Steptrade's Chanakya Fund II Hits Rs 100 Cr First Close
20 Jul 2026
Steptrade Capital has announced the first close of its Chanakya Opportunities Fund II (COF II), securing investment commitments worth Rs 100 crore toward a target corpus of Rs 500 crore. The fund is designed to invest in pre-IPO and growth-stage companies.
What happened
COF II was launched in February 2026, with the Rs 100 crore first close announced in July 2026. Commitments came from ultra-high-net-worth individuals (UHNIs), family offices, and other investors, though the report does not disclose the number or identity of participants. Capital deployment is scheduled to begin in August.
CA Kresha Gupta commented on the milestone: "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."
Steptrade Capital is also opening the fund's next allocation window to a wider pool of eligible investors, suggesting further capital could be raised beyond this first close.
Key numbers
- Rs 100 crore secured at first close
- Rs 500 crore target corpus overall
What's missing
The report does not name specific companies or sectors the fund plans to target, nor does it detail the fund's fee structure, minimum ticket size, or tenure. There is also no indication of how long it might take to move from the Rs 100 crore first close to the full Rs 500 crore target.
Why founders should care
For founders in the pre-IPO or growth stage, this development could plausibly signal a new pool of capital becoming available once deployment starts in August. The involvement of UHNIs and family offices may indicate these investor classes are likely to become more active in growth-stage financing going forward, though the specific sectors or company profiles they favor remain unclear from available facts.
At the same time, founders should note that the fund has reached only 20% of its target corpus so far — meaning the full Rs 500 crore may not be available for deployment for some time, and the pace of further fundraising is uncertain. Founders evaluating this fund as a potential capital source should also weigh the inherent valuation and liquidity risks that typically accompany pre-IPO and growth-stage investments, even though such risks are not directly addressed in the available information.
Risks and open questions
- The fund has reached only 20% of its Rs 500 crore target, leaving full corpus realization uncertain.
- Pre-IPO and growth-stage investments carry valuation and liquidity risks that are not detailed in current disclosures.
- No clarity yet on which sectors or company types will be prioritized once deployment begins.