VentureX Fund

What They Buy

VentureX constructs each investment thesis through deep research using its LMVT framework. The team targets businesses with strong fundamentals, scalable models, and a clear path to long-term value creation. This approach ensures that every portfolio company aligns with the fund’s philosophy of sustainable earnings-driven growth.

When They Buy

VentureX believes timing is crucial. The fund typically invests at the pre-IPO or IPO stage, placing capital at the inflection point of a company’s growth journey. By entering early, VentureX aims to maximise upside potential as these businesses scale and mature in the public market.

When They Exit

Exit decisions at VentureX are guided by clear and rational principles. The fund exits positions where growth expectations are not met, valuations become excessive, or governance concerns emerge. This disciplined exit strategy helps protect investor capital while reinforcing long-term portfolio resilience.

Why SMEs?

• SMEs contribute 30% to India’s GDP
• Enabled by policies like Section 43B(h) and ECLGS
• Supported by “Make in India,” PLI, and other schemes
• Positioned to benefit from India’s $7 trillion GDP goal by 2030
• SMEs offer superior CAGR and alpha generation over benchmarks like Nifty 50

At the core of VentureX Fund’s selection philosophy lies the LMVT framework—a structured and multi-dimensional approach to identifying scalable, high-growth SME investment opportunities. The framework integrates four key pillars:

1. Leadership

VentureX invests in companies led by experienced and visionary management teams. Key leadership traits they focus on include:

• A history of strong execution
• Demonstrated business acumen and entrepreneurial drive
• High promoter holding
• Proven track record and relevant industry experience

2. Moat

To ensure long-term competitive advantage, VentureX looks for:

• Strong pricing power
• A product or service that acts as the company’s moat
• Economies of scale, licensing advantages, or patents
• A robust business model capable of disrupting the industry landscape

3. Valuation / Value Drivers

The fund targets businesses offering compelling value through:

• Attractive valuations using PE, PEG, and EV/EBITDA frameworks
• Strong margin of safety
• Financial discipline with a 5-year average debt-to-equity ratio of less than 1
• A consistent record of shareholder wealth creation

4. Following Tailwinds

VentureX positions its portfolio in sectors benefiting from macro and policy-led momentum:

• High-growth industries with government push (e.g., PLI, Make in India)
• Disruptive sectors including green energy, AI, and digital innovation
• Markets ready for scale, driven by demographic and consumption trends
  

Strategic Approach to Identify High-Potential SMEs

• High Growth: Targets companies with game-changing products and strong demand-supply gaps.
• Emerging Leaders: Focuses on sectors with tailwinds and businesses with disruptive moats.
• Corporate Governance: Uses forensic checks to uncover and mitigate governance risks.
• Earnings Expectation: Selects firms with >40% PAT growth, low debt, and high ROE/ROCE.
  

Past Performance by Planify

Key Results from Planify’s SME & Pre-IPO Investments (₹0.1 Cr per company):

• Anand Rathi Wealth: 1351% return in 5.3 years | CAGR: 66%
• Orbis Financial Corp: 1097% in 4.5 years | CAGR: 75%
• TATA Technologies: 1011% in 4.4 years | CAGR: 74%
• NSE: 899% in 5.9 years | CAGR: 48%
• Chennai Super Kings: 732% in 5.9 years | CAGR: 43%
• LAVA: 700% in just 1.4 years | CAGR: 364%
• Sterlite Power: 650% in 3.1 years | CAGR: 93%
• Reliance Retail: 475% in 2.3 years | CAGR: 112%
• Mohan Meakin: 416% in 6.2 years | CAGR: 30%
• Nazara Technologies: 400% in 2.7 years | CAGR: 83%
• Care Health Insurance: 400% in 2.4 years | CAGR: 93%
• Nayara Energy: 333% in 2.5 years | CAGR: 80%
• Paytm: 289% in 1.6 years | CAGR: 129%
• Five Star Business Finance: 282% in 5.1 years | CAGR: 30%
• VCI Chemicals: 267% in 2.1 years | CAGR: 85%
• Deepak Houseware & Toys: 255% in 3.2 years | CAGR: 49%
• Barbeque Nation: 233% in 2.5 years | CAGR: 63%
• Waaree Energies: 229% in 1.6 years | CAGR: 115%