Kyro Capital Launches ₹100 Cr Pre-IPO Fund for Growth

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. The fund, named Kyro India Opportunities Fund – I, aims to invest in profitable Indian companies that are strategically positioned for public listings within the next 24 to 36 months, targeting an internal rate of return (IRR) of 35%.

The firm is working towards the fund’s first close by July 2026, with the final close anticipated before June of the following year. The fund has a planned tenure of five years, with an option for a two-year extension. The minimum investment commitment for limited partners (LPs) is set at ₹1 Cr, adhering to AIF regulations. The fund includes a hurdle rate of 10% per annum and a sponsor commitment of ₹2.5 Cr.

Aman Maheshwari, founder and managing director of Kyro Capital, indicated that discussions for commitments are underway with high-net-worth individuals (HNIs), promoters of companies previously advised by the firm, and select European family offices. The fund will concentrate on growth-stage companies in sectors such as manufacturing, defense supply chains, electrical equipment, energy storage systems, and the broader power ecosystem, with a particular interest in opportunities across the power value chain, including generation, transmission, and related infrastructure.

While energy, power, advanced manufacturing, and consumer businesses are key focus areas, Kyro Capital remains open to evaluating opportunities across other sectors that align with the fund’s investment criteria. The fund also reserves the right to participate in secondary transactions, acquiring shares from existing investors prior to a company’s public market debut.

Established in 2024, Kyro Capital has operated as an investment banking and transaction advisory firm, assisting growth-stage companies with capital raising, M&A, and strategic transactions. This fund launch signifies the firm’s expansion into asset management. Kyro Capital also has plans to broaden its India Opportunities platform with future funds and is exploring investment prospects in overseas markets including South Korea, Taiwan, and Germany, with a focus on semiconductors, precision manufacturing, and energy transition sectors.

The launch occurs amid a surge in investor interest in India’s manufacturing and deeptech startups. Recent months have seen the establishment of dedicated investment vehicles for sectors like aerospace, defense, semiconductors, industrial automation, and energy transition. Notably, venture capital firm Capital-A recently announced the first close of its second fund at ₹160 Cr, targeting similar sectors. Funding activity in the segment has also been robust, with notable investments in battery technology startup e-TRNL Energy and spacetech firm Bellatrix Aerospace.