Chanakya Opportunities Fund I, a Sebi-registered Category II Alternative Investment Fund, will invest in successful SME firms with growth potential in unorganized industries; start-ups in manufacturing, consumer goods, and technology will account for about 51% of the fund’s total investment. One of the nation’s youngest female investors, Kresha Gupta, a 24-year-old CA starts a fund worth Rs 100 billion for startups and SMEs.
A Category II Alternative Investment Fund registered with the Securities and Exchange Board of India (Sebi), Chanakya Opportunities Fund I, announced the introduction of a 100 crore sector-agnostic SME and start-up-oriented fund with an additional 100 crore green shoe option.
The fund is a component of the Chanakya Fund Trust, which received permission last month from the authority overseeing the capital markets to introduce a Cat 2 AIF.
“Our objective is to develop top-tier investment solutions at affordable prices for investors in Indian markets. Under this aegis, we will create and introduce goods, added Gupta.
“Our initial offering is Chanakya Opportunities Fund I. In the first year, we aim to raise 100 crore. Since this is a closed-ended fund, we will only be able to take subscriptions for a maximum of two one-year extensions during its initial five-year term, she noted.
The fund will make investments in successful SMEs with promising prospects in unorganized areas. A little over 51% of the corpus will be allocated to start-up SME businesses in the manufacturing, consumer goods, and technology sectors.
As the fund plans to invest in businesses with the potential to list on SME exchanges with modest ticket-sized public issues, it will offer exit opportunities through primary markets.
Opportunities Fund for Chanakya With a ticket size ranging from 2 crores to 10 crores per firm, I am a closed-ended scheme that intends to invest in about 25–30 companies.
Investors with a longer time horizon may consider investing in the program even though the fund will use rigorous filtration and due diligence procedures to find the finest investment ideas.
The fund attempts to raise money from high-net-worth individuals (HNIs), banks, accredited investors, corporations, and trusts as well as Indian residents and non-residents.
After beginning her career with Vodafone Idea, she has been following the equity markets for more than five years and, while obtaining her CA degree, has been consulting and assisting businesses looking to go public on the SME exchange.
