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Nurturing Growth: The Evolving Role Of AIFs And VCs In India’s SME Landscape

Inc42Inc42 · 9m
Nurturing Growth: The Evolving Role Of AIFs And VCs In India’s SME Landscape

A notable shift is occurring in India's startup ecosystem, as profitable startups are now considering the SME exchange as a viable platform for raising capital. With SMEs contributing around 30% to India's GDP and employing over 120 million individuals, their importance in the economy is undeniable. Traditional venture capitalists (VCs) and SME-focused Alternative Investment Funds (AIFs) are also exploring the SME exchange for investments, recognizing its potential for growth and visibility. The SME Exchange in India has experienced substantial growth, with over 800 companies launching IPOs and about 40% graduating to the mainboard exchange. This trend highlights a growing confidence in the SME market's potential and the maturity of the investment landscape in India.

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