Steptrade Capital makes first close of Rs 1,000 crore microcap fund, eyes emerging small businesses

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Steptrade Capital has announced the first close of its latest alternative investment fund—Revolution Fund-II (SRF-II)—as it looks to deploy Rs 1,000 crore into small and microcap businesses across India, with a focus on innovation-led sectors like renewables, defence, infrastructure, and waste management.

This marks the third AIF from the Ahmedabad-based firm and its second under the ‘Revolution’ series, following the performance of the Chanakya Opportunities Fund and Steptrade Revolution Fund-I. The fund will invest in both listed and unlisted firms, aiming to identify scalable opportunities in India’s fast-evolving economic landscape.

“This early close is a strong vote of confidence from our investors,” said CA Kresha Gupta, Director and Fund Manager at Steptrade Capital. “It reflects the strength of our investment philosophy—rooted in bottom-up research, market depth, and a clear focus on value creation in sectors that matter.”

SRF-II comes at a time when investor interest in microcaps is gaining momentum, albeit with rising concerns around volatility and valuation risks. Steptrade is positioning the fund as a vehicle for long-term capital compounding, with a focus on downside protection and disciplined deployment.

“In microcap investing, timing and structure matter as much as the idea itself,” said Ankush Jain, CFA, also a Director and Fund Manager at the firm. “SRF-II reflects a disciplined approach where every allocation is backed by depth of research, clear valuation logic, and a focus on protecting downside while capturing structural upside.”

Licensed to operate across all three AIF categories, portfolio management services (PMS), and foreign portfolio investment (FPI) routes, Steptrade has built a reputation in the SME investing space. It had earlier launched India’s first SME Exchange-focused AIF—Chanakya Opportunities Fund I.