Planify Launches VentureX Fund: A Pioneering SME-Focused Alternative Investment Fund (AIF)

With a total fund size of Rs 1,000 crore, the fund aims to unlock untapped opportunities within the SME sector

December 05, 2024 / 11:49 IST

Gurugram, 1 December 2024 – Planify, a leading financial institution committed to providing innovative investment solutions, has announced the launch of its VentureX Fund, a revolutionary investment opportunity designed to harness the immense growth potential of small and medium enterprises (SMEs).

The Planify VentureX Fund is built on a unique theme of identifying and investing in high-potential SMEs across diverse industries in emerging markets. With a total fund size of Rs 1,000 crore, the fund aims to unlock untapped opportunities within the SME sector, offering investors a chance to diversify their portfolios while achieving robust returns.

Key highlights of the VentureX Fund include:

Investment Model: Operates as an Alternative Investment Fund (AIF) under the venture fund route.
Minimum Investment: Rs 1 crore, with structured money calls allowing efficient capital deployment.
Capital Deployment Strategy: The fund will strategically deploy resources over 2.5 years, including:
- Acting as Anchor Investors in SME IPOs.
- Participating in Qualified Institutional Buyer (QIB) rounds.
- Acquiring stocks on secondary SME exchanges post-investment framework validation and due diligence.

The investment committee is led by experienced professionals, including Maneesh Nath, a Fund Manager with over 15 years of experience on Wall Street. Previously with Arcstone Capital, Maneesh managed the highly-ranked Passage to India fund, earning accolades for its performance in the Preqin Database.

Rajesh Singla, Founder & CEO of Planify, highlighted the fund’s potential:

“At Planify, we are passionate about driving innovation and supporting entrepreneurs. SMEs have consistently delivered outstanding returns, with a 79% CAGR compared to Nifty Small Cap's 56% and Nifty50's 20% in FY2024. This fund bridges the gap for investors seeking high-growth opportunities in a sector poised for exponential transformation.”

Why Planify VentureX Fund Stands Out

Addressing a significant challenge in venture capital – liquidity risks – the VentureX Fund focuses exclusively on listed SMEs, ensuring enhanced liquidity and confidence for investors. Unlike traditional VC funds, which often face delays from startup listing uncertainties, this fund provides flexibility and reassurance.

Empowering the SME Ecosystem and Investors

This initiative reaffirms Planify’s mission to empower investors while supporting innovative SMEs that drive economic growth. As accredited investors shift focus from conventional avenues like mutual funds and PMS, the VentureX Fund presents a compelling opportunity to participate in India’s SME-led growth narrative.