a99 Ventures: 10 Key Things You Must Know

Overview

a99 Ventures, formerly known as Artha99, is a Chennai-based early-stage venture capital firm specializing in investments within India's manufacturing and infrastructure sectors. Established in 2021, the firm has rapidly positioned itself as a leading specialist investor dedicated to backing visionary founders who are building India's industrial backbone—factories, supply chains, infrastructure, and industrial technologies critical for the country's growth story. With a clear focus on catalyzing the manufacturing resurgence in India, a99 Ventures has garnered significant commitments and has announced ambitious plans for a third fund targeting a corpus of $100 million. This article explores ten essential aspects of a99 Ventures, highlighting its unique investment philosophy, portfolio, strategic approach, and the broader impact on India's industrial growth.

1. Origin and Evolution of a99 Ventures

Founded in 2021 by Vignesh Shankar, a99 Ventures (initially branded as Artha99) emerged from Shankar's vision to channel investment capital into India's revitalizing manufacturing and infrastructure sectors. Shankar transitioned from a corporate role at Stanley Black & Decker to establish this SEBI-registered Category I Alternate Investment Fund, positioning a99 as a specialist early-stage investor targeting startups at the Pre-Series A and Series B stages. Over the past four years, a99 has evolved its brand and expanded its fund corpus, reflecting a strategic focus on nurturing indigenous industrial innovation tailored for India's growth century.

2. Investment Focus and Sector Specialization

a99 Ventures primarily invests in startups that contribute to India's manufacturing and industrial infrastructure revival. The firm's thesis centers around four strategic pillars: IP or R&D-driven manufacturing, the "shovel strategy" that targets ancillary technologies to high-risk sunrise industries such as semiconductors and nuclear energy, digitization of manufacturing processes, and infrastructure-led ancillary businesses. By focusing on high-complexity industrial technologies and export-oriented platform plays spanning sectors like automotive ecosystem, aerospace, specialty chemicals, semiconductors, and alternate energy, a99 aims to support firms with strong IP moats and scalable business models.

3. Fundraising Milestones and Financial Trajectory

a99 has successfully raised multiple funds since inception. Its second fund, launched in 2022, started with a target corpus of Rs 50 crore but was expanded to Rs 105 crore after exercising a greenshoe option due to strong investor interest. The firm is currently in the process of raising its third fund, targeting $100 million (approximately Rs 850 crore) with plans to deploy capital into 12 to 15 startups. Notably, a99 has secured soft commitments of $30 million from both existing and new limited partners and anticipates a first close by April 2026. This fundraising reflects confidence in India's industrial ecosystem and the firm's ability to identify promising startups.

4. Investment Strategy and Deal Size

a99 writes cheques ranging from $5 million to $10 million, focusing on startups between pre-Series A to Series B funding rounds. The firm adopts a disciplined, theme-driven approach, preferring businesses with visibility on revenue and margin expansion. Approximately 20% of the new fund is earmarked for follow-on investments in promising portfolio companies, while the remaining 80% is allocated for fresh investments. This strategy fosters consistent founder support and operational involvement, aligning with India's manufacturing growth trajectory.

5. Portfolio Highlights and Notable Investments

The firm's portfolio spans a variety of startups integral to India's industrial promise. Investments include Aditya Avartan Technologies, a maker of rare earth-magnet-free motors; Intangles, an AI-powered predictive fleet management solutions provider; Innocule, a chemical solutions company; EzeRx and Lyzr.ai in deep tech and AI; and Raptee.HV, an electric vehicle manufacturer known for launching India's first high-voltage electric motorcycle. The portfolio companies reflect a commitment to technology-driven manufacturing innovation with significant revenue traction and export orientation.

6. Track Record and Exits

a99 Ventures boasts successful exits, including a notable one where Futurice UK, a subsidiary of Finland's Futurice, acquired its stake and provided 7X returns on invested capital. This mark of success highlights a99's ability to back ventures capable of scaling and providing lucrative returns. The firm closely monitors follow-on rounds of its portfolio companies to strategize exit routes, maintaining a balanced approach towards capital recycling and investor returns.

7. Leadership and Team Dynamics

The firm is led by founder and managing partner Vignesh Shankar, with senior partners such as Ganesh Sathyamurthy guiding investment operations. The team includes professionals with expertise in venture capital, investment banking, and startup ecosystems, fostering a hands-on, founder-partner experience. a99's office in Chennai supports close collaboration with portfolio companies, amplifying operational support beyond capital investment.

8. Relationship with DC Capital Advisors

a99 Ventures maintains strategic connections with DC Capital Advisors, a boutique investment bank based in Chennai offering M&A advisory, valuation, and fundraising services. Key personnel like Ganesh Sathyamurthy hold roles in both organizations, enhancing synergies between investment advisory and venture capital deal execution. This relationship facilitates comprehensive support ranging from capital raising to transaction structuring, strengthening a99's investment thesis and fund deployment capabilities.

9. The Broader Industrial Ecosystem and Make in India

a99 Ventures' mission aligns with India's government-led "Make in India" initiative, aimed at boosting domestic manufacturing backed by production-linked incentives (PLIs) and state subsidies. The industrial landscape in India is witnessing rapid growth with multinational corporations such as Apple and Samsung expanding manufacturing footprint domestically. Against this backdrop, a99's focus on startups developing cutting-edge industrial technologies and ancillary products positions it as a critical catalyst for innovation and industrialization in India.

10. Future Prospects and Market Outlook

With India's manufacturing sector expected to grow significantly in the coming decades and the government's push for advanced manufacturing technologies, a99 Ventures is strategically poised to capitalize on this growth. The firm's upcoming $100 million fund intends to deepen its investment footprint in industrial startups, facilitating technology development, supply chain robustness, and infrastructure innovation. As India's industrial sector evolves, a99 aims to remain at the forefront, backing visionary founders and catalyzing India's manufacturing renaissance.

Conclusion

a99 Ventures represents a dynamic and focused player in India's early-stage venture capital ecosystem, dedicating its resources to the nation's manufacturing and industrial sectors. Since its inception in 2021, it has demonstrated a clear vision backed by disciplined investment strategies, an expanding and diverse portfolio, and strong leadership. The firm's approach intertwines deep industry expertise with a hands-on operational philosophy that supports startups poised to redefine India's industrial future. As India marches towards its goal of becoming an advanced economy, a99's role in fueling the backbone sectors is both strategic and transformative. The firm’s journey invites all stakeholders to watch closely as it shapes the contours of India's manufacturing and infrastructure-led growth story.