Gujarat Venture Fin launches fund for SMEs

Gujarat Venture Finance (GVFL) has launched a Rs 100 crore venture capital fund for small and medium enterprises (SMEs).

It will be a 10-year closed-ended fund with the objective of achieving long-term capital appreciation by making equity investment in companies at both the start-up and growth stages.

The fund will look at opportunities in sunrise areas such as healthcare and clinical research in addition to the engineering, ICT, auto, auto ancillaries and manufacturing sectors.

In manufacturing too, it will scout for start-ups in plastics and chemicals. It will invest in companies with up to Rs 50 crore turnover and will typically stay invested for 4-5 years.

Said Vishnu Varshney, chief executive officer, GVFL, "This is an all-India fund and we will be investing in new projects, expansion and diversification, management buyouts, product development, privatisation, etc. Unlike our other funds, we will be looking at investing in the growth stage of companies too."

He added, "We will continue to focus on the the knowledge industries, including ITeS, KPO and BPO, apart from engineering and non-conventional sources of energy. The fund will also look at start-ups in the healthcare and clinical research sectors."

Varshney said that the fund which has just been launched will look for investments from FIIs too.

"The US is bullish on India. We will also look at individual and institutional investors from West Asia."

He added that it would take about a year to close the fund.

Earlier, GVFL has invested in companies such as Neilsoft, eInfochips and Zicom.