Getfive Funds Secures SEBI Nod for ₹500 Crore SME-Focused AIF

Financial services and merchant banking firm Getfive Funds has secured regulatory approval from the Securities and Exchange Board of India (SEBI) to launch Getfive Opportunity Fund II, a Category-I Alternative Investment Fund (AIF) with a target corpus of ₹500 crore.

The fund marks the firm's second AIF vehicle, scaling up its capital deployment strategy to back growth-stage Small and Medium Enterprises (SMEs) located across Tier 1, Tier 2, and Tier 3 markets in India.

Target Sectors and Investment Mandate

Getfive Opportunity Fund II has outlined a wide cross-sector mandate designed to capitalize on India's industrial transformation, domestic manufacturing push, and technology adoption.

The fund plans to allocate capital across sectors including:

• Defence, aerospace, and space-tech
• Deep-tech and precision engineering
• Advanced manufacturing, pharmaceuticals, and healthcare
• Financial services, technology, and consumer & retail
• Agritech, logistics, supply chain management, and renewable energy
• Waste management and education

The fund will follow the firm’s proprietary "V3" (V-Cube) framework—evaluating businesses on Vision Through Promoter, Value Through Company, and Velocity Through Industry. Shrikant Goyal, Managing Director and Fund Manager at Getfive Funds, will helm the fund. Goyal brings nearly two decades of experience in capital markets, corporate fundraising, and structured debt.

Maturing SME Ecosystem and Public Markets Outlook

The launch comes amid heightened interest in India’s small-cap and SME public platforms, specifically BSE SME and NSE Emerge. However, the influx of capital has occasionally sparked market regulator concerns regarding excessive retail speculation and listing-day volatility.

Goyal emphasized that institutional capital plays a critical role in vetting balance sheets and instilling corporate governance before companies approach public markets. According to Getfive's internal assessments, roughly 400 SME companies are projected to list on the BSE SME and NSE Emerge platforms over the next three to four years.

Historical trends in the asset class demonstrate strong divergence: approximately 10% of listed SME companies have delivered returns exceeding ten times, and roughly 5% have generated more than twenty times for early investors. Conversely, weaker entities present considerable capital impairment risks.

Strategic Implications for Market Participants

Getfive Funds advised market participants to avoid treating SME investing as a short-term listing-day arbitrage or speculative play. Instead, the firm advocates scrutinizing operational hygiene—such as receivables, trade creditors, and inventory management—which can weed out nearly 80% of accounting red flags before taking a minimum three-year investment view.

The institutional validation provided by SEBI-registered Category-I funds helps bridge the financing gap between early-stage venture funding and mainstream equity capital markets, ensuring growing Indian enterprises have the working capital required to scale nationally.

Tags: SEBI Getfive Funds BSE SME NSE Emerge Alternative Investment Funds Small and Medium Enterprises