital-A plans to back 15 to 18 companies, continuing an execution-focused approach that involves working closely with founders on operations and scaling.
The firm is also targeting opportunities in aerospace components, a sector where India remains reliant on imports, alongside emerging areas such as shop floor digitisation, particularly for small and medium-sized enterprises.
Industry estimates suggest that India's deeptech market could grow to around $27-33 billion by 2030, driven by increasing demand for indigenous technology, manufacturing-led innovation and scalable solutions for global markets.