Capitalize on High Growth Ventures
VentureX AIF Fund by Planify offers easy access to early-stage and growth-stage companies, enabling individual investors to secure fixed shares in SME IPOs and tap into high-growth opportunities.
SME - Your Hidden Alpha Advantage
Given the consistent outperformance, even a modest allocation to SME’s within a portfolio has the potential to significantly boost overall returns and push them towards superior, risk-adjusted performance.
Comparison of Absolute Gains
Analysis of both absolute returns and Compound Annual Growth Rates (CAGR) over a 6-year period, demonstrates a compelling trend: Small and Mid-sized Enterprises (SMEs) have consistently surpassed the performance of established benchmarks like the Nifty 50 and the Nifty Small Cap 100.
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Comparison of CAGR Gains
This superior performance translates into positive alpha, a key metric indicating an investment's ability to generate returns that exceed those of the broader market. In simpler terms, by investing in SMEs, shareholders have enjoyed significant returns that outperform the market average.
Small Giants-How SMEs are Crushing the Market
"It's not the big that eats the small – it's the fast that eats the slow." - Ishmael Khalidi
Largest Wealth Creators
Fastest Wealth Creators
Name | Listing Date | Listing Price(₹) | Current Price(₹) | Holding Period(Yrs) | Absolute Return | CAGR Return |
Aditya Vision Ltd | 12 Dec 2016 | 15 | 4,409 | 7.7 | 29,293% | 110% |
Insolation Energy Ltd | 10 Oct 2022 | 38 | 3,108 | 1.8 | 8,079% | 986% |
Waree Renewable Technologies Ltd | 09 Aug 2012 | 22 | 1,502 | 12.0 | 6,726% | 42% |
Suyog Telematics Ltd | 22 Jan 2022 | 25 | 1,455 | 10.6 | 5,719% | 47% |
Nintec Systems Ltd | 18 Apr 2016 | 10 | 506 | 8.3 | 4,964% | 60% |
SME-The power booster for India’s Growth
Investing in India's booming SME sector, fueled by government support and poised for explosive growth, could be a game-changer for your portfolio.
SME Contribution as a % of GDP
India's SME sector has been a powerhouse of progress for years, steadily contributing a significant 30% to the nation's GDP. Now, with the government's booster shot of pro-SME policies – easier loans, tax benefits– the future is even brighter!
SME Contribution as % share in export
As India races to become $ 7 trillion by 2030, SMEs are primed to be game-changers, delivering exceptional performance and helping India become a thriving export hub.
Government Initiatives Propel SMEs Toward
Future Growth Titans
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Improved Cashflow
Section 43B(h) ensures payment to SME suppliers within 45 days
Ease of Credit
₹ 5 lakh Cr through (ECLGS) ₹ 50,000 crore equity infusion through SME Self-Reliant India Fund
Policy Drive
Make in India, ODOP, PLI and other schemes to benefit SME growth
What's fueling this perfect storm for SMEs?
India is expected to cross the $5 trillion mark by 2026-27 and likely to remain the fastest growing large economy
Growing disposable income
Rising disposable income in India is leading to a surge in domestic consumption. This translates directly into increased sales and growth for SMEs.
Demographic dividend
India's young population is a massive consumer base, creating a ready market for SMEs. "China + 1" strategy: As companies look to diversify their supply chains beyond China, India presents a promising alternative, opening doors for Indian SMEs.
Untapped Export Potential
India's current export share falls well below the global average for large economies. This presents a lucrative trillion-dollar opportunity for SMEs to expand their reach and tap into new markets.
Investment Framework LMVT
This framework focuses on identifying SMEs with strong competitive advantages (moats), capable leadership, and a history of value creation, all at a reasonable price.
Leadership
History of Strong Execution
Demonstrated Business Acumen
Coupled with Entrepreneurial Spirit
High Promoter Holding
Relevant Experience and Track
Record of Management
Valuation/Value Drivers
Attractive Value Counters using PE, PEG & EV/EBITDA Framework
Margin of Safety in Investment
5 year average D/E < 1
Consistent Shareholder Wealth Creation
Moat
Presence of High Pricing Power
Product Differentiation having an edge over peers
Presence of High Entry Barriers / Licensees / Patents
Robust Business Model
Following Tailwinds
Positioned in high-growth sectors with government policy push
Focused on disruptive technologies, green energy and AI
Ready to scale in evolving markets
Beyond the Facade
A Forensic Approach
to SME ScreeningQualitative Financial-Snapshot Assessment
Too high goodwill or presence of revaluation reserves
Rising days of receivables, Inventory rising faster than profits
Excessive leverage and falling DSCR, ICR
Related party transactions
Large business-unrelated investments as a % of asset Contingent Liabilities
Quantitative Evaluation of Earnings Forecast
Revenue rising at a slower pace than profits
Discrepancy between Accrual and Cash Earnings
Capitalisation vs Expensing (R&D, interest cost etc)
Sharp decline in taxes
Frequent large Extraordinary/Miscellaneous Expenses
Overstatement of revenue using Non-Recurring income/Channel Stuffing
Corporate Governance Assessment
Abrupt frequent change in auditors
Qualified audit opinions
Sudden/Frequent changes in top management
Reduced disclosures/Non-Compliance with Regulator/Exchange
Board lacking Competence/Independence
Excessive auditor/management compensation
Promoter/Director Criminal History
Strategic Approach to Identify High-Potential SMEs
By combining a game-changing product analysis, risk mitigation strategies, and superior growth expectations, this approach selects high-potential SMEs poised to outperform.
Key Terms
Proposed name of the AIF and Scheme | Venture X Fund |
Proposed Size of the Fund | 500 Crores |
Size of the Green Shoe (Optional) | 500 Crores |
Tenure of the Fund | 500 Crores |
First Closing of the fund | 3 Months from Registration |
Final Closing of the fund | 3 Years from date of first close |
Money Call | 10 Lakhs/Qtr. (40 Lakhs/yr, 1 Cr in 2.5 years) |
Investor Commitment Period or Drawdown Period | Up to 3 Years from the date of final close |
Exit | Distribution Waterfall: When a company profit is booked from portfolio companies and needs to be distributed to all Limited Partners (LP) investors |
Redemption (post Exit Load) | Monthly, to be executed only in case of investors have given 100% commitment |
Fund Investment Theme | SME (Anchor Investment Placement & Secondary Investment) |
Proposed investment by Sponsor/ Investment | Close Ended, Long-Only Cat-1, Alternative Investment Funds |
Class Destribution
Classes | E1 | E2 | E3 | E5 | E10 | E25 | E50 |
Minimum Capital | 1 Cr | 2 Cr | 3 Cr | 5 Cr | 10 Cr | 25 Cr | 50 Cr |
Management Fees | 2% | 2% | 2% | 1.75% | 1.50% | 1.25% | 1.00% |
Setup Fees | 0.05% | 0.25% | 0% | 0% | 0% | 0% | 0% |
Opex | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% |
Hurdle Rate | 12% | 12% | 12% | 12% | 12% | 12% | 12% |
Carry | 80% | 80% | 80% | 80% | 85% | 90% | 90% |
Catchup | 25% | 25% | 25% | 25% | 25% | 25% | 25% |
Fund Managers
Rajesh Singla
CEO
17+ years of Experience in Listed and Unlisted Market
Ishima Singla
Chief Investment Officer
Research Head
Ex- EY, 12+ years of Experience in Valuations & Risk Analysis
Maneesh Nath
Portfolio Manager
Ex Hedge Fund Manager of Passage to India Fund – Arcstone Capital (Ranked #1in category across 50,000+ AIFs*).
15+ years of experience in PMS
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