Getfive Funds has received approval from the Securities and Exchange Board of India (SEBI) to launch its second alternative investment fund (AIF), with a proposed corpus of ₹500 crore to invest in small and medium enterprises (SMEs), the company said on October 14.
The proposed Category I AIF, Getfive Opportunity Fund II, will target emerging companies across Tier 1, Tier 2 and Tier 3 markets in India. Its investment focus will span sectors such as manufacturing, defence, aerospace, deep-tech, healthcare, pharmaceuticals, financial services, agritech, logistics and renewable energy.
The new fund will build on Getfive’s first opportunity fund, which has a target size of ₹100 crore and has raised around ₹61 crore so far, according to the company.
Getfive said the second fund would follow a growth-investing strategy, evaluating companies based on their promoters, business fundamentals and industry prospects.
Shrikant Goyal, managing director of Getfive Funds, said investors in SME companies should assess business fundamentals, promoter track records, balance sheets, valuations and scalability rather than make investment decisions based on listing-day gains or market trends.
Goyal also said the company expects around 400 SME companies to list on the BSE SME and NSE Emerge platforms over the next three to four years. This is the company’s estimate.
Investing in SME stocks can carry significant risks, including lower liquidity, limited financial disclosures compared with larger listed companies and sharp price fluctuations. Investors need to assess a company’s financial position, valuation and business prospects before investing.
Getfive operates in merchant banking and alternative investment management, among other areas. Its first opportunity fund is registered as a Category I AIF under SEBI’s venture capital fund category.
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