Himalaya Wealth Managers has launched a new fund with a target corpus of Rs 250 crore ($26 million) and a greenshoe option of another Rs 250 crore, taking the potential total fund size to Rs 500 crore ($52 million).
The fund—the Himalaya SME Scheme-I—will invest in Indian SMEs and is targeting a gross IRR of over 20%, according to a media statement issued by the firm.
The fund will invest across sectors benefitting from India’s structural tailwinds, such as aerospace and defence, industrial automation, healthcare and life sciences, agri tech and food processing, electronics and semiconductors, renewable energy, and electric vehicles.
“India’s SMEs are entering a phase of rapid formalisation and scale. Yet, a significant equity risk capital gap continues to constrain the ability of high-potential enterprises to scale sustainably,” said Deena Mehta, General Partner and Investment Director at Himalaya Wealth Managers.
According to industry estimates, SMEs contribute around 30% to India’s GDP and account for a significant share of exports and employment. Even then, many growth-stage businesses continue to face limited access to long-term equity capital.
Himalaya Wealth Managers plans to tap this space by focusing on growth-stage SMEs. Beyond providing capital, it also plans to offer governance, strategic guidance, and operational support.
