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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.

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Your Hidden Alpha Advantage

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.

Comparison of Absolute Gains
Comparison of CARG Gains

Comparison of CARG 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.

Top 5 SME's by Absolute Gains
Top 5 SME's by CAGR Gains

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%

The Power Booster for India's Growth

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 a % of GDP
SME Contribution as % share in export

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.

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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

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Ease of Credit

₹ 5 lakh Cr through (ECLGS) ₹ 50,000 crore equity infusion through SME Self-Reliant India Fund

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Policy Drive

Make in India, ODOP, PLI and other schemes to benefit SME growth

What's fueling this perfect storm for SMEs?

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.

Growing disposable income
Demographic dividend

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.

Untapped Export Potential

Investment Framework LMVT

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Leadership

  • History of Strong Execution

  • Demonstrated Business Acumen

  • Coupled with Entrepreneurial Spirit

  • High Promoter Holding

  • Relevant Experience and Track

  • Record of Management

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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

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Moat

  • Presence of High Pricing Power

  • Product Differentiation having an edge over peers

  • Presence of High Entry Barriers / Licensees / Patents

  • Robust Business Model

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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 Screening

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Qualitative 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

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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

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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

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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    Frequently Asked Questions

    There have been a few notable VC funds in India. These include: Planify VentureX Fund, Sequoia Capital India, Accel Partners, Matrix Partners India, Kalaari Capital and Nexus Venture Partners. These funds have been actively investing in promising startups across various sectors and have a strong presence in the Indian startup ecosystem.
    The role of venture capital is to provide funding, mentorship, and strategic guidance to startups, helping them grow and succeed in the market.
    The stages of venture capital include the seed stage, early stage (Series A and Series B), expansion stage, and later stage.
    The minimum investment in venture capital varies but typically ranges from tens of thousands to millions of dollars, depending on the fund.
    VC funding in India involves investing in Indian startups or early-stage companies to support their growth and expansion.
    VC firms are funded by institutional investors such as pension funds, endowments, foundations, and wealthy individuals.
    The three types of venture capital funds are seed-stage funds, early-stage funds, and later-stage funds, each focusing on different stages of a company's growth.
    VCs raise money from institutional investors, high-net-worth individuals, and corporations through fundraising efforts and pitch presentations.
    Investing in venture capital can offer high returns but involves high risk due to the uncertainty of startup success.
    A venture capital investment fund pools money from investors to invest in startups or early-stage companies, managed by professional fund managers.
    Venture capitalists invest in early-stage companies with high growth potential in exchange for equity ownership, aiming for substantial returns.