Rockstud Capital, an alternative asset management firm, on Tuesday launched a fund that will invest in start-ups in the pre-series A to Series A stage. The fund has a target size of Rs 300 crore and got a licence from India’s markets regulator last month.
The Rockstud Capital Investment Fund-II, a Category I AIF (Angel Fund), has a ticket size ranging from Rs 1 crore to Rs 10 crore and it will invest in 25 start-ups focused on digitalisation, sustainability, financial inclusion, consumption, and health and safety.
The fund’s preferred themes will be youth-focused consumption models. It may lead and further follow a co-investment model to provide growth capital to startups to build on their initial product-market fit and be able to scale and raise Series A round.
The fund follows a deal-by-deal structure, offering flexibility in ticket size in current and follow-on rounds. It provides an opportunity to co-invest with a seasoned investment manager in a diversified portfolio spread across sectors.
"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," said Abhishek Agarwal, founder and managing partner of Rockstud Capital.