Planify Venture X Fund Closes ₹100 Cr Commitment, marking a Significant Milestone for its SME-Focused AIF Fund.

Planify Venture X Fund Closes ₹100 Cr Commitment, marking a Significant Milestone for its SME-Focused AIF Fund.

Planify is proud to announce that its VentureX AIF Category I, an SME-focused Alternative Investment Fund (AIF), has reached a milestone of ₹100 Cr in commitments within a month of its launch. This achievement underscores the growing investor confidence in the potential of SME-focused investment opportunities and the increasing recognition of high growth and attractive returns within this sector.

VentureX Fund, launched with a vision to unlock the untapped potential within the SME sector, has been designed to provide robust returns by investing in high-growth MSME companies. The fund's strategy identifies and nurtures businesses with strong fundamentals, scalable models, and a clear path to long-term value creation.

The VentureX Fund is designed to focus on Small and Medium Enterprises (SMEs), a segment often overlooked in traditional investment avenues. It targets SMEs that are either approaching listing or are already listed on the Nifty SME Emerge or BSE Small Index, presenting a distinct opportunity for early-stage investment in high-growth companies.
Budget 2025: A Boost for SMEs

The Indian government has been taking significant steps to empower the SME sector, as reflected in Budget 2025. Key initiatives include increasing collateral-free credit limits from ₹5 crore to ₹10 crore and doubling the turnover and investment thresholds across SME categories. Investments have been increased by 2.5 times, from ₹50 crore to ₹125 crore.

Government-backed subsidies and incentives are further enhancing the SME ecosystem. With these structural reforms, SME investments are emerging as a game-changing opportunity, attracting increasing interest from institutional and individual investors.

Commenting on this milestone, Maneesh Nath, the worldwide ranked No.1 Fund Manager across 50,000 AIFs from the Preqin database and the first fund manager at VentureX, said, “We are thrilled to witness the overwhelming response to the VentureX Fund. Given the strong demand for SME investments, "Astute investors are adept at decoding the Indian budget, recognizing the opportunities it presents for SME companies. They understand that through the VentureX Fund, they can secure better allocations in these SMEs. By entrusting us with the due diligence and valuation processes, these discerning investors choose the VentureX Fund to ensure they invest in companies that have passed our rigorous evaluation framework, allowing them to enter the right valuations."

He also emphasized the outperformance of SMEs and highlighted the SME's potential - SMEs have consistently delivered outstanding returns, with a 61% CAGR, surpassing the 28% CAGR of Nifty Small Cap and the 20% CAGR of Nifty 50 in the last 5 years.

You might be wondering about the next steps for VentureX. In response to the overwhelming demand for SME investments, we plan to expand our fund size by an additional ₹250 crore, complemented by a green shoe option of ₹250 crore. This strategic move aims to provide enhanced access to high-potential SMEs, ensuring diversified and robust investment opportunities.

So, how will we utilize these funds? The capital raised will be strategically allocated to identify and nurture SMEs with strong fundamentals, scalable business models, and clear paths to long-term value creation. By investing in these high-growth enterprises, VentureX aims to unlock their untapped potential, facilitating their growth trajectories and delivering substantial returns to our investors.

SMEs: The Backbone of India's Economy

SMEs contribute 30% to India’s GDP and employ over 110 million people. Infusing capital through AIFs helps in capability growth and expansion, technology adoption, and operational scalability.

The SME sector has also demonstrated remarkable performance in the public markets. In 2024 there were 239 SME IPOs, with returns approaching 135%, reflecting the robust investor confidence in this segment. This trend underscores the significant opportunities within the SME space and the potential for substantial returns for investors. The sector’s strong performance and continued government support have made it a compelling segment for investment.

Rajesh Singla, CEO and second fund Manager of VentureX fund,  highlighted the often-overlooked success stories within the SME ecosystem, stating, “SMEs are usually in the news for the wrong reasons—incidents of financial mismanagement or compliance issues by a few players tend to dominate headlines. However, the real story is different. Companies with strong business models and scalable operations are creating immense value.

For instance, Infosys went public in 1994 with a valuation of ₹150 crore. Today, its market capitalization stands at over ₹7.65 lakh crore, proving that SMEs can grow into industry giants when given the proper support.”

VentureX Fund: Why Focus on the SME Sector

The decision to concentrate on the SME sector stems from its critical role in India's economic landscape. As highlighted, there is significant growth and contribution in the SME space.  Despite their significance, many SMEs face challenges accessing capital and resources necessary for expansion. VentureX addresses this gap by providing tailored financial support, enabling these enterprises to scale operations, adopt advanced technologies, and enhance their market competitiveness.

Impressive SME IPO Performance

Third and last but not least, Ishima Singla, CIO and Third Fund Manager at VentureX, emphasized the outperformance of SMEs and highlighted the SME's potential - “SMEs have great potential to create enormous wealth for its shareholders on account of significant expansion on revenue and earnings base. SMEs can grow much more rapidly than large caps, which is underscored by excellent performance over the past few years.

This fund bridges the gap for investors seeking high-growth opportunities in a sector poised for exponential transformation. SMEs have consistently delivered outstanding returns, outperforming benchmarks 4 times compared to small caps and 8 times compared to the Nifty50 over the last five years.”

The fund aims to identify and invest in SMEs with strong growth potential, enabling investors to participate as anchor investors during IPOs, a strategy that has historically delivered higher returns.

This strong performance underscores the lucrative potential of SME investments, making them an attractive avenue for high-net-worth individuals (HNIs) and savvy investors.

The success of the Venture X Fund comes at a time when the Indian AIF industry is experiencing unprecedented growth. According to recent data, the  AIF sector has grown at a compound annual growth rate (CAGR) of ~83% over the past five years, driven by increasing investor appetite for alternative assets. SME-focused funds, in particular, are gaining traction as investors seek to diversify their portfolios and tap into the high-growth potential of the mid-market segment.

The success of VentureX Fund mirrors a broader trend of AIFs exploring SME-focused IPOs driven by high returns and government support. Commenting on the milestone, Mr. Rajesh Singla, Founder & CEO of Planify, said, “The VentureX Fund’s rapid success is a testament to the immense potential of India’s SME sector. Crossing the ₹100 crore mark is a proud moment for us, but it’s just the beginning. We remain committed to supporting India’s brightest entrepreneurs and building a future where innovation thrives.”

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