Asset management firm Rockstud Capital said it launched its second fund, Rockstud Capital Investment Fund II, of Rs 300 crore ($36.4 million) to back pre-Series A and Series A stage startups.
The Securities and Exchange Board of India (SEBI) granted Rockstud Capital Investment Fund-II, a Category I Alternative Investment Fund-Angel Fund (Cat-I AIF-Angel Fund), a licence for its AIF Category I Angel Fund last month.
The fund would invest in 25 startups, with ticket sizes ranging from Rs 1 crore to Rs 10 crore, focusing on digitalization, sustainability, financial inclusion, consumption, and health and safety.
Its investment thesis will focus on a consumption topic targeted at young people. It might set the stage for and continue to use a co-investment model to give entrepreneurs growth capital to build on their initial product-market fit, scale, and raise a Series A round.
“As India moves towards becoming a $5 trillion economy, we feel this is an opportune time to enter the space, especially when companies are finding it difficult to raise capital amidst the funding winter,” said Abhishek Agarwal, Founder and Managing Partner of Rockstud Capital.
“The fund will focus on partnering and identifying early-stage growth companies through a well-defined process and deep network to foster partnerships with founders building scalable businesses with a clear focus on profitability,” he added.
According to Rockstud Capital, the fund will be overseen by a team of experienced professionals with a deep understanding of the alternative investment sector.