CA Ashok Holani, Chief Investment Officer (CIO), Holani Venture Capital Fund
Jaipur (Rajasthan) India- May 29 India’s Micro, Small, and Medium Enterprises (MSME) sector is set to become the key growth driver of the country’s economy by the end of 2025 and could be considered a “prime investment opportunity”, according to CA Ashok Holani, CIO of Holani Venture Capital Fund.
Speaking on the sidelines of the latest International Monetary Fund (IMF) World Economic Outlook (WEO) report—which projects India as the world’s fourth-largest economy, surpassing Japan— Mr Holani emphasized the crucial role of MSMEs in this evolving growth story.
“MSMEs will play a pivotal role in India’s $4 trillion economy, and cannot be overlooked. While policymakers would pay significant attention to this sector, it would be prudent to closely follow the growth story of select players in the sector, and invest prudently in those driving India’s growth story,” he stated.
Holani highlighted that several industries within MSMEs—including electric vehicles (EV), agritech, FinTech, e-commerce, healthcare, and renewable energy—are poised for significant expansion in 2025. “Innovation is the key in MSMEs. Make in India has always taken flight and taken the Indian MSME sector to the global platform, while initiatives like NITI Aayog’s SME 4.0 Competence Centres are driving technological adoption, ensuring MSMEs remain competitive in the evolving economic landscape,” he said.
The MSME sector already contributes roughly 29% to India’s GDP and employs nearly 60% of the workforce, making it a backbone of economic development. With the MSME Gross Value Added (GVA) share in India’s GDP steadily rising to 30% in 2022–23, Holani expressed confidence in the ongoing policy support.
With increased credit guarantees, enhanced MSME support schemes, and sector-specific funds making it easier for MSMEs to access funding and scale their businesses, MSMEs would provide ample investment opportunities, he asserted.
“The big leap for MSMEs is inevitable, and so is their role in driving India’s growth story,” he concluded.
About CA Ashok Holani
Ashok Holani is a Rank Holder Chartered Accountant with an impressive track record with over 24 years of experience in investment banking, financial advisory, auditing, taxation, financial structuring for large corporates and esteemed SMEs.
As an investment banker and financial adviser, he has played a pivotal role in guiding companies toward successful listings in his role as a director at Holani Consultants Pvt Ltd., SEBI Registered Category I Merchant Banker. With expertise spanning in both SME and Main Board IPOs, Mr. Holani has facilitated over ₹1300 crore across 21+ projects. Some of his key clientele include KRN Heat Exchanger and Refrigeration Ltd., Insolation Energy Ltd., Network People Technologies Ltd., Motisons Jewellers Ltd., Infollian Research Services Ltd., E2E Networks Ltd., Shera Energy Ltd., etc.
His deep understanding of SEBI, income tax, and indirect tax laws, combined with his strong industry relationships, ensures seamless execution and exceptional financial management.
Extremely enthusiastic about the role of MSMEs in India’s economic growth story, he has played a role in setting up the Holani Venture Capital Fund, a ₹400 crore SME-focused fund aimed at boosting resilience and growth in the sector.
He has strong relationships with Nationalised and Private Sector Banks and has a strong understanding of Corporate and SEBI Laws, Income tax and other indirect taxes laws.
About Holani Venture Capital Fund
Holani Venture Capital Fund, a SME-focused fund (SEBI Category I AIF-VCF) led by Holani Capital Advisors, is dedicated to empowering fast-growing small and medium businesses (SMEs) in India to achieve their full potential.
The fund invests strategically in high-potential SMEs across diverse industries, with a particular focus on the burgeoning SME IPO market. The fund works towards creating long-term value for its investors, helping Indian entrepreneurs (SMEs) flourish and contributing to sustainable economic growth for India’s future.
Till now, the fund has raised ₹ 234 Cr from 171 investors in its fundraising rounds.
By empowering MSMEs through strategic investments, HVCF aims to create a ripple effect that fuels the economy and generates value for all stakeholders—businesses, investors, and society at large.
