Synopsis

Steptrade Capital has raised over Rs 100 crore in the first close of its Rs 500 crore Chanakya Opportunities Fund II. The Category II AIF will invest in growth-stage pre-IPO companies across manufacturing, energy transition and emerging technology sectors, beginning deployments in August.

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Steptrade Capital has secured more than Rs100 crore in commitments at the first close of its Chanakya Opportunities Fund II, three months after launching the Rs500 crore alternative investment fund focused on pre-IPO companies.

The Ahmedabad-based, SEBI-registered fund manager said the Category II AIF, launched in February, has attracted commitments from ultra-high-net-worth individuals and family offices. The fund will begin deploying capital in August.

The fund will invest in growth-stage companies across advanced manufacturing, energy transition and emerging technologies, targeting businesses before they list on stock exchanges.

Chanakya Opportunities Fund II is co-managed by Kresha Gupta and Akshay Dawra. It succeeds the firm's first fund, which focused on companies preparing to list on India's SME exchanges.

"India's next generation of listed companies is being built well before they reach the stock exchanges," said Kresha Gupta, fund manager of Chanakya Opportunities Funds I and II and director at Steptrade Capital. "The response to our first close reflects growing investor conviction that the pre-IPO stage has become an important part of long-term wealth creation. Our focus remains on identifying businesses that are benefiting from structural changes across manufacturing, energy and technology before they become widely accessible."

The first close comes as interest in India's private markets continues to grow, with more companies staying private for longer before pursuing public listings. Investors are increasingly seeking exposure to businesses in the late stages of private ownership.

Akshay Dawra, fund manager of Chanakya Opportunities Fund II, said investors are increasingly looking for institutional access to companies before they go public.

"The private markets have evolved significantly over the past few years. Investors are increasingly seeking institutional access to companies during their growth phase rather than after they become public. Our investment strategy is centred on identifying businesses with strong fundamentals and the potential to become category leaders over the coming years," he said.

The fund plans to back companies in sectors including electronics, specialty chemicals, defence, semiconductors, battery storage, electric vehicle infrastructure, power transmission, artificial intelligence, robotics and digital healthcare.

Steptrade Capital aims to raise Rs500 crore for the fund.

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