As India continues to emerge as a global tech and innovation powerhouse, Good Capital, an early-stage venture investment firm is contributing its part. Investing in technology products solving India-centric problems, the firm has announced plans to invest USD 25 Mn in AI startups by FY25. These investments will primarily target sectors such as Cleantech, E-commerce, Edtech, Healthtech, SaaS, and Deeptech. The announcement comes at a time when India’s AI market is projected to reach a whopping $17 billion by 2027.

The firm plans to invest in 15-20 AI startups across early-stage and Series-A funding stages utilising AI and LLM models to create novel businesses through an investment strategy that backs startups empowering intermediaries, rather than the global trend of “disruption.” Currently, 80% of Good Capital’s pipeline consists of companies leveraging AI across various industries.

Good Capital holds the belief that recent advancements in AI present opportunities to bridge skill gaps. This enables intermediaries to focus on high-touch execution, while AI automates complex planning tasks. Essentially, AI acts as a catalyst, enhancing the capabilities of intermediaries by managing tasks beyond their core competencies. This shift allows intermediaries to concentrate more deeply on their core strengths. Good Capital’s portfolio companies like, Cloudchef, Definitive, Propacity, and MyGenie exemplify this approach by leveraging AI to streamline processes and enhance decision-making, thereby empowering intermediaries to focus on delivering value-added services to their clients.

Arjun Malhotra, General Partner at Good Capital, expressed, “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.”

Good Capital proudly manages a diverse portfolio comprising over 25 startups, including industry leaders like unicorns such as Meesho and LEAD, as well as other promising ventures like Entri and Solar Square. Its strategic investments and widespread network of partners have positioned it as a key player in India’s burgeoning tech ecosystem.

Additionally, by providing strategic support and investment capital, Good Capital aims to be a powerful catalyst propelling the growth and success of their AI-driven portfolio startups. But the firm’s commitment extends well beyond mere financial backing; it also brings mentorship, access to networks, and resources essential for navigating the complexities of the startup journey to the table.