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Steptrade Share Services Launches ₹1000 Crore SME & Microcap Fund to Propel India’s Next Market Leaders

• ByStartupStory     |    February 24, 2025

Steptrade Share Services, a leading Asset Management Company (AMC) specializing in Alternative Investment Funds, Portfolio Management Services (PMS), and Fund Management under IFSCA regulations, has launched a Rs 1000 crore SME and microcap fund that includes a Rs 500 crore green shoe option.

Steptrade Revolution Fund – Series II (SRF-II) is a close-ended Category III Alternative Investment Fund designed to unlock growth potential in SMEs and Microcap enterprises.

SRF-II offers investors access to Anchor Investment, Qualified Institutional Buyer (QIB), and Pre-IPO opportunities, catering to those seeking exposure to India’s next market leaders. The fund is designed to maximize value creation through a well-diversified portfolio, focusing on high-growth and underrepresented sectors.

CA Kresha Gupta, Founder and Director of Steptrade Share Services, said, “The next generation of market leaders is being built today. With our ₹500 crore AIF, we are committed to identifying and propelling high-potential Microcap and Small-cap companies toward their true potential.”

On the fund’s robust investment approach, Ankush Kumar Jain, Director of Steptrade Share Services, added, “Steptrade is recognized for its risk management through portfolio diversification. SRF-II will serve investors with high-growth opportunities while ensuring scalability and sustainability through its strategic investments.”

The SME sector in India has seen a significant shift in recent years, moving beyond illiquidity concerns to become one of the most dynamic segments of the economy.

The surge in SME IPOs, from raising ₹657 crore in 2019 to nearly ₹9,500 crore in 2024, demonstrates a rapidly evolving market now attracting serious institutional interest. A key driver of this transformation has been the rise in anchor participation, with nearly 68% of SME IPOs 2024 securing investments from leading funds, signaling strong confidence in the sector.

With major players like Morgan Stanley and HDFC Bank entering the SME IPO space, the market is witnessing a significant shift.

 Companies have started increasing their IPO issue sizes, with Danish Power raising approximately ₹198 crore in 2024 – the highest on the SME platform. This marks a new era where SMEs are raising capital and showcasing their ability to scale, proving their strong fundamentals and long-term growth potential. In the coming decade, SMEs will be the next blue chips, leveraging access to capital, operational efficiencies, and niche sectoral focus to drive India’s economic expansion.

Backed by stricter regulations that enhance investor trust and improve financial metrics—such as average revenue growth of 37% in 2024, SMEs are set to play a defining role in making India a global economic powerhouse.

About StepTrade:

Launched in mid-2024, Steptrade Share Services is a leading Asset Management Company (AMC) specializing in Alternative Investment Funds, Portfolio Management Services (PMS), and Fund Management under IFSCA regulations.

Founded by CA Kresha Gupta, one of India’s youngest fund managers, Steptrade has established itself as a pioneer in SME, Small-cap, and Micro-cap investments. With a strong commitment to transparency, innovation, and long-term value creation, Steptrade continues to empower investors while fostering economic growth in India’s evolving financial landscape.

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