Ahmedabad-based investment firm Steptrade Capital has announced the successful first close of its Category II Alternative Investment Fund (AIF), Chanakya Opportunities Fund II (COF II), securing investor commitments exceeding ₹100 crore within just three months of its launch.
The fund, introduced in February 2026 with a target corpus of ₹500 crore, is designed to invest in pre-IPO and growth-stage companies operating in high-potential sectors such as advanced manufacturing, energy transition, and emerging technologies.
The milestone highlights growing investor confidence in India’s expanding innovation ecosystem and the increasing demand for alternative investment opportunities focused on high-growth businesses.
Strong Early Investor Interest
Steptrade Capital said the first close attracted participation from ultra-high-net-worth individuals (UHNIs), family offices, and other eligible investors, reflecting strong interest in companies positioned to benefit from India’s long-term economic and industrial growth.
The fund is scheduled to begin deploying capital in August 2026, while opening its next allocation window for prospective investors.
Focus on India’s Next Generation of Growth Companies
Chanakya Opportunities Fund II aims to identify and invest in businesses that are approaching public market readiness or are in the growth stage of their lifecycle.
The fund’s investment strategy is centred on three key themes expected to drive India’s economic transformation over the coming decade.
1. Advanced Manufacturing
The fund will back companies operating across:
- Electronics manufacturing
- Semiconductor ecosystem
- Defence manufacturing
- Specialty chemicals
- Industrial technologies
These sectors are expected to benefit from India’s manufacturing push, government incentives, and rising global demand for diversified supply chains.
2. Energy Transition & Infrastructure
Steptrade Capital will also invest in businesses supporting the clean energy transition, including:
- Battery energy storage
- Electric vehicles (EVs)
- Power transmission
- Renewable energy infrastructure
- Data centres
The segment is witnessing rapid investment as India accelerates its transition toward sustainable infrastructure and electrification.
3. Emerging Technologies
A significant portion of the fund will target technology-driven businesses working in areas such as:
- Artificial Intelligence (AI)
- Robotics
- Digital healthcare
- Bio-manufacturing
- Deep technology
These sectors are expected to play a pivotal role in shaping India’s innovation economy over the coming years.
Experienced Leadership Team
Chanakya Opportunities Fund II is managed by CA Kresha Gupta and CA Akshay Dawra, who oversee the fund’s investment strategy and portfolio construction.
The new fund builds on Steptrade Capital’s earlier investment vehicle, which focused on companies preparing for listings on India’s SME stock exchanges.
With COF II, the firm is expanding its investment focus to support businesses with the potential to scale rapidly before entering the public markets.
Capitalising on India’s Growth Story
India continues to attract increasing domestic and global investment as manufacturing, digital transformation, clean energy, and advanced technologies emerge as major drivers of economic growth.
Government initiatives such as Make in India, the PLI (Production Linked Incentive) Scheme, investments in semiconductor manufacturing, and the rapid adoption of AI and digital technologies are creating significant opportunities for growth-stage companies.
By targeting businesses operating in these high-growth sectors, Chanakya Opportunities Fund II seeks to capitalize on long-term structural trends while supporting entrepreneurs building the next generation of Indian enterprises.
Looking Ahead
With more than ₹100 crore already committed, Steptrade Capital has made a strong start toward achieving the fund’s ₹500 crore target corpus.
As capital deployment begins later this year, the firm plans to invest in businesses that combine strong fundamentals with scalable business models and long-term growth potential.
The successful first close also underscores growing investor appetite for alternative investment funds focused on innovation, industrial growth, and India’s evolving technology ecosystem.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.