Metropolitan Stock Exchange of India Limited (MSE) is planning to invest $100 Mn in MSMEs (micro, small and medium enterprises) and startups and is launching two exchange platforms for the development of both equity and debt market segments.
“We are looking at starting with a $100 Mn fund going up to $250 Mn in the next three years. This will also enable us to garner a 20% market share in the same time frame,” MSE CFO Kunal Sanghvi said.
The initiative is aimed towards MSMEs and startups deleverage their bank balance sheets and improve credibility in the financial system.
MSE has also forged an alliance with Canada-based technology and media focused DTM Global Holdings and their partners to launch VentureXchange, aimed at opening up newer avenues for MSME growth and to foster startup ecosystem. It is also launching Go-LiquidX, a platform focussed on creating liquidity in the distressed and non-performing loan sector.
According to Sanghvi, the purpose of launching the exchange platforms is to create more bandwidth for attracting investors as well as participants to create a more conducive financial environment.
The alliance is also planning to launch alternative investment funds (AIFs) to facilitate the growth of the industry, and also to address the concerns of venture capitalists and investors who face the challenge of illiquidity.
“The idea is to be the enabler and create a tech-enabled liquidity bridge that will offer a range of exit options to existing investors, which in turn will encourage them to reinvest in more startups,” Sanghvi said.
With DTM Global Holdings as partners, MSE sees an added acceleration to rollout programs targeting the NPA (non-performing asset) market which is today at about (INR 9 lakh Cr), the startup market which is approximately $15 Bn, and the MSME market valued at $2 Bn — according to MSE’s official release.