Capital-A, a manufacturing-focused venture capital fund, along with SanchiConnect, has announced an investment of Rs 27 crore in three startups under its manufacturing accelerator programme, MaXcel. The selection followed a nationwide evaluation of over 2,000 startups.

India has more than 3,000 deeptech startups and has attracted over USD 10 billion in cumulative funding over the past decade, according to industry estimates. However, capital-intensive manufacturing ventures remain at a relatively early stage. Manufacturing contributes around 16–17 per cent to India’s GDP and is targeted to reach 25 per cent under national policy objectives.

The three startups selected are Enerzi, focused on clean hydrogen systems; Misochain, developing flight-critical aerospace components; and Quintrans, building electromagnetic linear motion systems for industrial automation. They were formally inducted during the MaXcel Liftoff event in Bengaluru, attended by founders, investors and industry leaders.

MaXcel was created to address structural funding gaps faced by early-stage manufacturing founders operating in sectors such as energy transition, aerospace, industrial hardware, electronics and semiconductors. These ventures typically require longer development cycles, capital-intensive pilots and real-world validation before achieving commercial scale.

Capital-A and SanchiConnect conducted on-ground roadshows across Bengaluru, Pune, Ahmedabad, Kochi and Coimbatore to assess engineering capabilities and deployment readiness within operational environments. From over 2,000 applications, three startups were shortlisted based on technical depth, scalability and commercial potential.

Enerzi is developing microwave plasma-based methane-to-hydrogen conversion systems aimed at enabling lower-emission hydrogen production with engineered carbon co-products. Misochain is building indigenous aerospace components alongside in-house testing and certification capabilities to strengthen domestic supply chains. Quintrans is designing direct-drive electromagnetic linear motion systems to enhance precision and reliability in industrial automation and robotics.

Ankit Kedia, Founder and Lead Investor, Capital-A, stated that MaXcel was built on the conviction that early-stage industrial innovation requires patient capital and rigorous technical evaluation to support the transition from research to deployable systems.

Sunil K Shekhawat, Founder and CEO, SanchiConnect, highlighted the need for stronger collaboration between researchers, founders, investors and industry stakeholders to scale deeptech manufacturing innovations.

MaXcel forms part of Capital-A’s ongoing deployment of its Rs 400 crore Fund II, focused on manufacturing, climate and industrial technology, combining capital infusion with ecosystem access and operational guidance to institutionalise early-stage deeptech support in India.