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Are you looking to invest in India’s high-performing SME AIF fund? We can help.

We invest in small companies to generate significant returns. Our expertise lies in spotting, evaluating & investing in promising small & medium enterprises. We focus on high-growth small-cap companies in the SME sector, where opportunities for earnings growth are unparalleled. By combining this with a disciplined approach to downside valuation and strong fundamentals, we aim to deliver sustainable and rewarding investment outcomes.

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About Us

About Us

At VentureX we believe that amidst countless market theories, one truth stands out clearly: the share price succeed its earnings and value creation potential. This principle, proven time and again through the history of stock markets, forms the foundation of our investment philosophy.
Our focus is on high-growth small-cap companies in the SME sector, where opportunities for earnings growth are unparalleled. By combining this with a disciplined approach to downside valuation and strong fundamentals, we aim to deliver sustainable and rewarding investment outcomes.

Backing Visionaries, Powering India’s Growth

At VentureX, we believe in backing the visionaries driving India’s growth story. As the nation moves toward becoming one of the top three global economies and a key contributor to world GDP, we focus on businesses that exemplify resilience, innovation, and entrepreneurial excellence.
Consider Waaree Renewable Technologies, which leveraged its SME listing to emerge as a renewable energy leader during India’s clean energy transition. Or Thejo Engineering, the first company to list on NSE Emerge, which utilized the platform to access capital and scale its innovative engineering solutions. These companies demonstrate the entrepreneurial grit and adaptability that align perfectly with our investment philosophy.

We prioritize businesses with strong execution history, a competitive moat, and clear growth visibility favoured by sectoral tailwinds. Our disciplined approach ensures a balance between downside protection and maximizing long-term returns. We invest not just in numbers but in narratives, drawing inspiration from the entrepreneurial spirit to emulate their vision. Embracing this perspective, we strive to invest with the foresight and determination that define entrepreneurial success.

Our Investment Approach

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WHAT TO BUY?

We start by building a strong thesis around a company using our proprietary LMVT framework. This framework allows us to identify businesses with solid fundamentals, scalable models, and a clear path to long-term value creation.

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WHEN TO BUY?

Timing is critical, and we strive to enter as early as possible, often at the pre-IPO or IPO stage. This ensures we position at the beginning of a company’s growth curve, maximizing the potential for returns as the business scales.

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WHEN TO EXIT?

Our exit strategy is guided by clear principles. We step away when growth expectations are not met, when valuations become unreasonably high, or when corporate governance issues arise. These criteria help us preserve capital and maintain discipline in our investment decisions.

How we approach

Unlisted Market

Opportunities

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Earnings Driven Approach

We invest in high-growth small-cap companies within the SME sector, focusing on their potential for substantial earnings growth. A disciplined evaluation of valuation and fundamentals ensures consistent and sustainable results.

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Sector Focus

We target emerging sectors with limited competition, prioritizing businesses capable of gaining market share during high-growth phases. Investments are made at attractive valuations compared to listed peers.

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Exit Visibility

Our approach emphasizes multiple clear exit opportunities, typically within 6 months to 5 years, ensuring optimized returns and portfolio liquidity.

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Leadership & Vision

We seek companies led by experienced management with proven track records, strong promoter backing, and strategic growth potential, ensuring alignment with long-term value creation goals.

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Due diligence

Every investment undergoes detailed analysis, focusing on competitive strengths, expansion plans, and financial health to ensure sustainable growth and resilience.

Fund Managers & Team

Research Team

Investment Banking

Operations

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Soumyadeep Chatterjee

Senior Financial Analyst

Qualification

B.Tech. (Hons). (Marine), CFA L2

Sector

EPC, Renewables, Energy, Real Estate

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Anmol Garg

Financial Analyst

Qualification

B.Com., CFA L3

Sector

Consumer Discretionary

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Manik Sharma

Financial Analyst

Qualification

B.Com. (Hons), CFA L2

Sector

Healthcare, Chemicals

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Vanshika Kataria

Financial Analyst

Qualification

B.Com. (Hons), CFA L1

Sector

Consumer Discretionary

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Nishchay Mehra

Senior Financial Analyst

Qualification

B.Tech. (Hons), (CSE)

Sector

Industrial, Tech

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Akshit Chauhan

Financial Analyst

Qualification

MBA (Finance)

Sector

Financial Services

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Ravinderbir Singh

Financial Analyst

Qualification

B.Com.

Sector

Banks & NBFCs

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Advaitya Chandhoke

Financial Analyst

Qualification

BBA (General)

Sector

Defence, Infrastructure

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Mahak Jain

Financial Analyst

Qualification

B.Com. (Hons.)

Sector

Metals, Consumer Staples

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.

Comparison of Absolute Gains
Comparison of CAGR Gains

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

1,026

SME
Listings

307

Migrated to
Mainboard (~30%)

128s

# of companies giving
more than 33.42% CAGR

3.57 Years

Average Time for
Migration to Mainboard

Largest Wealth Creators

Top 5 SME's by Absolute Gains

Fastest Wealth Creators

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%

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 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?

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.

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

This framework focuses on identifying SMEs with strong competitive advantages (moats), capable leadership, and a history of value creation, all at a reasonable price.

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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

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.

Investments in Unlisted Securities

Waaree Energies Ltd. Logo

Waaree Energies Ltd.

Investment Rationale

  • Tick Mark

    High-growth Emerging sector

  • Tick Mark

    Leader ex-China

  • Tick Mark

    Ability to Scale Up

  • Tick Mark

    Experienced Entrepreneur

  • Tick Mark

    Target Backward Integration

  • Tick Mark

    Focus on Exports

National Stock Exchange Logo

National Stock Exchange

Investment Rationale

  • Tick Mark

    Market Leader

  • Tick Mark

    Increase in Active User Base

  • Tick Mark

    Under Penetration of the Capital Market

  • Tick Mark

    Focus on Revenue Diversification

Nayara Energy Ltd Logo

Nayara Energy Ltd

Investment Rationale

  • Tick Mark

    Dominant Market Share

  • Tick Mark

    Integrated Business Model

  • Tick Mark

    Macro-driven Profit Surge

  • Tick Mark

    Robust Parental Backing

Quadrant FutureTek Ltd Logo

Quadrant FutureTek Ltd

Investment Rationale

  • Tick Mark

    High Growth Sector

  • Tick Mark

    Experienced Entrepreneur

  • Tick Mark

    Government Support (Kavach)

  • Tick Mark

    Strong Order Book

Hindusthan Engineering & Industries Ltd Logo

Hindusthan Engineering & Industries Ltd

Investment Rationale

  • Tick Mark

    Rapidly Growing Market

  • Tick Mark

    Investments in Mass Transit Systems

  • Tick Mark

    Focus on exports

  • Tick Mark

    Strong Execution of Orders

Anand Rathi Wealth Ltd Logo

Anand Rathi Wealth Ltd

Investment Rationale

  • Tick Mark

    Recurring Revenue Dominance

  • Tick Mark

    In-House Research Expertise

  • Tick Mark

    High Customer Retention Rates

  • Tick Mark

    HNI-Centric Approach

  • Tick Mark

    Scalable Business Model

  • Tick Mark

    Well-Diversified Asset Mix

NNT Developers Pvt Ltd Logo

NNT Developers Pvt Ltd

Investment Rationale

  • Tick Mark

    Legacy Business

  • Tick Mark

    Robust Order Book

  • Tick Mark

    Policy Impetus

  • Tick Mark

    Dominance in Niche Sectoral Expertise

TBI Corn Ltd Logo

TBI Corn Ltd

Investment Rationale

  • Tick Mark

    Health-Conscious Demand

  • Tick Mark

    Increased Production Capacity

  • Tick Mark

    Diverse Product Portfolio

  • Tick Mark

    Efficient Working Capital Use

Mohan Meakin Ltd Logo

Mohan Meakin Ltd

Investment Rationale

  • Tick Mark

    Trusted Brand

  • Tick Mark

    Self-Funded Expansion

  • Tick Mark

    Beverage Diversification

  • Tick Mark

    Operational Excellence

Orbis Financial Corporation Logo

Orbis Financial Corporation

Investment Rationale

  • Tick Mark

    Specialized Security Services

  • Tick Mark

    Capital-Backed Growth

  • Tick Mark

    Strong Expansion of Assets under Custody 

  • Tick Mark

    Reasonable Valuation

Ecosurepulpmolding  Logo

Ecosurepulpmolding 

Investment Rationale

  • Tick Mark

    Eco-friendly sector 

  • Tick Mark

    Focusing on Expansion 

  • Tick Mark

    Investments in Sustainability and Safety 

  • Tick Mark

    Sizeable Order Book

Deepak Houseware Logo

Deepak Houseware

Investment Rationale

  • Tick Mark

    Rapidly Emerging Sector

  • Tick Mark

    Ability to rapidly scale up

  • Tick Mark

    Policy Push (PLI Scheme)

  • Tick Mark

    Strategic Partnerships

Madhur Iron and Steel Logo

Madhur Iron and Steel

Investment Rationale

  • Tick Mark

    Impressive Growth Trajectory

  • Tick Mark

    Strategic Client Base

  • Tick Mark

    Operational Efficiency

  • Tick Mark

    Capacity Expansion Leadership

JSR Dynamics Pvt. Ltd. Logo

JSR Dynamics Pvt. Ltd.

Investment Rationale

  • Tick Mark

    Sizeable Order Book

  • Tick Mark

    Highly Experienced Leadership

  • Tick Mark

    Niche Industry

  • Tick Mark

    Prestigious Clientele

Pace Digitek Pvt. Ltd. Logo

Pace Digitek Pvt. Ltd.

Investment Rationale

  • Tick Mark

    Explosive Growth

  • Tick Mark

    Robust Margins

  • Tick Mark

    Strategic Leadership

  • Tick Mark

    IPO Upside

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 Distribution

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%

Distribution and Returns to Unit Holders

Picture this:

You start with an investment of ₹1,000 crore and it doubles to ₹2,000 crore in just 1 year. Exciting, right? Let’s break it down step by step and analyze the returns for unit holders.

Particular

Investor

Investment Management

Towards 100% repayment of capital contribution for unit holders

1000

Toward hurdle rate (12%) on capital invested

120

Towards catch up rate on capital invested (25%)

30

Allocation of distribution proceeds in excess of capital contributed hurdle rate and catch-up to unit holders of each class (carry)

680170

Total distribution being made to unit holders excluding capital

800%200%

Total distribution being made to unit holders

1800

Net Absolute Returns in 5 years

80

CAGR Returns

80%

Now, picture the same ₹1,000 crore multiplying 5x to become an impressive ₹5,000 crore in 5 years. What does this mean for investors? Let’s dive into the distribution and understand the net gains.

Particular

Investor

Investment Management

Towards 100% repayment of capital contribution for unit holders

1000-

Toward hurdle rate (12%) on capital invested

762-

Towards catch up rate on capital invested (25%)

-191

Allocation of distribution proceeds in excess of capital contributed hurdle rate and catch-up to unit holders of each class (carry)

2438609

Total distribution being made to unit holders excluding capital

3200 (80%)800 (20%)

Total distribution being made to unit holders

4200-

Net Absolute Returns in 5 years

3200-

CAGR Returns

33%-

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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.