Good Capital to Invest $25 Million in Indian AI Startups in 2024

Mauritius-based venture capital firm Good Capital announced on Friday its plan to invest USD 25 million, approximately Rs 200 crore, in Indian AI startups during this fiscal year. The investment will come from the USD 50 million corpus of Good Capital Fund II, which is expected to be fully utilized by 2027.

According to Arjun Malhotra, General Partner at Good Capital, the firm will deploy USD 25 million specifically in AI startups that empower intermediaries, with an objective to complete this by 2025. This significant investment signals the firm's focus on technology products addressing India-centric problems.

Good Capital's investments will concentrate on sectors such as cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech. The firm plans to back 15-20 startups across the early-stage and Series-A funding stages, emphasizing those utilizing AI and large language models (LLM) to drive innovation. Unlike the global trend towards 'disruption,' Good Capital's strategy involves supporting startups that strengthen intermediaries in the ecosystem.

Currently, 80% of Good Capital's investment pipeline is made up of companies that are leveraging AI in various industries. Malhotra stated, "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 and products with low acquisition costs and high conversion rates."

Good Capital's portfolio already includes over 25 startups, featuring notable unicorns like Meesho and LEAD, along with other emerging ventures such as Entri and Solar Square. This announcement underscores Good Capital's commitment to fostering AI innovation within the Indian startup landscape.

BS