Blue Ashva Capital announces the initial closing of its SME-focused fund

India and Singapore-based Blue Ashva Capital, founded by a former banker, Satya Bansal, announced the initial closing of its small and medium enterprise (SME) and startup fund. The fund proposes to raise a sum of Rs 400 crore with a greenshoe option of Rs 200 crore. It has exercised a part of the greenshoe option at the initial close.

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The investors include high net worth individuals and family offices. 

Commenting on the launch of the fund, Satya told SMBStory, “Most of the funds initially target the startup space but we realised that there is something beyond the startup as well. Most of the SMEs fall under startups only but they don’t get the backing of quality capital.” 

The sector-agnostic investment firm is looking at investing in startups and SMEs that hold growth potential and the possibility of an exit can be worked out, he said. This fund will be India-focused. However, Satya added that the investment firm will be launching another fund that will look at making global investments. The ticket size of the investments will be within the seed to Series A funding rounds. 

India’s startup ecosystem was being looked upon with great expectations. Moreover, SMEs and MSMEs, which contribute almost 30 percent to India’s GDP, are considered as the backbone of the economy. With COVID-19, both startups and SMEs are confronted with significant predicaments that have challenged their very survival. 

“SMEs and startups play a key role in fostering entrepreneurship and generating large-scale livelihood opportunities. However, with so much gloom and doom around, most of these businesses are currently going through challenging times. There is a need now, more than ever, to support passionate founders with optimistic capital, and investors who are willing to bet on the long term. Our fund is committed to nurturing profitable and sustainable SMEs and startups for a better India.” says Satya.

Satya Bansal, prior to starting the venture capital fund, worked with UK-headquartered Barclays Private Bank for more than a decade, and was also a founding member of the ICICI Direct team.