Alternative asset management firm Rockstud Capital has launched the ₹300-crore Rockstud Capital Investment Fund II. The Category I AIF (angel fund) will invest in startups at the pre-Series A to Series A stage.
The fund will invest in 25 startups across a spectrum of opportunities, focusing on digitalisation, sustainability, financial inclusion, consumption, health, and safety, with ticket sizes ranging from ₹1 crore to ₹10 crore.
It will focus on investing with a youth-focused consumption theme and may follow a co-investment model to help startups build on their initial product-market fit and scale to raise a Series A round, the company said in a press release. The fund received the licence from SEBI last month.
“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. The fund will focus on partnering with, and identifying early-stage growth companies... with a clear focus on profitability,” said Abhishek Agarwal, Founder and Managing Partner of Rockstud Capital.
According to Rockstud Capital, the fund is designed to follow a deal-by-deal structure instead of a blind pool structure and offers flexibility in ticket size. It provides an opportunity to co-invest with an investment manager in a diversified portfolio.