Steptrade Capital has completed the first close of its Category II Alternative Investment Fund, Chanakya Opportunities Fund II, with investor commitments exceeding Rs 100 crore. This milestone was achieved within three months of the fund’s launch in February 2026.
With a target corpus of Rs 500 crore, the fund is focused on growth stage and pre IPO companies in advanced manufacturing, energy transition, and emerging technologies.
Growth Fund Deployment
Asset management firm noted that the first close commitments came largely from ultra high net worth individuals, domestic family offices, and other institutional allocators. The fund manager has set August as the start date for active capital deployment, with the next allocation window opening soon after to bring in additional domestic and international investors.
Chanakya Opportunities Fund II is managed by CA Kresha Gupta and CA Akshay Dawra. The fund’s launch follows the firm’s debut vehicle, which focused on investing in SMEs preparing to list on India’s dedicated SME exchanges. This second fund marks a clear pivot toward late stage private market assets, targeting companies closer to entering the mainboard public markets.
The deployment strategy for the new corpus is organized around three distinct investment mandates. The first focus area is advanced manufacturing, which encompasses companies in electronics manufacturing services, semiconductors, defence production, and speciality chemicals.
Second core vertical targets energy transition and associated infrastructure, focusing on battery storage systems, electric vehicle ecosystems, power transmission equipment, and data centre infrastructure. The final allocation vertical involves emerging technologies, specifically artificial intelligence applications, robotics, digital healthcare systems, and bio-manufacturing platforms.
Pre-IPO Focus
Investment thesis rests on identifying companies that stand to gain from macro tailwinds, including accelerated technology adoption, domestic manufacturing incentives, and localized supply chain integration.
Private market valuations in the growth stage have undergone adjustments over the past twenty-four months, creating what corporate allocators view as realistic entry points for institutional capital before public listing processes begin.
"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," said CA Kresha Gupta, Director and Fund Manager at Steptrade Capital.
She further noted that the operational focus remains on identifying businesses that are benefiting from structural changes across manufacturing, energy, and technology before they become widely accessible to the public markets.
Broader macroeconomic environment in India has seen an expansion of capital requirements among mid-sized companies aiming to scale capacity ahead of mainboard listings.
Increased capital expenditures in defence manufacturing, localization of electronic components, and heavy infrastructure requirements for data storage have driven the demand for specialized growth equity that combines regulatory oversight with institutional backing.
The primary operational indicator for alternative investment funds in this segment will be the velocity of capital deployment and the capability to secure proprietary deal flow in highly competitive sectors like defence and semiconductors.
Long-term performance of the fund will depend on navigating late-stage private valuations and ensuring structured exit routes through mainboard listings as the target entities scale operations.
About Firm
Steptrade Capital is a SEBI-registered alternative investment fund manager based in Ahmedabad, Gujarat. The asset management firm specializes in private equity and microcap investment strategies designed for family offices and high-net-worth individuals seeking exposure to India-centric growth themes.
Company manages the Chanakya Opportunities Fund series, focusing on a research-driven approach to identify investment opportunities across private and listed small-to-mid-sized enterprises.
