Jitendra Nagpal, former CFO of Zepto has founded Capinity Partners venture capital firm targeting early-stage startups. Capinity Partners aims to make a first close of its $30 million fund by the end of 2023. The firm will invest in digital-first startups up to pre-Series A stage, with focus on sector like as e-commerce, clean tech, consumer technology and fintech.
Nagpal is joined by partners Tarun Bhargava and Vikas Somani who bring extensive experience in finance and banking. Capinity is also developing climate-focused fund to support clean tech and climate startups in India. Jitendra Nagpal has embarked on new venture by launching Capinity Partners, venture capital firm that will cater to financial needs of early-stage startups. Capinity Partners aims to secure first close of its fund, with target size of $30 million by December 2023. The firm will primarily invest in digital-first startups that are in pre-Series A stage, focusing on sectors such as e-commerce, clean tech, consumer technology and fintech.
Nagpal, along with partners Tarun Bhargava and Vikas Somani, brings wealth of experience to Capinity Partners. Bhargava Founder and Managing Partner of TalentGen Advisory LLP is an angel investor in multiple startups and has strong background in finance. Somani CFO at Ovik Finance, possesses extensive banking experience including overseeing MSME loans in prominent financial institutions. Capinity Partners has already made pre-seed and seed investments in four startups although names have not been disclosed.
The firm aims to be catalyst for entrepreneurial success and is dedicated to mentoring startup founders on various aspects of their business including product development, go-to-market strategies, revenue models and investor pitching. The VC firm has set three core conditions for its investment thesis. First startup should target large enough total addressable market. Second it should have the potential to achieve positive unit economics quickly without heavy cash burn. Lastly, it should demonstrate a good return on capital employed and free cash flow.
While Capinity Partners is initially focused on early-stage investments, it is also developing a climate-focused fund dedicated to supporting clean tech and climate startups in India. The climate fund, expected to have corpus of $100-200 million aims to drive growth of clean tech startups and contribute to India’s efforts in combating climate change. Capinity Partners has attracted limited partners from around world including Middle East and Europe who remain optimistic about India’s growth potential.
The firm believes that current environment presents favorable opportunity for early-stage startups to thrive and it aims to provide additional runway with lower dilution to founders. With its diverse sector focus and global scope Capinity Partners is poised to support and nurture growth of innovative startups in India.