TLDR:
- Good Capital plans to invest $25 million in AI start-ups in India by 2025.
- Investments will target sectors such as cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech.
Early-stage venture investment firm Good Capital has announced its plan to dedicate $25 million to invest in AI start-ups in India by FY25. The investments will come from Good Capital Fund II’s corpus of $50 million, expected to be utilized by 2027. The firm aims to focus on sectors like cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech, with the potential of India’s AI market projected to reach $17 billion by 2027. Good Capital plans to invest in 15-20 AI start-ups using AI and LLM models to create innovative businesses, emphasizing an investment strategy that supports start-ups empowering intermediaries rather than aiming for disruption. The firm’s portfolio currently consists of companies leveraging AI across various industries, with a keen focus on local intermediaries to provide services and products with low acquisition costs and high conversion rates.
Good Capital’s General Partner, Arjun Malhotra, highlighted the commitment to leveraging India’s small-business economy’s potential by investing in start-ups that leverage local expertise. The advancements in AI present opportunities to bridge skill gaps and streamline processes, allowing intermediaries to focus on high-touch execution while automating complex planning tasks. Good Capital’s strategic investments and partnerships have positioned it as a key player in India’s tech ecosystem, extending mentorship, networks, and resources essential for start-ups navigating their journey in the industry.
