Good Capital plans to invest $25 million in Indian AI startups this fiscal

Mauritius-based venture capital firm Good Capital on Friday said it plans to invest USD 25 million, about Rs 200 crore, in Indian AI startups this fiscal.

The investment will be made from the corpus of USD 50 million Good Capital Fund II, which is expected to be used by 2027.

"The total fund is USD 50 million which is planned to be used by 2027. Out of which Good Capital is deploying USD 25 million in AI startups empowering intermediaries and plans to deploy this by 2025,” Arjun Malhotra, General Partner at Good Capital said.

"Investing in technology products solving India-centric problems, the firm has announced plans to invest USD 25 million in AI startups by FY25. These investments will primarily target sectors such as cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech,” Good Capital said.

The firm plans to invest in 15-20 AI startups across early-stage and Series-A funding stages utilising AI and LLM (large language models) to create novel businesses through an investment strategy that backs startups empowering intermediaries, rather than the global trend of 'disruption', the statement said.

Currently, 80 per cent of Good Capital's pipeline consists of companies leveraging AI across various industries.

"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," Malhotra said.

Good Capital has a portfolio comprising over 25 startups, including unicorns such as Meesho and LEAD, as well as other promising ventures like Entri and Solar Square.