Himalaya Wealth Managers LLP has announced the launch of a new SEBI-registered Category I alternative investment fund (AIF), Himalaya SME Scheme-I, to invest in high-growth small and medium enterprises (SMEs) across India.
The fund has a corpus of ₹500 Cr, with a base target of ₹250 Cr and a ₹250 Cr greenshoe option.
The investor will be looking to back SMEs operating in frontier technologies segments like aerospace and defense, industrial automation, healthcare and life sciences, agritech and food processing, electronics and semiconductors, renewable energy and EVs.
Himalaya Wealth Managers will target a gross IRR of 20%+, driven by disciplined investing, structured transactions, and active value creation, the firm said in a statement. It will be focusing on SMEs operating at a growth-stage with “proven business models”.
“Through Himalaya SME Scheme-I, we aim to address this gap by partnering with niche market leaders that demonstrate strong cashflow visibility, high switching costs, and durable competitive moats… The fund is positioned to partner with high-quality businesses and help them transition into institutionally governed, high-growth enterprises,” Deena Mehta, general partner and investment director of Himalaya Wealth Management Fund said.
Himalaya Wealth Managers LLP is led by Mehta, Manohar Lal Vij, Asit C. Mehta and Jatin Tehri and is yet to commence operations.
While numerous investment firms have been launching new funds to back SMEs, the Centre has been equally pushing to groom small businesses in India. In her latest FY26 Union Budget speech, finance minister Nirmala Sitharaman said that the Centre will launch a dedicated ₹10,000 Cr fund for SMEs to create “future champions”.
Meanwhile, the country is also seeing a growing number of businesses emerging in several deeptech segments like defencetech, semiconductor, manufacturing, among others. As a result, private investor interest in the segment has also increased in tandem with growth in innovations.
In 2025, deeptech emerged as India’s third most-funded startup segment. While deeptech startups raised about $500 Mn across 87 deals last year, the sector attracted $166 Mn of capital in Q1 2026 alone.
Source: Inc42 - Startups
