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 CAGR Gains *
Comparison of Absolute Gains *
Nifty50
Nifty smallcap 100
Nifty SME Emerge
BSE SME index has generated a 68.3 Cr. Absolute return over the past five years.
Lowest Return
2.1%
Gold
Highest Return
21.9%
Alpha VentureX
Average Return
13.2%
Across all
Indices / Funds
10
Compared
Performance Across Major Indices & Funds
Return (%)
↑ 1 Month performance vs major benchmarks
April 2026 Return*
The Nifty 50 returned 6.6% in a month. Alpha VentureX SME Fund returned 21.9% That gap is what early-stage SME access looks like.
Our Investment Framework
Every investment is evaluated through our proprietary LMVT methodology, combining qualitative insights with rigorous financial analysis.
Leadership
History of Strong Execution
Demonstrated Business Acumen coupled with Entrepreneurial Spirit
High Promoter Holding
Relevant Experience and Track Record of Management
Moat
Presence of High Pricing Power
Product as the 'Moat'
Economies of Scale, Licenses, and Patents
Robust Business Model, Industry Landscape Disruptor
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
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
Market Cap – wise Company Breakdown
India's next multibaggers may already be listed on the SME exchange
Large Cap
> 10,00,000 Cr
Mid cap
> 1,00,000 Cr
Small cap
> 25,000 Cr
Micro Cap
> 5,000 Cr
SME
0–1,000 Cr
Government Initiatives Propel SMEs
Toward Future Growth Titans
For us, MSME means- Maximum Support to Micro
Small and Medium Enterprises
01
Improved Casflow
Section 43B(h) ensures payment to SME suppliers within 45 days
02
Ease of Credit
₹ 5 lakh Cr through (ECLGS) ₹ 50,000 crore equity infusion through SME Self-Reliant India Fund
03
Policy Drive
Make in India, ODOP, PLI and other schemes to benefit SME growth
A disciplined
7-year Investment Timeline
Every fund follows a structured journey across three distinct phases — modelled on real market cycles spanning the last 15 years.
Mar 2025
0
Mar 2026
1
Mar 2027
2
Sep 2027
Mar 2028
3
Mar 2029
4
Mar 2030
5
Mar 2031
6
Mar 2032
7
PHASE 1
2.5 Years
Drawdown Period
Capital deployment & portfolio construction
PHASE 2
2.5 Years
Growth Period
Active management & value compounding
PHASE 3
2 Years
Profit Booking
Systematic harvesting & distribution
Mar 2025
0
Mar 2026
1
Mar 2027
2
Sep 2027
Mar 2028
3
Mar 2029
4
Mar 2030
5
Mar 2031
6
Mar 2032
7
PHASE 1
2.5 Years
Drawdown Period
Capital deployment & portfolio construction
PHASE 2
2.5 Years
Growth Period
Active management & value compounding
PHASE 3
2 Years
Profit Booking
Systematic harvesting & distribution
Validated Across Past Market Cycle
2009–2016
Market Cycle
Accumulation
Phase
2009–2012
Growth
2012–2014
Profit
Booking
2014–2016
2017–2024
Market Cycle
Accumulation
Phase
2017–2020
Growth
2020–2022
Profit
Booking
2022–2024
Our Investment Approach
Every fund follows a structured journey across three distinct phases — modelled on real market cycles spanning the last 15 years.
01
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.
02
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 ourselves at the beginning of a company's growth curve, maximizing the potential for returns as the business scales.
03
WHAT & HOW MUCH TO BUY?
Our investment process begins with a rigorous thesis-building exercise, anchored in our proprietary LMVT framework. This framework enables us to screen and evaluate SMEs on parameters such as financial strength, scalability of operations, governance standards, and industry positioning.
04
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.
Seamless Digital Onboarding
Our structured onboarding process guides you through documentation, verification,
approvals, and fund commitment while ensuring complete transparency at every step.
STEP 1
Investor Documentation
Upload required documents.
STEP 2
KYC- Kfintech
Verify identity and compliance details.
STEP 3
Investor
Digitally sign the contribution agreement.
STEP 4
VentureX Team
Documents reviewed by the VentureX team.
STEP 5
Trustee
Trustee validates and approves onboarding.
STEP 6
KYC Completion
Final KYC checks completed.
STEP 7
Money Call
Receive funding instructions and invest.
STEP 1
Investor Documentation
Upload required documents.
STEP 2
KYC- Kfintech
Verify identity and compliance details.
STEP 3
Investor
Digitally sign the contribution agreement.
STEP 4
VentureX Team
Documents reviewed by the VentureX team.
STEP 5
Trustee
Trustee validates and approves onboarding.
STEP 6
KYC Completion
Final KYC checks completed.
STEP 7
Money Call
Receive funding instructions and invest.
A Forensic Approach to SME Screening
Going beyond financials — uncovering hidden risks through qualitative checks and quantitative analysis to ensure investor protection and maximise returns.
Legal
Governance & Compliance
Financial
Accounting Forensics
On-Ground
Business Reality Check
Technology
Competitive Moat Validation
1. Legal, Governance & Compliance Checks
Litigation status & regulatory notices
Corporate governance strength (board, audit, disclosures)
Auditor track record & auditor rotation history
Promoter integrity, credit history & pledge checks
ESG & statutory compliance review
Key-man & succession depth
2. Financial & Accounting Forensics
QUANTITATIVE
Revenue growth < profit growth
Operating cash flow < accounting profits
Expense capitalization to inflate earnings
Sharp fall in tax rate without justification
Extraordinary items / misc. expenses recurring
Non-recurring income / channel stuffing signals
QUALITATIVE
Goodwill/revaluation reserves unusually high
Receivables & inventory rising faster than revenue
High leverage, falling DSCR/ICR
Large related-party transactions
Non-core investments; contingent liabilities
3. On-Ground & Business Reality Check
Scuttlebutt: customer, vendor, employee feedback
Factory/office visits every 6–9 months
Capacity utilization & inventory verification
Market validation — demand, pricing power, competition
Promoter reputation & background checks
Channel checks for revenue authenticity
4. Technology & Competitive Moat Validation
Patents/IP ownership & defensibility
In-house R&D capability & spend discipline
Order book, LOIs & execution visibility
Tech adoption & automation level
Scalability & entry-barrier assessment
Investment Committee
Our success is driven by an exceptional team of industry experts, analysts, and investment professionals dedicated to delivering superior results.
Rajesh Singla
Fund Manager & CEO
Ishima Bansal
Chief Investment Officer & Fund Manager
Maneesh Nath
Portfolio Manager & Fund Manager
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.
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
1,496
SME Listings
354
Migrated to Mainboard (24.6%)
317
# of companies giving more than 30% CAGR
37,796
Total money raised (in crs.)
Top 5 SMEs by Absolute Gains (2012–23)
Name | Listing Date | Issue Price (₹)* | Current Price (₹) | Holding Period (Years) | Absolute Returns | CAGR Returns |
|---|---|---|---|---|---|---|
Nintec Systems Ltd. | 18 Apr 2016 | 10 | 825 | 10.2 | 82x | 54% |
Kwality Pharmaceuticals Ltd. | 18 Jul 2016 | 45 | 2802 | 10 | 61x | 51% |
Knowledge Marine & Engineering Works Ltd. | 22 Mar 2021 | 38 | 2292 | 5.3 | 59x | 118% |
Concord Control Systems Ltd. | 10 Oct 2022 | 55 | 2726 | 3.7 | 49x | 185% |
Advait Infratech Ltd. | 28 Sep 2020 | 51 | 2300 | 5.8 | 44x | 94% |
Investments in Unlisted Securities
Our success is driven by an exceptional team of industry experts, analysts, and investment professionals dedicated to delivering superior results.
JD Cables
Investment Rationale
ISO-Certified, Scalable Manufacturing Setup
Government-Driven Demand and Market Penetration
Empanelled with Multiple State Electricity Boards
Diversified Client Base
MV Electro Systems Ltd.
Investment Rationale
Scalable, Capex-Efficient Infrastructure
Experienced Technical Leadership
Scalable, Capex-Efficient Infrastructure
Global Quality Certification
K V Toys India Ltd.
Investment Rationale
Asset-light model via partnerships
Government tailwinds and higher import duties
Own Indian Brand establishment with a diversified portfolio
BIS-compliant with multi-level distribution
Accent Microcell Ltd
Investment Rationale
Key MCC player in a global oligopolistic market
Strong fundamentals and disciplined capital allocation
Structural demand tailwind with supply constraints
Highly experienced, sharp and strong management
InfoBay AI Ltd
Investment Rationale
Build domain-specific datasets to boost accuracy & reduce hallucinations
Direct partnerships with tech giants like Microsoft and Google
End-to-end AI training: pre-training, SFT, and RLHF
Backed by marquee investors already on the cap table
Sarva Foam Industries Ltd
Investment Rationale
Dominant player with ~40% share in rebonded PU foam segment
Sharp margin expansion (~1% in FY23 to ~10% in FY25)
Industry-dominating clients with strong cash conversion cycle (~60 days)
Expanding global footprints, including the UK & Australia
Sky One Airways Pvt Ltd
Investment Rationale
No direct competition; Pawan Hans has filed for bankruptcy appeal
Operates 5 helicopters, including one of India's largest Mil Mi-172 helicopters
Expanding into offshore O&G (AW139) and VIP/state (H145)
Strategic PSU/OEM partnerships, trusted by VVIPs
Rajesh Power Services Ltd
Investment Rationale
₹3,326 Cr order book provides strong revenue visibility
400kV GIS entry unlocks PowerGrid & interstate opportunities
₹3,500 Cr pipeline strengthens future growth outlook
Beneficiary of India's ₹9 lakh Cr T&D capex by 2032
Di Aero Pvt Ltd
Investment Rationale
PAC-certified company, enabling direct MoD order negotiations
Robust order book of ₹667 Cr. ensuring long-term visibility
Combat-proven platforms,including Operation Sindoor (2025)
Belarusian founders; India ops led by Wg Cdr Rakesh Madhra (Retd.)
Key Terms
Our success is driven by an exceptional team of industry experts, analysts, and investment professionals dedicated to delivering superior results.
Term | Definition |
|---|---|
Name of the Fund/Scheme | VentureX Fund I |
Proposed Size of the Fund | 250 Crores |
Size of the Green Shoe (Optional) | 250 Crores |
Tenure of the Fund | 10 + 2 Years |
First Closing of the fund | February 28, 2025 |
Final Closing of the fund | 60 Months From the First Closing |
Investor Commitment Period or Drawdown Period | 10% of the commitment amount in every qtr for 10 quarters. |
Exit | Distribution Waterfall: When a company profit is booked from portfolio companies and needs to be distributed to all Contributors |
Sponsor Capital Commitment | 2.5% of Corpus or 5 Cr. whichever is lower |
Fund Investment Theme | SME (Anchor Investor in IPO, Pre-IPO of SME, listed SMEs from the Exchange) |
Proposed investment by Sponsor/ Investment | Close Ended, Long-Only Cat-1, Alternative Investment Fund |
Class Distribution
Our success is driven by an exceptional team of industry experts, analysts, and investment professionals dedicated to delivering superior results.
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 | 0.50% | 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% |
Investor's Share | 80% | 80% | 80% | 80% | 85% | 85% | 90% |
Profit Sharing (Carried Interest) | 20% | 20% | 20% | 20% | 15% | 15% | 10% |
Catchup | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
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 Manager |
|---|---|---|
Towards 100% repayment of capital contribution for unitholders | 100 | |
Towards hurdle rate (12%) on capital invested | 12 | |
Towards catch up on Hurdle Rate (25%) | 3 | |
Allocation of distribution proceeds in excess of capital contributed, hurdle rate and catch-up to unit holders of each class (Carry) | 68 | 17 |
Total distribution being made to unit holders of each class | 80 (80%) | 20 (20%) |
Total distribution being made to unit holders | 180 | |
Net Absolute Return in 1 Year | 80 | |
CAGR Returns | 80% | |
You start with an investment of ₹100 and it doubles to ₹200 in just 1 year. Exciting, right? Let’s break it down step by step and analyze the returns for unit holders.
Particular | Investor | Investment Manager |
|---|---|---|
Towards 100% repayment of capital contribution for unit holders | 1,000 | |
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) | 2,438 | 609 |
Total distribution being made to unit holders excluding capital | 3,200 (80%) | 800 (20%) |
Total distribution being made to unit holders | 4,200 | |
Net Absolute Returns in 5 years | 3,200 | |
CAGR Returns | 33% | |
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Registered Office Address: 1001, Block G1B, Pocket-1, Phase-2, Samriddhi Apartments, Dwarka Sector-18B, New Delhi-110078
Email: help@alphaamc.com • Phone: +91-93-1137-8001
Alpha Ventures Private Limited
(Formerly known as Planify WealthX Pvt Ltd)
Sponsor Name
Planify Venture LLP
Investment Manager
Fund Managers
VentureX Fund I (SME)
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