Metropolitan Stock Exchange of India (MSE) has partnered with Canada’s Delaware Group, DTM Global Holding, and their partners, to float a ₹740 crore ($100 million) fund.
The fund will be used to invest in startups, along with micro, small, and medium enterprises (MSME) in India.
MSE is looking to further expand the fund size to ₹1,855 crores ($250 million), as it targets 20% market share in the next three years.
The stock exchange plans to introduce two exchange platform, namely, VentureXchange and GoLiquidX, in order to help companies raise funds.
VentureXchange will enable micro venture capital firms, startups and SMEs, to secure funds through equity and debt, directly from both international and local investors. While, GoLiquidX will help create liquidity for distressed assets and bad loans.
Kunal Sanghavi, Chief Financial Officer, MSE, said, “The purpose of launching the exchange platforms is to create more bandwidth for attracting investors as well as participants on a broader basis to create a more conducive financial environment leading to more flexibility and resource mobilization whether financial technical or operational.”
MSE is also looking to launch a platform to enable listing of Alternative Investment Funds (AIFs), to boost the growth of AIF industry. This initiative will further alleviate the challenges of illiquidity. With the idea of creating a tech-enabled liquidity bridge to offer exit options to existing investors, to enable further reinvesting of funds.
The latest partnership will help MSE to accelerate its rollout programs, to create robust platforms for both equity and debt market segments.
MSE is one of the eight stock exchanges in the country recognised by the Securities and Exchange Board of India (SEBI), among BSE and NSE. It began operations from 7th October 2008. It offers an electronic platform for trading in the capital market, futures and options, currency derivatives, Interest Rate Futures (IRF) and Debt Market segments.
According to MSE, the non-performing assets market is worth 9 lakh crores, the startup market is worth around $15 billion, and the MSME market is worth around $2 billion, creating opportunities.
Indian MSME sector is finally attracting the investments and the boost it requires to create a robust ecosystem for these small businesses to thrive in the growing Indian economy.