Venture capital firm a99 (formerly Artha99) has announced plans to raise its third fund with a target corpus of $100 million (approximately Rs 870 crore). The Chennai-based firm aims to back 12-15 startups in the manufacturing and infrastructure sectors, writing checks in the range of Pre-Series A to Series B stage companies. The fund has already received soft commitments of $30 million from both existing and new investors.
a99 aims to announce the first close by April 2026. A green shoe option is not included in this round. Founded in 2021 by Vignesh Shankar, a99 previously launched Fund II in 2022 with an initial corpus of Rs 50 crore, later upsized to Rs 105 crore through a greenshoe option.
Through Fund II, the VC has invested in startups such as Aditya Avartan, Intangles, Innocule, EzerX, Lyzr.ai, and Raptee. From Fund I, portfolio companies included Vajro, Intents Mobi, and Sarva. The firm has also recorded a successful exit from Futurice UK (a subsidiary of Futurice Finland).
Shankar established a99 in 2021 to support India’s burgeoning manufacturing and infrastructure sectors. “As a Pre-Series A to Series A investor, a99 identifies and supports visionary founders building the backbone of India’s growth story — factories, supply chains, infrastructure, and industrial technologies that will define the next century,” Shankar said. The launch of this third fund comes at a time when the Indian government is heavily promoting homegrown manufacturing through initiatives like “Make in India,” which has significantly boosted the country’s mobile and electronics manufacturing capabilities.
India now manufactures over 325 million to 330 million mobile phones annually, making it the world’s second-largest mobile phone manufacturer. Startups are playing a crucial role in innovation within the manufacturing and infrastructure sectors, supported by venture capital investments.
Boosting India’s startup ecosystem
For instance, AI-based manufacturing startup Frinks AI raised $5.4 million from Prime Venture Partners, and manufacturing startup CapGrid Solutions secured INR 29.16 crore in an extended Series A funding round led by Anicut Capital. The Union Budget 2025 continues to emphasize India’s manufacturing aspirations, focusing on areas such as solar PV, batteries, electrolysers, and green energy hardware. The “Make in India” initiative, launched in 2014, has attracted global manufacturing giants with extensive production-linked incentives (PLIs) and state-level incentives.
Global companies like Apple and Samsung are increasingly manufacturing their products in India, with Apple planning to ramp up production of its iPhone 17 across its five factories in the country, aiming to reduce dependence on China. Indian startups raised $5.7 billion in the first half of 2025, an increase of 8% from the $5.3 billion raised in the same period in 2024, showcasing the country’s growing prominence in the global manufacturing landscape. With this new fund, a99 aims to deepen its role in scaling India’s manufacturing and infrastructure ecosystem while maintaining a disciplined early-stage investment strategy.
The firm has identified four pillars guiding their investment strategy:
1. IP or R&D Driven: Investing in companies with unique, innovative products that can sustain long-term market presence. 2.
Shovel Strategy: Instead of high-risk investments in capital-heavy sunrise industries, A99 will focus on startups building enabling technology or ancillary businesses necessary for these industries, akin to “selling shovels during a gold rush.”
3. Digitisation of Manufacturing: Supporting companies leading the digitisation of manufacturing in India. 4.
Infrastructure and Infrastructure-Led Ancillaries: Investment in infrastructure and related businesses. This robust environment presents ample opportunities for investors, anchoring India’s position as a vital hub for manufacturing and infrastructure development.
