Planify’s VentureX Fund secures Rs 100 crore commitments

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Planify’s VentureX Fund, an SME-focused Alternative Investment Fund (AIF), has secured Rs 100 crore in commitments just three months after its launch. This milestone highlights growing investor confidence in the potential of small and medium enterprises (SMEs) and their high growth potential. The fund, launched on January 1, 2025, aims to invest in high-growth MSME companies with strong fundamentals and scalable business models. Its strategy includes targeting enterprises approaching listing or already listed on the Nifty SME Emerge or BSE Small Index. The fund’s success reflects the increasing recognition of SME investment opportunities, with plans to expand by an additional Rs 250 crore, alongside a green shoe option of another Rs 250 crore. Given SMEs contribute nearly 30% to India’s GDP and employ over 110 million people, VentureX Fund is set to play a crucial role in their growth and expansion.

1. Understanding VentureX Fund: Working Model, Revenue Model, and Founders

1.1 Working Model

VentureX Fund operates as an Alternative Investment Fund (AIF) focused on SMEs. It strategically invests in businesses that are either approaching listing or already listed on SME indices. The fund provides capital to help these enterprises scale, adopt technology, and become competitive in both domestic and global markets.

1.2 Revenue Model

The fund generates revenue through management fees and carried interest. Investors commit capital, which is then deployed into promising SME ventures. The returns generated through these investments are distributed among investors, with the fund managers earning a share of the profits.

1.3 Founders and Leadership

VentureX Fund is managed by Planify, a financial institution specializing in alternative investments. The fund’s leadership includes Rajesh Singla (CEO and second fund manager) and Maneesh Nath (first fund manager). Both bring extensive experience in investment management and SME financing.

2. Funding Background and Services Offered

2.1 Funding and Investment Strategy

The fund initially secured Rs 100 crore and plans to expand by an additional Rs 250 crore, with a green shoe option of another Rs 250 crore. It focuses on investing in high-growth MSMEs with strong business models, ensuring early-stage stakes in promising ventures.

2.2 Services Offered

• Equity investments in SMEs
• Strategic business guidance and mentorship
• Access to alternative funding sources
• Support for technological adoption and scalability

3. The Growing Importance of SME Investments

3.1 SMEs in India’s Economy

SMEs contribute 30% to India’s GDP and employ over 110 million people. However, they often struggle to access traditional financing. VentureX Fund bridges this gap by providing much-needed capital.

3.2 Performance of SME IPOs

In 2024, 239 SME IPOs were launched, delivering returns of about 135%. This trend indicates rising investor interest and confidence in the SME sector.

4. Expansion Plans and Future Growth

4.1 Next Steps for VentureX Fund

The fund aims to raise an additional Rs 250 crore, complemented by a green shoe option of another Rs 250 crore. This will enable it to expand its portfolio and enhance access to high-potential SMEs.

4.2 Broader Economic Impact

By investing in SMEs, VentureX Fund contributes to employment generation, technological advancement, and economic growth, positioning itself as a key player in India’s financial ecosystem.

5. Learning for Startups and Entrepreneurs

5.1 Key Takeaways

• Access to Alternative Funding: SMEs should explore AIFs like VentureX to secure capital.
• Investor Confidence in SMEs: Strong business fundamentals attract investment.
• Early-Stage Investment Opportunities: SMEs approaching listing can leverage funds like VentureX for growth.
• Strategic Business Scaling: Access to mentorship and financial backing enhances scalability.

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