Planify's VentureX Fund secures Rs 100 Cr in commitment
VentureX Fund was launched on January 1 this year with an aim to unlock the untapped potential within the SME sector.
Financial institution Planify announced on Sunday that VentureX Fund, an SME-focused Alternative Investment Fund (AIF), secured Rs 100 crore in commitments within months of its launch.
This achievement suggests the growing investor confidence in the potential of SME-focused investment opportunities and the increasing recognition of high growth and attractive returns within this sector.
VentureX Fund was launched on January 1, 2025 with an aim to unlock the untapped potential within the SME sector. It has been designed to provide robust returns by investing in high-growth MSME companies.
The fund's strategy identifies and nurtures businesses with strong fundamentals, scalable models, and a clear path to long-term value creation.
The VentureX Fund is designed to focus on Small and Medium Enterprises (SMEs), a segment often overlooked in traditional investment avenues. It targets SMEs that are either approaching listing or are already listed on the Nifty SME Emerge or BSE Small Index, presenting an opportunity for early-stage investment in high-growth companies.
Talking about the next steps for VentureX, Rajesh Singla, CEO and second fund Manager of VentureX fund, said," we plan to expand our fund size by an additional Rs 250 crore, complemented by a green shoe option of Rs 250 crore".
This move aims to provide enhanced access to high-potential SMEs, ensuring diversified and robust investment opportunities.
Overall, SMEs contribute 30% to India's GDP and employ over 110 million people. Infusing capital through AIFs helps in capability growth and expansion, technology adoption, and operational scalability.
The SME sector has also demonstrated remarkable performance in the public markets. In 2024 there were 239 SME IPOs, with returns approaching 135% reflecting the robust investor confidence in this segment.
However, Singla highlighted that SMEs are usually in the news for the wrong reasons-- incidents of financial mismanagement or compliance issues by a few players tend to dominate headlines. However, the real story is different. Companies with strong business models and scalable operations are creating immense value.
On the decision to concentrate on the SME sector, Singla said this was due to the critical role played by the sector in the country's economic landscape.
"There is significant growth and contribution in the SME space. Despite their significance, many SMEs face challenges accessing capital and resources necessary for expansion. VentureX addresses this gap by providing tailored financial support, enabling these enterprises to scale operations, adopt advanced technologies, and enhance their market competitiveness," he added.
Maneesh Nath, the first fund manager at VentureX, also emphasized the outperformance of SMEs and highlighted the SME's potential. SMEs have consistently delivered outstanding returns, with a 61% compound annual growth rate (CAGR), surpassing the 28% CAGR of Nifty Small Cap and the 20% CAGR of Nifty 50 in the last 5 years.
Edited by Affirunisa Kankudti