Good Capital Launches $30 Mn Fund II to Back AI Startups in India

Introduction

In a strong signal to India’s booming AI ecosystem, Good Capital , an early-stage venture capital firm known for backing breakout startups, has announced the launch of its $30 million Fund II . The fund will specifically focus on artificial intelligence (AI)-driven startups , aiming to catalyze innovation across sectors such as fintech, healthtech, SaaS, consumer tech, and enterprise solutions.

About Good Capital

Founded in 2018 by brothers Rohan and Arjun Malhotra , Good Capital has quickly positioned itself as one of India’s most founder-friendly VC firms. With its first fund of $25 million , the firm invested in over a dozen promising startups, building a reputation for spotting early winners.

Some of Good Capital’s portfolio companies include:

• Meesho – India’s leading social commerce platform.
• Entri – a vernacular learning app.
• LEAD School – now a unicorn in the edtech space.
• SolarSquare – a fast-growing cleantech startup

Why AI, Why Now?

The launch of Fund II comes at a time when AI is at the center of global innovation . With the Indian government’s IndiaAI Mission 2025 allocating significant resources for AI development, the ecosystem is primed for exponential growth.

Key drivers:

• UPI-scale adoption of digital infra → creating large datasets.
• Affordable cloud + compute → lowering barriers for AI startups.
• Rising founder talent → engineers and entrepreneurs returning from Silicon Valley to build in India.

Good Capital believes the next wave of unicorns will be AI-first companies solving problems for both India and global markets.

Investment Strategy of Fund II

Good Capital’s $30 million Fund II will:

• Back 15–20 early-stage AI startups , with initial cheques ranging from $500K to $2 million .
• Focus on founders building for Bharat (Tier II & III India) alongside global SaaS opportunities .
• Provide not just capital, but also hands-on operational support , including access to global mentors, product experts, and scaling playbooks.

According to co-founder Rohan Malhotra:

“AI is not just the future, it’s the present. With Fund II, we want to empower founders who are rewriting what’s possible with AI, from India for the world.”

The Bigger Picture: India’s AI Startup Boom

India is rapidly becoming a hotbed for AI entrepreneurship:

• Over 4,500 AI startups are already active.
• AI is projected to add $450–500 billion to India’s GDP by 2025.
• Global giants like Google, Microsoft, and Nvidia are setting up large AI research operations in India.

Good Capital’s Fund II will serve as a critical bridge between founder ambition and scalable execution , ensuring Indian AI startups compete on the global stage.