Kyro Capital has launched a SEBI-registered Category II alternative investment fund (AIF) with a target corpus of ₹100 Cr to back growth-stage companies
Called Kyro India Opportunities Fund – I, the fund will invest in profitable Indian companies that are expected to go public within 24 to 36 months
The firm is targeting the first close of the fund by July 2026. It expects the final close to take place before June next year
Indore-based financial services firm Kyro Capital has launched a SEBI-registered Category II alternative investment fund (AIF) with a target corpus of ₹100 Cr to back growth-stage companies preparing for public listings.
Called Kyro India Opportunities Fund – I, the fund will invest in profitable Indian companies that are expected to go public within 24 to 36 months. The fund is targeting an internal rate of return (IRR) of 35% through the investments.
The firm is targeting the first close of the fund by July 2026. It expects the final close to take place before June next year. The fund has a planned tenure of five years, with an option to extend it by two years.
The minimum investment commitment for limited partners (LPs) is ₹1 Cr, in line with AIF regulations. The fund has a hurdle rate of 10% per annum and a sponsor commitment of ₹2.5 Cr.
Speaking to Inc42, Kyro Capital founder and managing director Aman Maheshwari said the fund is currently in discussions with HNIs, promoters of companies that the firm has previously advised, and a handful of European family offices for commitments.
The fund will primarily focus on growth-stage companies operating in sectors such as manufacturing, defence supply chains, electrical equipment, energy storage systems and the broader power ecosystem.
Maheshwari said the fund will look at opportunities across the power value chain, including generation, transmission and related infrastructure segments.
While the fund’s stated focus areas include energy and power, advanced manufacturing and consumer businesses, Maheshwari said the investment team remains open to evaluating opportunities across sectors if they fit the fund’s investment criteria.
Apart from primary investments, the firm may also participate in secondary transactions and acquire shares from existing investors before a company’s public market debut.
Founded in 2024 by Maheswari, Kyro Capital is an investment banking and transaction advisory firm that advises growth-stage companies on capital raising, M&A, and strategic transactions.
The launch marks the firm’s entry into asset management after operating as an investment banking and transaction advisory business.
The company has also indicated plans to expand the India Opportunities platform through additional funds in the future and is exploring opportunities in overseas markets such as South Korea, Taiwan and Germany, particularly in sectors including semiconductors, precision manufacturing and energy transition.
The fund launch comes amid growing investor interest in manufacturing and deeptech startups in India. Over the past year, several investors have launched dedicated vehicles targeting sectors such as aerospace, defence, semiconductors, industrial automation, energy transition and advanced manufacturing.
Last month, venture capital firm Capital-A announced the first close of its second fund at ₹160 Cr, with a stated focus on manufacturing and deeptech startups across aerospace, robotics, industrial hardware and energy transition.
Funding activity in the segment has also picked up. Battery technology startup e-TRNL Energy secured ₹27.4 Cr in seed funding earlier this year, while spacetech startup Bellatrix Aerospace raised $20 Mn in a pre-Series B round to expand manufacturing of satellite propulsion systems.
Source: Inc42 - Startups
