A structural shift
India's 63 million MSMEs contribute nearly 30% of GDP, yet only a fraction have access to institutional equity. GST, digital payments and account-aggregator frameworks have dramatically improved the visibility of SME financials, lowering the cost of diligence for investors.
Where the opportunity lies
We see the strongest opportunity in businesses with ₹100–1,000 Cr revenue that have already proven product-market fit and now need capital for capacity, talent and governance — the transition from promoter-run to professionally-managed.
Risks we watch
Customer concentration, working-capital intensity and key-person dependence remain the most common risks. Our diligence framework is built around measuring and mitigating each of them before we commit capital.
Our view
The next decade will reward patient, partnership-oriented capital. Funds that combine local origination with institutional discipline are best positioned to compound alongside these businesses.
This article is for information only and does not constitute investment advice or an offer to invest.