Good Capital Closes $30 Million Fund to Back AI Startups
- Good Capital closes $30 million in its second fund to back AI focused early stage startups
- The fund will support new age, tech first companies solving real world problems
- Backers include family offices from Asia and Europe, with initial investments already underway
Early stage venture capital firm Good Capital has announced the final close of its second fund at $30 million (Rs 260 crore). The firm plans to invest the capital in AI driven startups and other technology first ventures building for India and global markets.
Launched in 2023 with a target of $35 million, the fund has received strong backing from family offices across Asia and Europe. Despite closing slightly below target, Good Capital remains focused on identifying high potential founders using AI, automation, and deep tech to solve real world challenges.
With Fund 2 already in motion, the firm has made early bets on startups like Rio (instant pharmacy delivery), Xhipment (digital freight forwarding), and Nuuk (consumer appliances).
“Fund 2.0 reflects 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. He added that the fund is geared toward founders who combine clarity, intent, and a strong understanding of user behavior.
This marks a step-up from Good Capital’s first fund in 2019, which had a target of $15 million but ended up deploying $44 million through direct investments and co-investments. That fund supported over 30 startups, including notable names like Meesho and Orange Health.
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Good Capital says it sees strong potential in vertical AI tools that simplify complex workflows and help Indian businesses modernize with automation and infrastructure tech.
With this new fund, the VC firm is positioning itself as a key player in supporting India’s next generation of tech entrepreneurs focused on AI-led innovation.
