TLDR:
Good Capital plans to invest $25 million in Indian AI startups from the $50 million Fund II by 2027. The focus includes cleantech, e-commerce, edtech, healthtech, SaaS, deeptech, and utilizing intermediaries for low acquisition costs.
Summary:
A Mauritius-based venture capital firm, Good Capital, has announced its plans to invest $25 million in Indian AI startups within this fiscal year. The investment will be made from their $50 million Fund II, which is expected to be fully utilized by 2027. The firm is focusing on sectors such as cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech to support startups solving India-centric problems. Good Capital aims to invest in 15-20 AI startups, particularly at early-stage and Series-A funding stages, with a strategy that emphasizes empowering intermediaries for low acquisition costs and high conversion rates rather than a disruptive approach.
Arjun Malhotra, General Partner at Good Capital, emphasized the firm’s commitment to leveraging India’s small-business economy by investing in startups that utilize local intermediaries. Currently, 80% of Good Capital’s pipeline consists of companies leveraging AI across various industries. Their portfolio includes over 25 startups, including unicorns like Meesho and LEAD. The firm’s investment strategy is centered around using AI and LLM (large language models) to create innovative businesses through partnerships with local intermediaries.
Overall, Good Capital’s initiative to invest in Indian AI startups reflects a focus on supporting technology solutions tailored to local challenges and industries, with the goal of fostering growth and innovation within the Indian startup ecosystem.
