How Veloce Opportunities Fund is Supporting Small Businesses with Venture Debt & Pre-IPO Funding
Veloce Fintech Launches New Fund with Over ₹140 Crore in Commitments
Veloce Fintech, a part of the Lemon Group, is making waves in the Indian startup and MSME (Micro, Small, and Medium Enterprises) ecosystem with the launch of its Veloce Opportunities Fund. This new fund is already generating significant attention, securing more than ₹140 crore in commitments, with a target of ₹200 crore in the near future.
The fund is designed to bridge the gap in funding for small businesses by offering venture debt and pre-IPO funding, giving entrepreneurs much-needed capital to expand and scale. Whether you’re a startup looking for growth or an established MSME aiming for an IPO, this fund has the potential to make a big difference.
What is the Veloce Opportunities Fund?
The Veloce Opportunities Fund is a Category II Alternative Investment Fund (AIF), registered with the Securities and Exchange Board of India (SEBI). It focuses on providing tailored financing solutions to micro, small, and medium enterprises across various sectors, including technology, healthcare, real estate, manufacturing, and more.
The unique feature of this fund lies in its sector-agnostic approach, meaning it isn’t limited to just one type of business. This flexibility allows the fund to invest in a wide range of industries that have strong growth potential.
Key Highlights of the Fund
- Commitments Exceed ₹140 Crore: The fund has already raised over ₹140 crore, surpassing expectations. It also has a ₹40 crore “green shoe option,” giving it the potential to raise even more capital.
- Oversubscribed by 2.7x: The Veloce Opportunities Fund was oversubscribed, indicating strong investor confidence in the venture. This is a clear sign that the market believes in the potential of MSMEs and small businesses in India.
- Target Corpus of ₹200 Crore: The fund is aiming to close at ₹200 crore, and with the current momentum, this goal is likely to be achieved soon.
- Diverse Investors: The fund has attracted a wide range of investors, including high-net-worth individuals (HNIs), non-resident Indians (NRIs), and corporate entities. This diverse mix highlights the broad appeal and belief in India’s MSME sector.
What Does the Fund Offer?
The Veloce Opportunities Fund has a clear focus: venture debt and pre-IPO funding for growing businesses. But what does that mean exactly?
- Venture Debt: This type of financing is for companies that are not yet ready for equity investment but need capital to fuel their growth. It’s a great option for businesses looking to expand but not necessarily seeking to give away equity in exchange for funding.
- Pre-IPO Funding: This is funding provided to businesses that are preparing for an initial public offering (IPO). It helps companies in their final stages of growth to secure the capital needed to go public.
By focusing on these two types of funding, Veloce Fintech is helping businesses that have a clear growth trajectory, strong governance, and scalable business models. These are the companies most likely to benefit from external capital, and Veloce is looking to support them in their growth journey.
A Structured Approach for Long-Term Growth
While the Veloce Opportunities Fund is sector-agnostic, it takes a data-driven and structured approach to investments. The fund uses advanced technology and financial expertise to evaluate businesses thoroughly before making any investment decisions.
Here are some key factors the fund looks at when deciding where to invest:
- Financial Performance: Is the business generating solid revenue? Does it have strong financial health?
- Innovation Capacity: Is the company investing in new technologies or innovative solutions to stay ahead of the competition?
- Market Potential: Is the company operating in a market with growth potential? Does it have a scalable business model?
This method ensures that investments are made only in companies that have the potential to grow and deliver strong returns for investors.
Expected Returns and Stability
Veloce Fintech is aiming to deliver returns of over 18% to its investors. How? The fund focuses on debt investments, which tend to provide stable and predictable returns. Unlike equity investments, which can be volatile, venture debt allows the fund to benefit from consistent interest income and quicker cash flows.
This structured approach is appealing to investors who are looking for lower volatility and higher stability in their investment returns.
The Leadership Behind the Fund
Veloce Fintech was founded by the Lemon Group, a well-established name in the Indian business world. The company is led by Nirav Jogani, an industry veteran with deep expertise in finance and technology.
Nirav Jogani is enthusiastic about the potential impact of the Veloce Opportunities Fund on India’s entrepreneurial ecosystem. He highlights the importance of the fund’s centralized investment dashboard, which allows investors to access real-time updates and insights into the fund’s performance. This transparency and data-driven approach is designed to build trust and efficiency among investors.
In Jogani’s words:
“By leveraging our centralized investment dashboard, we are ensuring unparalleled transparency and efficiency for our investors, offering real-time updates and insights into fund performance. This structured and data-driven approach enables us to unlock value not only for our stakeholders but also for India’s dynamic entrepreneurial ecosystem, which is poised for significant growth in the coming years.”
Why Should You Pay Attention?
The launch of the Veloce Opportunities Fund is a significant milestone for MSMEs in India, especially given the current funding challenges faced by many small businesses. By providing targeted, growth-focused financial solutions, Veloce is positioning itself as a key player in helping businesses scale up, succeed, and create more job opportunities.
For investors, the fund offers a great opportunity to tap into the MSME sector, which is one of the most dynamic and high-growth areas of the Indian economy. With a structured investment model and a focus on debt financing, the fund offers attractive returns and lower risk, making it an appealing option for those looking to diversify their portfolios.
The Road Ahead
With a growing number of startups and MSMEs in India, the Veloce Opportunities Fund is set to play a crucial role in fostering growth and innovation in this space. As the fund moves closer to its ₹200 crore target, investors and entrepreneurs alike will be watching its progress closely.
If you’re a business looking for funding or an investor interested in this promising sector, this is a development to keep an eye on!
