Good Capital to invest $25M in Indian AI startups by 2025

Mauritius-based Good Capital, an early-stage venture investment firm, is dedicating $25 million to invest in AI startups in India by FY25.

The VC firm will invest from Good Capital Fund II's corpus of $50 million, which is expected to be used by 2027.

The firm plans to invest in 15-20 AI startups across early-stage and Series-A stages. Currently, 80% of Good Capital's pipeline consists of companies leveraging AI across various industries.

The VC aims to support startups from cleantech, ecommerce, edtech, healthtech, SaaS, and deeptech that empower intermediaries rather than disrupt industries.

"Good Capital holds the belief that recent advancements in AI present opportunities to bridge skill gaps. This enables intermediaries to focus on high-touch execution, while AI automates complex planning tasks. Essentially, AI acts as a catalyst, enhancing the capabilities of intermediaries by managing tasks beyond their core competencies. This shift allows intermediaries to concentrate more deeply on their core strengths," it said in a statement.

"At Good Capital, we are committed to leveraging the inherent potential of India's unique structure as a small-business economy. We focus on investing in startups that leverage the expertise of local intermediaries to offer services & products with low acquisition costs and high conversion rates," said Arjun Malhotra, General Partner at Good Capital.

(With inputs from PTI)