Chanakya Fund Trust has announced the launch of its first sector-agnostic fund, worth Rs 100 crore (USD 12.5 million), to invest in startups and small and medium companies (SMEs).
Chanakya Opportunities Fund I, a SEBI-registered Category-II alternative investment fund, would also have a greenshoe option of Rs 100 crore.
According to the trust, the fund would invest in profitable SMEs with high-potential possibilities in unorganised areas. Approximately 51 per cent of the corpus would be set aside for investments in startups in manufacturing, technology, and consumer products.
In a statement, it said 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 IPO," According to the fund, it will invest in about Rs 2 crore to Rs 10 crore each in about 25 companies.