Good Capital raises $30M in final close of second fund to back AI-driven startups
The firm will look to write cheques to new-age and technology-first startups with a focus on artificial intelligence-driven firms.
Early stage venture capital firm Good Capital on Wednesday said it has raised $30 million (~Rs 260 crore) in the final close of its second fund. The fund, launched in 2023, was initially aiming to raise $35 million.
The VC firm, which has backed companies like ecommerce platform Meesho and diagnostics lab chain Orange Health, has secure commitments largely from family offices across Asia and Europe.
With the close of this fund, the firm is looking to double down on its strategy to invest in new-age and technology-first startups with a focus on artificial intelligence driven companies.
Good Capital has already begun dispersing money from this fund with investments made in instant pharmacy delivery startup Rio, digital freight forwarding platform Xhipment, and consumer appliances firm Nuuk, among others.
“With Fund 2.0, we doubled down on high-conviction founders solving hard, real-world problems with clarity, intent, and deep insight into user behaviour. This phase has reinforced our belief that India’s next wave of breakout companies will emerge at the intersection of AI, infrastructure, and global ambition,” said Arjun Malhotra, General Partner at Good Capital.
Good Capital’s first fund, launched in 2019, had a target corpus of $15 million, but ended up ultimately deploying around $44 million, including LP co-investments—higher than the target corpus of its current fund. It supported 30 startups under its maiden fund.
On the firm’s strategy to make investments in AI, the firm said it has seen early success with startups building verticalised workflow-specific AI solutions as well as in using modern infrastructure and automation to enable Indian manufacturers and exporters.
Edited by Megha Reddy