Asset management firm Rockstud Capitation said it launched its second fund, Rockstud Capital Investment Fund-II, of rs 300 crore ($36.4 million) to back pre-Series A and Series A stage startups. Rockstud Capital Investment Fund-II, a Category I Alternative Investment Fund Angel Fund (Cat-I AIF -Angel Fund), received a license from the Securities and Exchange Board of India (SEBI) last month for its AIF Category I Angel Fund. The fund will invest in 25 startups with a focus on digitalisation, sustainability, financial inclusion, consumption, and health and safety, with ticket sizes ranging between Rs 1 crore and Rs 10 crore.

Its investment thesis will be based around a youth-focused consumption theme. 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 can scale and raise a Series A round.

"As India moves towards becoming a $5 trillion economy, we feel this is an opportune time to enter the space, especially when companies are finding it difficult to raise capital amidst the funding winter," said Abhishek Agarwal, Founder and Managing Partner of Rockstud Capital.

"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," he added. The fund will be managed by a team of experienced professionals with a deep understanding of the alternative investment landscape, Rockstud Capital said.