Steptrade Capital has achieved the first close of its Category II Alternative Investment Fund (AIF), Chanakya Opportunities Fund II (COF II), securing more than Rs 100 crore in investor commitments within three months of its launch.
Launched in February 2026 with a target corpus of Rs 500 crore, the fund completed its first close through an exclusive initial participation phase. It has attracted commitments from ultra-high-net-worth individuals, family offices and sophisticated investors seeking exposure to India’s growing pre-IPO market. Following the first close, capital deployment is scheduled to begin in August, while the fund has opened its next allocation window to a wider pool of eligible investors.
The company said the first close comes amid increasing investor interest in India’s private markets, with more businesses choosing to remain private for longer before listing, creating greater demand for pre-IPO investment opportunities.
Chanakya Opportunities Fund II follows Chanakya Opportunities Fund I, described by the company as India’s first SME Exchange-focused Category II AIF. The first fund was founded by CA Kresha Gupta and co-managed by CA Kresha Gupta and Ankush Jain, CFA. COF II is co-managed by CA Kresha Gupta and CA Akshay Dawra.
The fund will focus on three long-term investment themes. These include Advanced Manufacturing, covering electronics and ESDM, speciality chemicals, defence and aerospace, and semiconductors; Energy Transition and Infrastructure, including battery energy storage systems, electric vehicle ecosystems, power transmission, transformers, grid modernisation and data centre infrastructure; and Emerging Enablers, comprising AI and robotics, digital healthcare diagnostics, bio-manufacturing and rare earth supply chains.
According to the company, these sectors are expected to benefit from policy support, expanding domestic manufacturing, global supply chain diversification and accelerating technology adoption.
Unlike traditional listed equity funds, COF II is focused on pre-IPO and growth-stage companies that have reached commercial scale but remain privately held before entering the public markets.
Commenting on the milestone, CA Kresha Gupta, Fund Manager, Chanakya Opportunities Fund I and II, and Director, Steptrade Capital, said, “India’s next generation of listed companies is being built well before they reach the stock exchanges. 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.”
CA Akshay Dawra, Fund Manager, Chanakya Opportunities Fund II, added, “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.”
Steptrade Capital said the launch of a fund with a potential corpus of Rs 500 crore reflects growing demand for professionally managed pre-IPO investment strategies. The company added that, with commitments exceeding Rs 100 crore at the first close, Chanakya Opportunities Fund II has reached an early milestone in its fundraising journey.
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