Global startup investment bank JPIN and business advisory firm Mastermind Financial Services Pvt Ltd on Tuesday marked the first close of their maiden small and medium enterprises (SME)-focussed fund at Rs 40 crore (around $5 million).
Mastermind JPIN Capital Partners Fund, a collaboration between the two firms, has a target size of Rs 100 crore for the SME Growth Fund, with a greenshoe option of Rs 50 crore. The fund, registered as category I alternative investment fund (AIF), will focus on investing in SMEs in India.
“Our first closure is a testament of our investors’ confidence and we aim to close the remaining 60% in the next 3-6 months,” said Manish Ladage, founder and director, Mastermind.
The investors in the latest fund saw participation from family offices and high-net-worth individuals (HNIs) marking 40% subscription in the first close, double the target within a span of 6 months.
A sector-agnostic fund, it will target profitable and established businesses, which are experiencing hypergrowth within the SME sector. The fund aims to invest Rs 5 to 20 crores ( $0.6 - $2.5 million) in businesses that have a minimum turnover of Rs 40 crore, it said.
The fund is one of the two strategic funds launched by Mastermind JPIN Capital Partners Fund last year to boost investments in India and UK. While the UK fund was launched with a corpus of $130 million to invest in startups, the India SME-focused fund comprised $20 million (around Rs 152 crore).
“India has a tremendous focus on SMEs as it directly employs a population of nearly 110 million. Through this strategic collaboration with Mastermind, we are keen to become a leading player in the India SME segment,” said Nayan Gala, founder of JPIN.
London-based JPIN is a venture capital and growth capital platform with an investor base of more than 2000, including single-family offices, UHNIs, and large private investors.
The Mastermind JPIN Capital Partners Fund comprises a team of experts with sponsors including Mastermind’s co-founders Ladage N.R Parameswaran among others, and an advisory board comprising JPIN founders Gala and Gaurav Singh.
Mastermind, founded in 1995, has been providing access to capital and expert counsel to SMEs in India. It has invested in Wellness Forever, RBL Bank ,Dynacons Systems & Solutions, Nobel Hygiene.