Funding

Bharat Value Fund Series 3 Achieves ₹1,250 Crore First Close in Record Time

A corporate graphic titled "Bharat Value Fund" on a blue textured background. To the right, a woman with long, straight hair is seated in a chair, wearing a red top and a necklace. A text overlay reads "Ms. Madhu Lunawat, Pantomath."
By
Anurag Trivedi
3 min read

Bharat Value Fund (BVF), a mid-market-focused Alternative Investment Fund (AIF) managed by The Wealth Company Pvt Ltd (formerly Pantomath Capital Management), has achieved the first close of its BVF Series 3 at ₹1,250 crore. The milestone was reached in just 45 days, reflecting strong investor confidence in the fund's strategy and objectives. The fund targets a total corpus of ₹2,500 crore, including a green shoe option of ₹1,000 crore, underscoring its commitment to fostering growth in India's mid-market enterprises.

Investment Focus of BVF Series 3

  • Target Enterprises: BVF invests in high-growth, mid-market businesses with revenues ranging between ₹300 crore and ₹1,000 crore. These enterprises are typically based in Tier II and Tier III cities, areas often underserved by traditional private equity funds.
  • Investment Strategy: The fund aims to provide structured financing that aligns with the business lifecycle, focusing on enabling robust growth. BVF designs exit strategies, including Initial Public Offerings (IPOs), within 30-36 months of investment. Other potential exit routes include strategic mergers, acquisitions, or secondary sales to private equity players.
  • Sectoral Focus: While BVF has traditionally invested across diverse sectors, its emphasis remains on businesses with tangible assets and strong growth potential, ensuring sustainability and profitability.

Key Recent Investments by BVF

  1. BGauss Electric Scooters (January 2025):
    • Investment: ₹161 crore.
    • Purpose: To expand its manufacturing capacity, strengthen research and development, and enhance its market presence in India's fast-growing EV sector.
    • Impact: This funding positions BGauss as a key player in India's burgeoning electric vehicle industry.
  2. Haldiram Bhujiawala (November 2024):
    • Investment: ₹235 crore for a minority stake.
    • Purpose: To expand manufacturing capabilities and enter new markets, both domestically and internationally.
    • Impact: The investment supports Haldiram’s ambition to scale operations in the packaged snacks industry.

What Sets BVF Apart?

  1. Mid-Market Leadership: BVF has established itself as a pioneer in India's mid-market investment space, focusing on Tier II and Tier III cities, where businesses often face capital access challenges.
  2. Active Ownership Model: BVF provides portfolio companies with hands-on support, including:
    • Strategic guidance.
    • Recruitment of key talent.
    • Business development.
    • Strengthening corporate governance.
  3. Fast Fundraising: The first close of ₹1,250 crore was achieved in just 45 days, a testament to BVF’s credibility and the trust it commands among investors.

Market Outlook for Mid-Market Enterprises

India's mid-market enterprises represent a critical engine of economic growth, contributing significantly to GDP and employment. Despite their importance, these companies often struggle with funding gaps and operational inefficiencies. Funds like BVF bridge this gap, driving growth and enabling these businesses to scale effectively.

Leadership Perspective

  • Nikhil Shah, Managing Director of The Wealth Company, stated:"BVF Series 3 reflects our commitment to supporting mid-market enterprises that form the backbone of India's economy. By focusing on high-growth businesses in underserved regions, we aim to create long-term value for our investors and portfolio companies."
  • Investor Confidence: The rapid fundraising for BVF Series 3 highlights growing trust in India's mid-market potential and the robust returns generated by previous BVF funds.

Our Opinion on the News

The successful first close of Bharat Value Fund Series 3 at ₹1,250 crore is a significant development for India’s entrepreneurial ecosystem. By focusing on mid-market enterprises in Tier II and Tier III cities, BVF is addressing a critical funding gap while unlocking immense growth potential. The fund’s active ownership approach, coupled with its strategic sector focus, positions it as a transformative force in India’s investment landscape.

Investments in companies like BGauss and Haldiram Bhujiawala demonstrate BVF's ability to identify and nurture high-potential businesses. As BVF progresses toward its target corpus of ₹2,500 crore, its impact on India’s mid-market segment is expected to grow exponentially, fostering innovation, sustainability, and economic growth.