New fund · AI & Deep Tech

Capital A raises first close for second fund

By Startup Enthusiast · 27 April 2026

What they do

Capital A is a Bengaluru-based firm that invests in manufacturing and deeptech startups

It raised ₹160 Cr ($16.9 Mn) as the first close of its Fund II with a target of ₹300 Cr

The fund targets 15–18 companies with an average ticket size of $2 Mn to $3 Mn

Capital A has secured ₹160 Cr ($16.9 Mn) as the first close for its Fund II.
The fund aims for a total corpus of ₹300 Cr plus a ₹100 Cr greenshoe option.
Investors include Chamaria Group, Steel House Family Office, and Anand Rathi Group.
Founder Ankit Kedia leads the operator-focused investment strategy for this new vehicle.
The firm has already completed 7 investments and advanced three others to later stages.
Target sectors include manufacturing, deeptech, climate tech, and aerospace.
The fund plans to back 15–18 companies with an average ticket size of $2 Mn to $3 Mn.
This follows a strong early-stage market where homegrown startups raised $284 Mn in Q1 2026.

India's deeptech market is estimated to reach $27–33 billion by 2030.
Early-stage funding saw a 58% year-on-year increase in the first quarter of 2026.
Capital A focuses on execution-heavy support for founders rather than just capital provision.
The firm targets industrial hardware and shop floor digitisation for small businesses.

Capital A operates from Bengaluru and focuses on early-stage technology investments.
Its current portfolio includes Manastu Space, Agrileaf, Misochain, and CraftifAI.
The firm previously invested in Chargeup, Bambrew, Jiraaf, Leumas BharatSure, and Entuple via Fund I.
Fund I had a corpus of ₹250 Cr before the current raise.
The strategy involves working closely with founders on operations and scaling challenges.
Sectors of interest span energy transition, robotics, and fintech applications.
The firm targets mid-sized tickets between $2 Mn and $3 Mn per company.

Deploy capital across 15–18 companies in targeted sectors.
Continue supporting portfolio firms like Manastu Space and Agrileaf with operational help.

Chamaria Group (investor) — Participating investor in the first close.
Steel House Family Office (investor) — Family office investing in the fund.
Anand Rathi Group (investor) — Domestic institutional platform participating in the fund.