UNLOCKING SME POTENTIAL WITH ALTERNATIVE INVESTMENTS

Steptrade Share Services's Kresha Gupta discusses overcoming investor hesitation, scaling small businesses with equity financing and the growing role of AIFs in India's investment landscape

- Abhishek Sharma

For Kresha Gupta, Director and Founder of Steptrade Share Services, starting and managing India's first SME-focussed alternative investment fund was not an easy task. For her, the biggest hurdle was changing investor perception, as many were hesitant. They were used to blue-chip stocks and found it difficult to trust an investment strategy focussed on smaller, lesser-known companies.

Gupta is the driving force behind the Chanakya Opportunities Fund, India's first SME-focussed alternative investment fund. "Bringing this vision to life came with challenges. Educating them, building trust, and proving the potential of this untapped space became our biggest challenge. We tackled this by maintaining complete transparency, demonstrating integrity, and consistently showing results," she says.

In India, micro, small, and medium enterprises (MSME) contribute approximately 30 per cent to the nation's GDP, yet only 14 per cent of the 63 million small businesses have access to formal credit, leaving a substantial credit gap of $530 billion. Women-led MSMEs face even greater challenges, with a financing gap of $158 billion, despite their significant contributions to the economy. Additionally, the World Economic Forum's Global Gender Gap Report of 2024 indicates that nearly 54 per cent of Indian women still encounter difficulties accessing basic banking services due to social and cultural factors.

Funding Gaps