Holani Group Secures Rs 184 Crore for SME-Focused Venture Capital Fund

Holani Consultants, a Jaipur-based merchant banker and stockbroker, has successfully raised Rs 184 crore for its new SME-focused venture capital fund. The total target for the fund is Rs 300 crore, and it was launched in late April this year. With approval from the Securities and Exchange Board of India (SEBI) for its Alternate Investment Fund (AIF) earlier this year, Holani Group has now ventured into fund management and investment.

The new fund, according to Holani Group, includes a green shoe option that allows for an additional Rs 100 crore to be retained. Ashok Holani, Director of Holani Consultants, expressed optimism about the fund’s potential impact, stating, “With our sector-agnostic strategy, meticulous research and prudent risk management, we aim to create long-term value for our clients while fostering innovation, entrepreneurship and economic growth of India through our fund.”

The Holani Venture Capital Fund Category I AIF is managed and sponsored by Holani Capital Advisors LLP. It invites investment from various individuals and entities, including high net worth individuals, corporates, institutional investors, financial institutions, family offices, insurance companies, foreign investors, and other alternative investment funds.

Holani Consultants is known for offering services such as IPO management, business valuation consultancy, financial management and advisory, bank financing, stock broking, and other securities market-related advisory services. The company has an impressive track record, having supported valuations for over 100 private placement transactions and handling SME IPOs on the BSE SME and NSE Emerge platforms.

The new venture capital fund by Holani Group is among the few in India that primarily focus on the SME sector. This initiative comes in the wake of significant efforts by various institutions to support the SME segment. The MSME Ministry is currently running a Rs 50,000-crore Self-Reliant India fund managed by SBICAP Ventures (SVL), the private equity arm of the public lender State Bank of India (SBI), aimed at equity investment in SMEs.

Additionally, in March this year, the Small Industries Development Bank of India (SIDBI) launched a new $120 million Avaana Sustainability Fund (ASF) to invest in early-stage startups and MSMEs. This fund targets technology-led innovations that drive climate solutions and sustainability in India.