Good Capital closes its second fund with investments in AI-powered startups

Venture capital firm Good Capital has closed its second fund at $30 million, aiming to back AI-driven startups after supporting companies like Meesho, Orange Health, and LEAD School

Good Capital, an early-stage venture capital firm, on Wednesday announced the final close of its second fund at $30 million (around ₹260 crore). The firm has a portfolio of startups including Meesho, Orange Health, and LEAD School.

 

The new fund, launched in 2023 with a target corpus of $35 million, has secured commitments largely from family offices across Asia and Europe. With this close, Good Capital aims to strengthen its strategy of supporting new-age, technology-first startups, with a particular focus on artificial intelligence (AI)-driven companies.

 

Some startups backed through this fund include Rio, which is reimagining access to healthcare with instant pharmacy delivery via WhatsApp; MyGenie, which automates fit-out execution with AI; Xhipment, a digital freight forwarding platform simplifying global trade for exporters; Xneeti, which is helping Indian sellers scale internationally with tech-first export tools; and Nuuk, a homegrown consumer appliances brand known for minimalist, eco-conscious design.

 

 

On the development, Arjun Malhotra, General Partner at Good Capital, said: “With Fund 2.0, we doubled down on high-conviction founders solving hard, real-world problems with clarity, intent, and deep insight into user behaviour. This phase has reinforced our belief that India’s next wave of breakout companies will emerge at the intersection of AI, infrastructure, and global ambition. As we look ahead, we remain focused on helping our portfolio scale thoughtfully and continuing to back builders who are pushing the boundaries of what’s possible – especially in long-tail industries where technology is still vastly under-leveraged.”

 

The VC firm launched its maiden $15 million fund in 2019 but ultimately deployed around $44 million (including LP co-investments) across 30 startups.

 

Going forward, the firm sees a significant opportunity for India to lead in practical, workflow-focused applications, especially in long-tail industries traditionally left behind by software, it said in a statement.