Challenge & Opportunities
Micro, small, and medium enterprises are the backbone of economic activity around the world, driving job growth and economic development -- but they experience a significant financing gap.
While 40% of India’s work force is employed by SMEs, less than 15% of GDP is attributed to SMEs (versus 35-50% in developed economies). These businesses lack access to capital to grow and create additional employment opportunities and drive economic growth.
The International Finance Corporation reports a financing (debt and equity) gap of over $650B USD, with immediately addressable equity demand of $13.4B USD among several thousand SMEs in India. UM seeks to prove the concept of profitable equity investing in this space.
Small enterprises ($1-10M USD revenue) aiming to grow to medium size ($10-35M USD revenue), operating in established industries.
Operate in established “bread and butter” industries—such as trading, manufacturing, retail, and services—and deploy proven business models
Tier II and Tier III city in India (ex: Madurai, Coimbatore)
Growth stage company seeking funding to expand business, growing from small enterprise to medium enterprise size. $1-10 million USD revenue
Company leader is experienced in leading business, but may lack experience in fundraising or equity financing