a99 to Raise $100 Million Third Fund, Eyes Manufacturing & Infrastructure Bets

Early-stage venture capital firm a99 (formerly Artha99) is gearing up to raise its third fund with a target corpus of $100 million (₹850–885 crore). The Chennai-based firm plans to back 12–15 startups in the manufacturing and infrastructure sectors, with cheque sizes ranging from $5 million to $10 million.

The new vehicle will focus on Pre-Series A to Series B stage companies, founder and managing partner Vignesh Shankar said. a99 has already secured soft commitments worth $30 million from a mix of existing and new LPs, with a first close expected by April 2026. Unlike its predecessor, the fund will not include a greenshoe option.

Founded in 2021, a99 has carved a niche as a specialist investor in India’s industrial backbone, supporting enterprises driving the country’s manufacturing resurgence. Shankar described the firm’s mission as identifying “visionary founders building the backbone of India’s growth story—factories, supply chains, infrastructure, and industrial technologies.”

The firm’s second fund (2022), initially targeted at ₹50 crore, expanded to ₹105 crore with its greenshoe option and invested in companies such as Aditya Avartan, Intangles, Innocule, EzeRx, Lyzr.ai, and Raptee. Its first fund backed Vajro, Intents Mobi, and Sarva, delivering one notable exit when Futurice UK acquired its stake for 7X returns.

The fundraising comes at a time when India’s industrial landscape is rapidly evolving. The government’s “Make in India” program and production-linked incentives have spurred multinational manufacturers to deepen their presence. India now produces over 325 million mobile phones annually, making it the second-largest mobile manufacturer globally, with Apple and Samsung leading the charge. Reports also suggest Apple plans to ramp up iPhone 17 production across its five Indian factories.

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