Friday, March 29, 2024
Outlook.com
Outlook India
Outlook Business

Rockstud Capital Launches $36.4 Million Angel Fund To Back Indian Start-ups

The fund will focus on companies operating in the digitalisation, sustainability, financial inclusion, consumption and health sectors

Rockstud Capital Launches $36.4 Million Angel Fund To Back Indian Start-ups

Outlook Start-Up Desk

POSTED ON March 14, 2023 1:15 PM

Rockstud Capital, an Indian asset management firm, has announced the launch of its second fund, Rockstud Capital Investment Fund II, which will provide funding to pre-Series A and Series A-stage start-ups. The fund is worth Rs 300 crore ($36.4 million) and will invest between Rs 1 crore and Rs 10 crore in 25 start-ups in the digitalisation, sustainability, financial inclusion, consumption and health sectors. The angel fund will also offer a flexible ticket size for current and follow-on funding rounds.

The investment fund aims to help companies build an initial product-market fit, achieve scalability and raise a Series A round. The firm's founder and managing partner, Abhishek Agarwal, said in a media report that the fund will focus on identifying early-stage growth companies through a defined process and network to foster partnerships with founders building scalable businesses with a focus on profitability.

Rockstud Capital is an alternative asset management firm that focuses on Indian companies via SEBI-regulated products. Founded in 2017, some of its portfolio companies are Everest Fleet, BigHaat, Instoried, Smartvizx, Fabheads and NOTO. In 2018, the company launched its first fund, Rockstud Capital Investment Fund – Series I, which invested in Pre-Series A stage start-ups and NSE-listed equities.

The announcement of the fund comes as several institutional investors, such as venture capital and private equity firms, are setting up or closing their funds to back India’s troubled start-up ecosystem. In February, PeerCapital marked the first closure of its Rs 300 crore fund, while in January, Dallas Ventures set up Rs 350 crore India-focused fund for enterprisetech start-ups. In the same month, Z3Partners announced the closure of Rs 550 crore fund and 100X.VC committed about $4 million in 25 start-ups.

According to reports, as many as 126 VC funds raised over $18 billion to back domestic start-ups in India last year. Rockstud Capital's latest fund is designed to provide funding to promising start-ups in key sectors, including digitalisation, sustainability, financial inclusion, consumption and health. The angel fund will help companies in building an initial product-market fit, attaining scalability and raising a Series A round.

  • Related Articles

    The move has provided comfort to start-ups, but the bigger question is whether founders will be able to transfer all their money out of the bank at once, and if the system will be able to support the...

    Indian Start-Ups Relieved As Withdrawal Limit For Silicon Valley Bank Lifted

    Regulators closed the Silicon Valley Bank on Friday after depositors rushed to withdraw their funds all at once. The only larger failure in U.S. banking history was the 2008 collapse of Washington...

    Federal Reserve To Review Its Supervision of Silicon Valley Bank

    Entrepreneurs who had deposited all their start-ups' money in Silicon Valley Bank are reportedly realising it makes more sense to spread their funds across several institutions

    Silicon Valley Bank's Demise Disrupts The Disruptors In Tech