Named Himalaya SME Scheme-I, the fund will invest in growth-stage SMEs across sectors such as aerospace and defence, healthcare and life sciences, industrial automation, electronics and semiconductors, renewable energy, electric vehicles, agri-tech and food processing.
The company said the fund aims to address the equity capital gap faced by high-growth SMEs in India and will provide capital along with governance, strategic guidance and operational support to portfolio companies.
According to the firm, the fund will focus on businesses with proven operating models and strong growth potential. It added that the scheme is targeting gross internal rate of return (IRR) of over 20% through disciplined investing, structured transactions and active value creation.
The fund is being led by Deena Mehta, Manohar Lal Vij, Asit C Mehta and Jatin Tehri, who together bring experience across equity and debt capital markets, SME financing, mergers and acquisitions, due diligence and corporate advisory services.
Commenting on the launch, Deena Mehta, General Partner and Investment Director at Himalaya Wealth Management Fund, said India’s SME sector is witnessing rapid formalisation and scale, but many enterprises continue to face constraints in accessing equity risk capital.
She said the fund aims to partner with niche market leaders with strong cash flow visibility, high switching costs and durable competitive advantages, while also helping them transition into institutionally governed businesses.
Himalaya Wealth Managers LLP is an India-focused investment management firm and acts as the investment manager for Himalaya SME Scheme-I.
