Good Capital, a venture capital firm based in Mauritius, announced on Friday its intention to invest $25 million, equivalent to approximately Rs 200 crore, in Indian AI startups during this fiscal year.

The funding will come from the $50 million corpus of Good Capital Fund II, with the entire amount expected to be utilized by 2027.

The General Partner of Good Capital, Arjun Malhotra said,"The total fund is $50 million which is planned to be used by 2027. Out of which Good Capital is deploying USD 25 million in AI startups empowering intermediaries and plans to deploy this by 2025.

In an official statement the company said,"Investing in technology products solving India-centric problems, the firm has announced plans to invest  $25 million in AI startups by FY25. These investments will primarily target sectors such as cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech.

The company also explained that,they intended to allocate funds towards 15-20 AI startups at both early-stage and Series-A funding levels. This will be achieved by leveraging AI and LLM (large language models) to establish innovative enterprises.

The investing firm claimed that their investment strategy will focus on supporting startups that empower intermediaries, rather than following the prevailing global trend of 'disruption'.

At present, 80% of the businesses in Good Capital's pipeline are utilizing AI in different sectors.

Arjun Malhotra further informed,"At Good Capital, we are committed to leveraging the inherent potential of India's unique structure as a small-business economy. We focus on investing in startups that leverage the expertise of local intermediaries to offer services & products with low acquisition costs and high conversion rates."

Good Capital holds a portfolio of over 25 startups, which includes unicorns like Meesho and LEAD, as well as other promising ventures such as Entri and Solar Square.