SME Funds
Channeling growth capital into India's small and medium enterprises — the backbone of the nation's economy and engine of employment generation.
Definition & Purpose
SME Funds are Category I AIFs specifically mandated to invest in Small and Medium Enterprises (SMEs) as defined by the Ministry of MSME. These funds bridge the critical financing gap faced by viable SMEs that lack access to formal capital markets, providing equity and quasi-equity to businesses with ₹10–250 Crore in annual turnover.
Target
SME & MSME
Risk Profile
High
Min. Investment
₹1 Crore
Tenure
5–7 Years
The SME Opportunity
63M+ SMEs in India
India has over 63 million registered MSMEs contributing 30% of GDP and employing 110+ million people.
Valuation Arbitrage
SMEs trade at significant discounts to listed mid/large-caps, offering substantial re-rating potential upon scale and formalization.
Credit Gap
A ₹37 trillion credit gap exists in MSME financing — AIFs can fill a portion with patient, structured capital.
Government Tailwinds
PLI schemes, "Make in India" initiatives, and MSME formalization drive structural growth for investible SMEs.
Investment Criteria
Revenue
₹10–250 Cr
Annual turnover threshold
EBITDA
10%+
Minimum operating margin
Stake
20–49%
Minority equity positions
Invest in India's Growth Engine
Our SME investment team identifies high-quality businesses with strong fundamentals and management teams capable of delivering institutional returns.
Request SME Fund Details