Financial services provider Steptrade Capital has made the first close of its third alternative investment fund to invest in emerging companies in the small and microcap segments.

The new vehicle, Steptrade Revolution Fund-II (SRF-II), aims to deploy Rs 1,000 crore, Ahmedabad-based Steptrade said in a press release Tuesday. It didn’t disclose the amount it raised in its first close. 

This is the firm’s second offering under the Revolution Fund banner; Steptrade Revolution Fund-I was a Category-III alternative investment fund. Category-III funds include hedge funds and funds that make private investments in public equities.

Steptrade’s maiden alternative investment fund was Chanakya Opportunities Fund, which had an initial corpus of Rs 100 crore with a greenshoe option of an additional Rs 100 crore. The company claims that with each fund, it has deepened its footprint in the small and microcaps segment. 

“This early close is a strong vote of confidence from our investors,” said Kresha Gupta, director and fund manager at Steptrade. “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.”

The new fund will target both listed and unlisted small and microcap businesses. It will continue Steptrade’s approach to investing long-term value in sectors such as renewables, defence, waste management, infrastructure, and other emerging themes, the company said.

“In microcap investing, timing and structure matter as much as the idea itself. 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. At Steptrade, we are building portfolios that can compound quietly, through cycles,” said Ankush Jain, director and fund manager.