Rockstud Capital Investment Fund II: Category I AIF for Deep Tech and Manufacturing Startups
India's push into defence, aerospace, advanced materials and strategic manufacturing has created a new generation of technically intensive startups. Rockstud Capital Investment Fund II, managed by Rockstud Capital LLP, is a SEBI-registered Category I AIF (registration IN/AIF1/22-23/1217) that invests in early-stage, IP-led companies building manufacturing-led solutions. The August 2026 AIF guide lists its theme as "Yuva Bharat".
This guide covers the manager, the investment mandate, the fund terms and the risks of early-stage deep-tech investing.
India's push into defence, aerospace, advanced materials and strategic manufacturing has created a new generation of technically intensive startups. Rockstud Capital Investment Fund II , managed by Rockstud Capital LLP, is a SEBI-registered Category I AIF (registration IN/AIF1/22-23/1217) that invests in early-stage, IP-led companies building manufacturing-led solutions. The August 2026 AIF guide lists its theme as "Yuva Bharat" . This guide covers the manager, the investment mandate, the fund terms and the risks of early-stage deep-tech investing. Rockstud Capital Investment Fund II at a glance Category Category I AIF (venture / angel fund) SEBI registration IN/AIF1/22-23/1217 Investment manager Rockstud Capital LLP Fund manager Abhishek Agarwal Structure Closed-ended Fund tenure 5 years Minimum commitment ₹1 crore Initial drawdown ₹10 lakh Balance commitment call Within 12 months Target fund size ₹300 crore (₹125 crore + ₹175 crore greenshoe) Sponsor contribution 5% Fund theme Yuva Bharat Operating expenses Up to 1%, varying by unit class Fund terms above are as compiled in the August 2026 AIF guide from manager disclosures. Terms can change between closings; the Private Placement Memorandum (PPM) is the binding source. About Rockstud Capital Rockstud Capital is an early-stage investor led by founder and managing partner Abhishek Agarwal , an entrepreneur and angel investor. In 2023 the firm announced its second AIF, a ₹300 crore vehicle to invest in startups at the pre-Series A to Series A stage. Its website describes the fund as partnering with technically strong founding teams working on complex problems with potential to scale into globally relevant businesses. Investment mandate and themes Rockstud Capital Investment Fund II focuses on manufacturing-led solutions across deep technology , with emphasis on: Defence, aerospace and space technologies Strategic manufacturing and industrial systems Energy efficiency and advanced materials Manufacturing-linked consumer brands The "Yuva Bharat" theme reflects a bet on young Indian founders building in sectors that benefit from policy support for domestic manufacturing and self-reliance. Policy tailwinds can change, however, and should not be the sole basis of an investment case. How a Category I AIF works Category I AIFs are funds that SEBI views as having positive spillover effects for the economy: venture capital funds (including angel funds), SME funds, social impact funds and infrastructure funds. They are closed-ended, cannot use leverage except for limited temporary needs permitted by regulation, and generally enjoy pass-through tax treatment for income other than business income, meaning investors are taxed on their share of income rather than the fund. For a deeper primer, read our Category I AIF guide (/insights/category-i-aif-guide) . SEBI generally requires a minimum investment of ₹1 crore per investor in an AIF (with lower thresholds for specific cases such as angel funds and accredited investors), and every scheme is offered only through private placement on the basis of its PPM. You can check any AIF's registration on SEBI's list of registered AIFs (https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=16) . For a full overview of the asset class, see our guide to Alternative Investment Funds in India (/insights/aif-india) . Fee structure and share classes Class Capital commitment Management fee (p.a.) Performance fee Hurdle — ₹1 crore 2.00% 20.00% 20.00% The guide notes that fees vary by unit class, broadly including operating expenses of up to 1% in addition to the management fee. When comparing fees, look at the full cost stack: management fee, performance fee and whether it has a catch-up, set-up and operating expenses charged to the scheme, and any exit load. SEBI requires AIFs to offer a direct plan, and distribution commissions in regular plans must be disclosed. Money n Wealth earns distribution commission on regular plans, as set out in our commission disclosure (/legal/commission) . Key risks Technology and execution risk: deep-tech products can take years to commercialise and may not achieve market fit. Capital intensity: hardware and manufacturing startups often need large follow-on rounds; if these do not come, value can be impaired. Customer and policy concentration: defence and aerospace companies may depend on a few government or institutional buyers and on procurement policy. Illiquidity: a 5-year closed-ended fund with startup exits that may take longer than planned. High hurdle, high carry: the 20% performance fee over a 20% hurdle aligns the manager with strong outcomes but also signals the high-risk nature of the strategy. Who may consider this fund Eligible investors seeking a thematic allocation to Indian deep tech and strategic manufacturing, who can commit capital for at least five years and accept the possibility of significant loss, may evaluate this fund as a small satellite holding alongside a diversified core portfolio. Questions to ask before you commit How many companies has Fund II backed so far, and what is the target portfolio size? How does the fund support capital-intensive companies through follow-on rounds? What exposure does the portfolio have to government procurement or policy-dependent revenue? Exactly how are operating expenses charged across unit classes? What does the PPM say about valuation policy, key-person events, investor reporting frequency and the procedure if the tenure is extended? How does this commitment fit your overall asset allocation, liquidity needs and existing PMS (/products/pms) , mutual fund (/products/mutual-funds) and direct equity (/products/equity) holdings? How Money n Wealth can help Money n Wealth helps eligible investors evaluate and access Alternative Investment Funds (/products/aif) and Portfolio Management Services (/products/pms) across managers, so that a decision rests on the documents and on how the product fits your portfolio, not on a pitch. We can walk you through the PPM, compare Rockstud Capital Investment Fund II with other funds in the same category, explain the drawdown and tax mechanics, and coordinate the onboarding paperwork if you decide to proceed. Next step: book a free portfolio review (/portfolio-review) or talk to our team (/contact) to discuss whether a Category I AIF has a place in your portfolio. You can also start with a financial health check (/financial-health-check) . Frequently asked questions What is Rockstud Capital Investment Fund II? It is a SEBI-registered Category I AIF (IN/AIF1/22-23/1217) managed by Rockstud Capital LLP that invests in early-stage, IP-led deep technology and manufacturing-linked startups. What does the Yuva Bharat theme mean? It is the fund theme listed in the August 2026 AIF guide, reflecting a focus on young Indian founders building in sectors such as defence, aerospace, advanced materials and strategic manufacturing. What is the minimum investment? The guide lists ₹1 crore, with an initial drawdown of ₹10 lakh and the balance called within 12 months. Confirm terms in the PPM. What is the fund tenure? 5 years, closed-ended. Is this suitable for income-seeking investors? No. Early-stage venture funds do not pay regular income and carry a high risk of loss; they suit long-horizon investors only. Related reading Morphosis Venture Capital Fund I: Category I AIF for IP-Led B2B Tech Startups (/insights/morphosis-venture-capital-fund-i-aif) Equirus InnovateX Fund: Early-Stage Technology Investing With Founder-Led Support (/insights/equirus-innovatex-fund-aif) Category I AIF: Investing in India's Next Generation of Businesses and Infrastructure (/insights/category-i-aif-guide) Alternative Investment Funds (AIF): The New Asset Class (/insights/aif-india) AIF investing with Money n Wealth (/products/aif) More Insights on PMS, AIFs and wealth management (/insights) Sources and official references Rockstud Capital: Investment Fund II (https://www.rockstudcap.com/angel-funds) Rockstud Capital (https://rockstudcap.com/) Business Standard: Rockstud Capital announces ₹300 crore fund (https://www.business-standard.com/article/pf/asset-management-firm-rockstud-capital-announces-launch-of-rs-300-cr-fund-123031400824_1.html) SEBI: registered Alternative Investment Funds (https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=16) Securities and Exchange Board of India (SEBI) (https://www.sebi.gov.in/) Disclaimer This article is for information and educational purposes only. It is not investment, tax or legal advice, and it is not an offer, solicitation or recommendation to invest in Rockstud Capital Investment Fund II or any other security. Units of Alternative Investment Funds are offered only by private placement to eligible investors under the scheme's Private Placement Memorandum. AIFs are not guaranteed or assured-return products; they carry market, credit, liquidity, valuation, concentration and manager risk, and investors can lose part or all of their capital. Past performance of the manager or any of its earlier funds does not indicate future results. Fund details are taken from manager disclosures and public sources believed to be reliable as of the date of writing and may change. Please read the PPM and all scheme documents carefully, and consult your own financial and tax advisors before investing. Money n Wealth is a brand of Predics Fintech Services Pvt Ltd, an AMFI-registered mutual fund distributor (ARN-121995) and APMI-registered PMS distributor (APRN07444), and may earn distribution commission on investments made through it.
