Ahmedabad-based investment firm Steptrade Capital has announced the first close of its Category II Alternative Investment Fund (AIF), Chanakya Opportunities Fund II (COF II), securing more than ₹100 crore in investor commitments within three months of its launch.
Launched in February 2026 with a target corpus of ₹500 crore, the fund will invest in pre-IPO and growth-stage companies operating in sectors such as advanced manufacturing, energy transition, and emerging technologies. The successful first close highlights growing investor interest in India’s next generation of high-growth businesses.
Strong Investor Response Within Three Months of Launch
Steptrade Capital said the first close of Chanakya Opportunities Fund II attracted commitments from ultra-high-net-worth individuals (UHNIs), family offices, and other eligible investors.
The fund crossed the ₹100 crore commitment mark within three months of launch, reflecting increasing demand for professionally managed alternative investment opportunities focused on India’s expanding private markets.
Following the first close, the fund has opened its next allocation window for additional investors, while capital deployment is scheduled to begin in August 2026.
Fund to Back Pre-IPO and Growth-Stage Companies
Chanakya Opportunities Fund II has been designed to invest in companies that are entering high-growth phases and preparing for future public listings.
The fund will focus on businesses benefiting from India’s manufacturing expansion, rapid technology adoption, and the country’s ongoing energy transition. By targeting companies before they reach public markets, the fund aims to generate long-term value for investors while supporting businesses with strong growth potential.
The investment strategy reflects rising institutional interest in India’s private equity and pre-IPO ecosystem.
Three Key Investment Themes Drive the Strategy
The new fund will allocate capital across three major sectors expected to drive India’s long-term economic growth.
The first theme focuses on advanced manufacturing, including industries such as electronics, semiconductors, defence, and speciality chemicals.
The second investment pillar is energy transition and infrastructure, covering battery storage, electric vehicles (EVs), power transmission, and data centres.
The third theme targets emerging technologies, including artificial intelligence (AI), robotics, digital healthcare, and bio-manufacturing.
These sectors have attracted increasing investor attention as India strengthens its manufacturing capabilities and accelerates digital transformation.
Experienced Leadership to Manage the Fund
Chanakya Opportunities Fund II is managed by CA Kresha Gupta and CA Akshay Dawra, who oversee Steptrade Capital’s investment strategy.
The new fund builds on the firm’s earlier investment vehicle, which focused on companies preparing to list on India’s SME exchanges. With Fund II, Steptrade is expanding its investment mandate to include larger growth-stage businesses operating across high-potential sectors.
The broader strategy allows the firm to participate in companies that are expected to benefit from long-term structural changes in India’s economy.
India’s Private Markets Continue to Attract Capital
The successful first close of Chanakya Opportunities Fund II reflects growing investor confidence in India’s alternative investment ecosystem.
As family offices and high-net-worth investors seek opportunities beyond traditional public markets, Category II AIFs have emerged as an increasingly popular investment vehicle for accessing high-growth private companies.
With a target corpus of ₹500 crore, a sector-focused investment strategy, and strong early investor participation, Steptrade Capital is positioning the fund to capitalize on opportunities emerging across manufacturing, clean energy, and deep technology.
The latest milestone also highlights the growing role of domestic alternative investment funds in supporting India’s next generation of growth stage businesses as they prepare for future public listings and large-scale expansion.
