In a bid to support and invest in Indian startups, the Chanakya Fund Trust has launched its first-ever sector-agnostic fund. The INR 100 Cr ($12.5 Mn) fund, named Chanakya Opportunities Fund I, aims to invest in startups and small and medium enterprises (SMEs) with high-potential opportunities in unorganised sectors.
The fund, which is registered with the Securities and Exchange Board of India (SEBI) as a Category-II alternative investment fund, will also have a greenshoe option of INR 100 Cr. The trust has stated that it will reserve about 51% of the corpus for investments in manufacturing, tech, and consumer product startups.
According to a statement released by the trust, the fund plans to invest about INR 2 Cr to INR 10 Cr each in approximately 25 companies. The statement also noted that the fund will provide exit opportunities through primary markets, as it intends to invest in companies that have the potential to get listed on SME exchanges with small-ticket size IPOs.
Kresha Gupta, founder and fund manager of Chanakya Fund Trust, said, “Chanakya Opportunities Fund I is our first offering. We are planning to raise INR 100 Cr in the first year. This is a close-ended fund, and we will be accepting subscriptions for the tenure of five years from the first close with a maximum of two extensions of one year each.”
The trust aims to raise capital from resident and non-resident Indians, high-net-worth individuals, banks, accredited investors, corporates, and trusts.
This move comes at a crucial time when investors are hesitant to invest in Indian startups due to macroeconomic headwinds, a sharp decline in the valuation of listed companies, and fears of an upcoming global recession. However, the Chanakya Fund Trust believes that their new fund will provide a much-needed boost to the Indian startup ecosystem.
In a statement, the trust said, “We believe that the Chanakya Opportunities Fund I will provide the necessary support to Indian startups and SMEs to grow and thrive. Our focus on unorganised sectors will also help us tap into a vast market that has largely been untapped so far.”
Investors and entrepreneurs alike have welcomed the launch of the fund. One entrepreneur, who wished to remain anonymous, said, “This is great news for Indian startups. With investors becoming increasingly cautious, it’s becoming harder and harder to raise funds. The launch of the Chanakya Opportunities Fund I will provide a much-needed boost to the ecosystem.”
The fund has also received support from industry experts. Avinash Gupta, CEO of a startup accelerator, said, “This is an excellent initiative by the Chanakya Fund Trust. The focus on unorganised sectors is particularly noteworthy, as it has the potential to create a significant impact on the Indian economy.”
Chanakya Opportunities Fund I is a welcome development for the Indian startup ecosystem. With investors becoming increasingly cautious, the fund will provide a much-needed boost to startups and SMEs, enabling them to grow and thrive in a challenging economic environment.
