Vriddhi

  1. Overview

    Vriddhi is a unique venture accelerator platform launched by SPJIMR’s Centre for Family Business & Entrepreneurship-the pioneer in management education directed towards family businesses in India.

    The accelerator is based on the insight that while many family businesses (especially small and medium family enterprises) and startups lack funding as well as managerial inputs and insights, there are others which can step in to provide, not just financial capital, but also network capital, engagement capital and the Emotional Quotient capital required by the former.

    Indeed, in 2021, the World Bank estimated the credit gap for Indian MSMEs – mostly family businesses - at US$ 380 billion, a need that cannot be met by financial institutions alone.

    Vriddhi is an idea born out of this insight and seeks to connect family businesses that are fund seekers with those that are fund providers. It will work as a funding accelerator exclusively available to SPJIMR’s alumni and participants belonging to the CFBE.

    In doing so, it seeks to strengthen the family business ecosystem, which is the backbone of the Indian economy, contributing to Gross Domestic Product (GDP), employment, exports and foreign exchange for India, Family Businesses are also the crucible of innovation in the business landscape of India. Through Vriddhi, SPJIMR’s CFBE will offer a curated platform to help such family businesses and startups achieve their dreams of growing their businesses beyond traditional boundaries.

  2. VRIDDHI Objectives

    VRIDDHI is built around 3 core objectives for family businesses on the fund-seeking side

    • Enabling Access (to funding and mentoring resources)
    • Dedicated Mentoring
    • Focused Funding for Growth

     

    Other than these goals, Vriddhi also aims to:

    • Provide advisory services to FMB alumni to help them set up Family Offices or set up Investment vehicles
    • Help in succession planning (trust formation, setting up a wealth team etc.).
    • Guide in Group Structuring.
  3. Benefits of VRIDDHI

    • Highly deserving growth-oriented business plans can get fully executed with the right amount of funding and managerial expertise.
    • Access to both debt and equity funding
    • Advice to fund-seekers on the right kind of funding options to be sought
    • Access to EQ Capital, Network Capital, and Engagement Capital, besides Financial Capital for fund-seekers
    • An accomplished team of mentors comprising faculty members with industry experience, as well as industry experts
    • Exclusive access to one-on-one mentoring by dedicated mentors on the financial and deal structure for seeking funds, planning, and structuring business growth
    • Additional mentoring on aspects such as market fit, pricing etc. may also be provided to fund-seekers, if they so desire
    • Dedicated access to fund providers through a Pitch Day event held every month to connect family business fund seekers with interested family business fund providers.
    • Family businesses in one part of the country can find strategic and operational synergy by investing in other family businesses.
    • Strengthens the family business eco-system, which represents patient capital and entrepreneurship
  4. Eligibility to participate in VRIDDHI

    • All alumni from SPJIMR’s FMB, SYB and GYB programmes are eligible to apply for the VRIDDHI Accelerator as fund seekers.
    • All FMB Alumni are eligible to be a part of VRIDDHI Accelerator as fund providers.
    • Group of FMB/SYB/GYB Alumni can come together as a consortium and provide consortium funding to fund seekers.

     

    Pre-requisite for Fund-Seekers

    • Must be growth-oriented businesses, with clear evidence of growth over the last 2-5 years
    • Seeking funds and managerial expertise
    • Should be ready with their business plan for a detailed and multi-level evaluation cum due diligence.
    • Should be transparent about their transactions, since this would be a must for external investors
    • Should be willing to provide timely detailed reports of fund usage
    • The business form must be either that of an LLP, LLC, or Pvt Ltd. Company for equity funding. Proprietorships or Partnership firms cannot qualify for SPJIMR’s Venture Accelerator for such funding. In case of debt funding, partnerships may be considered.

     

    Pre-requisites for Fund Providers

    • Need to specify the nature of involvement sought- whether insisting on stake dilution, stake dilution with or without board participation etc.
    • Should be willing to invest time and effort in going through several proposals and insist on due diligence in fund usage
    • Click here to apply as a Fund Provider
  5. VRIDDHI PROCESS

    Applicants on the fund-seeking side will need to go through four stages to benefit from Vriddhi. Applicants will be enrolled into the accelerator after the successful completion of Stages 1 and Stage 2.

    STAGE 1- APPLICATION

    • Applicants need to complete a standard template containing quantitative and qualitative details in the form of an Executive Summary. Click here to apply as a fund seeker
    • At this stage, applicants will be asked their preference for debt or equity capital.
    • Minimum ticket size for debt to be raised (in case of debt funding proposals): Rs. 25 lakhs.
    • Fees at the time of application: Rs. 10,000 (GST extra, as applicable) Click here for Bank Details for online payment
    • Turnaround time of applications at this stage- 10 days
    • Successful applicants will be asked to proceed to STAGE 2.

     

    STAGE 2: DUE DILIGENCE

    • Due Diligence involves detailed analysis of information provided by the applicant. The platform will seek further information from the applicant and other stakeholders at this stage. Templates for such information will be shared with applicants (who have cleared Stage 1) separately. Due diligence of debt funding would be done by the Vriddhi team
    • Fee for the due diligence of debt funding applications: Rs.50,000- Rs. 1,00,000 ((GST extra, as applicable)
    • Turnaround time for debt funding proposals- 10 days
    • In case of equity funding, a separate legal and financial diligence would need to be carried out Techno-feasibility studies may also be recommended at this stage. Such due diligence may be carried out by a third party identified for the process
    • The charges for this exercise shall be communicated to the applicant by the Institute
    • The valuation for equity funding proposals would also be handled by duly chosen third party organisations identified for the purpose by the Institute.
    • Turnaround time for equity funding proposals- 60 days
    • Post the due diligence, the proposal is ready for STAGE 3

     

    STAGE 3: MENTORING

    Mentoring involves one-on-one structured sessions with a Principal Mentor from Vriddhi. Program participants will be provided detailed inputs on several aspects of their business at this stage.

    • Mentoring for debt proposals would involve mentoring the financial and deal structure for seeking funds. The Institute may offer mentoring on other aspects such as market fit, pricing as a value-addition to interested participants
    • Such mentoring sessions shall be held for a max of 1 month involving 15 sessions (@ approx. 4 sessions a week)
    • Mentoring for equity proposals would include mentoring for 4 months involving a max of 40 sessions. If need be, the accelerator may decide to extend a few sessions into the 5th month based on the complexity of the business, family etc.
    • In cases of both debt and equity funding proposals, this stage would involve interacting with family members in business, if need be
    • The charges for this exercise shall be communicated to the applicant by the Institute
    • Each proposal will be handled by a dedicated Principal Mentor, who is part of the core team of VRIDDHI
    • Mentoring charges: Rs. 1,00,000 for debt proposals, and Rs. 5,00,000 for an equity proposal (GST extra, as applicable)

     

    STAGE 4: PITCH FEST

    • A ‘Pitch Day’ will be conducted every month/ every quarter based on the number of proposals received by CFBE
    • At least 7-8 proposals will be showcased per Pitch Day
    • Fund providers would be provided with a 2 page note for each proposal presented, which will also contain the range of rates at which the debt is expected to be raised, based on the analysis of the business, sector etc.
    • A success fee will be charged by the Institute at this stage
    • The charges at this stage = 3% of the deal as success fee for a debt funding and 5% of the deal amount for equity funding ((GST extra, as applicable)
    • In case the fund provider decides a further physical verification, the same may be arranged by Vriddhi through third party vendors empanelled for the purpose. All out-of-pocket expenses to be charged to the fund seeker.
  6. SPJIMR LEGAL LIABILITY

    • The institute will have no legal liability towards either the fund seekers or fund providers. SPJIMR resource persons will act as mentors and advisors and SPJIMR CFBE will provide the platform to connect fund-seeking family businesses with fund providing family businesses.
  7. CORE TEAM OF VRIDDHI

    Dr. Tulsi Jayakumar: Advisor, Vriddhi; Professor, Economics and Chairperson, CFBE, SPJIMR

    Mr. Shivkumar Mani: Principal Mentor, Vriddhi ; Visiting Faculty (Service Elective), SPJIMR

    Mr. Farzan Ghadially: Principal Mentor, Vriddhi; Visiting Faculty (Finance), SPJIMR

    Ms. Pinky Parekh: Principal Mentor, Vriddhi

    For any queries, please write to us at vriddhi@spjimr.org

 

FMB Alumni (as well as GYB and SYB alumni) have several new ideas for expanding their businesses, many of which die a natural death due to the operational demands and exigencies of the family business which they belong to. Vriddhi- SPJIMR’s Accelerator platform offers an opportunity for the alumni to bring these ideas to life through a curated program where well-formed ideas of the alumni find backing from providers of funds with detailed inputs from SPJIMR faculty and mentors. It will help them to address the afore-mentioned challenges especially that of funding and attracting top managerial talent.

FMB alumni /current participants who seek funds and managerial expertise
VRIDDHI
FMB Alumni who wish to invest their surplus capital and time for mentoring

Benefits for family businesses

  • Highly deserving growth-oriented business plans can get fully executed with the right amount of funding and managerial expertise.
  • Access to both debt and equity funding
  • Advice to fund-seekers on the right kind of funding options to be sought
  • Access to EQ Capital, Network Capital, and Engagement Capital, besides Financial Capital for fund-seekers
  • An accomplished team of mentors comprising faculty members with industry experience, as well as industry experts
  • Exclusive access to one-on-one mentoring by dedicated mentors on the financial and deal structure for seeking funds, planning, and structuring business growth
  • Additional mentoring on aspects such as market fit, pricing etc. may also be provided to fund-seekers, if they so desire
  • Dedicated access to fund providers through a Pitch Day event held every month to connect family business fund seekers with interested family business fund providers.
  • Family businesses in one part of the country can find strategic and operational synergy by investing in other family businesses.
  • Strengthens the family business eco-system, which represents patient capital and entrepreneurship

Pre-requisite for Fund-Seekers

  • Must be growth-oriented businesses, with clear evidence of growth over the last 2-5 years
  • Seeking funds and managerial expertise
  • Should be ready with their business plan for a detailed and multi-level evaluation cum due diligence.
  • Should be transparent about their transactions, since this would be a must for external investors
  • Should be willing to provide timely detailed reports of fund usage
  • The business form must be either that of an LLP, LLC, or Pvt Ltd. Company for equity funding. Proprietorships or Partnership firms cannot qualify for SPJIMR’s Venture Accelerator for such funding. In case of debt funding, partnerships may be considered.

Pre-requisites for Fund Providers

  • Need to specify the nature of involvement sought- whether insisting on stake dilution, stake dilution with or without board participation etc.
  • Should be willing to invest time and effort in going through several proposals and insist on due diligence in fund usage
  • Evaluation and scrutiny of Fund-Raising proposals by experts
  • Exclusive access to investors from the Alumni network and angel investors
  • Support in preparing the Pitch Deck including mentoring.
  • Providing EQ Capital, Network Capital, and Engagement Capital through the FMB ecosystem, together with Financial Capital
  • The accelerator other than helping Fund Seekers would also provide advisory services to FMB alumni to help them set up Family Offices or set up Investment vehicles, help in succession planning (trust formation, setting up a wealth team etc.).
  • The platform would also guide participants in Group Structuring.
Call for Fund Seeking Proposals
Evaluation of Proposals
Mentoring the Vetted Proposals (1-4 months)
Facilitating the pitch
Call for Funds
Committment from individuals/ FBs regarding funds
Announcement of closure of funds
Provide details of opportunities for Funding to investors/ investor groups
Arrange Investor-Investee meeting i.e. a PITCH DAY
Record Deployment of funds

Through Vriddhi, fund seekers can ask for funds in the form of debt as well as Equity. However, the nature of deployment of funds would be arrived at after the evaluation of proposals by the Institute as well as through mutual discussions.

  • The program duration is anywhere in the range of 1 month to 4 months depending on the nature of funds sought to be raised by the applicant. Typically, proposals seeking debt would be ready for presentation to fund providers, after mentoring, in 30 days.
  • Those who are seeking equity participation from fund providers would need to invest up to 2 months for completing the detailed due diligence and valuation of their proposals, followed by 3-4 months of mentoring.

Fund seekers need to submit proposals for a minimum fund raise of Rs.25 lakhs. Fund seeking proposals below this amount shall not be entertained by the Institute.

No. SPJIMR encourages family business applicants from any sector to apply for fund raising through the Vriddhi Accelerator Program.

Interested participants need to pay a sum of Rs.10,000 with every application. The application shall be in a standard format. Once the application is formally accepted by the Institute, the applicant needs to pay a sum of Rs.50,000- Rs. 1,00,000 for scrutiny and due diligence of their debt proposals. In the case of proposals seeking equity funding, the amount would be determined on a case-by-case basis. The Institute shall declare a list of successful applicants whose proposals have cleared the requisite scrutiny and due diligence. Those who are accepted/enrolled into Vriddhi shall pay a sum of Rs. 1 lakh for proposals involving debt funding and Rs. 5 lakhs involving equity funding. At each stage, GST shall be extra and charged as applicable.

Yes. Proposals seeking funds in the form of debt are eligible for the program provided they fulfil all the conditions stipulated by the Institute for the program.

The Institute shall organise a Pitch Day whereby the fund raisers shall be given an opportunity to present their detailed fund-raising plans to the potential fund providers. These presentations shall be one on one meetings arranged by the CFB&E.

Once fund providers confirm their acceptance of a proposal, there is a binding agreement between the fund seeker and the fund provider. The Institute shall facilitate this agreement process only with the mutual agreement of the concerned parties. The Institute will bear no liability to either party under any circumstances.

  • Inputs on preparation of financial plans and projections.
  • Inputs on presentation during the Pitch Day.
  • Inputs on market segmentation, pricing, and marketing strategy (if desired by the fund seeker)

The program is headed by Dr. Tulsi Jayakumar, Chairperson of the Centre for Family Business & Entrepreneurship and Professor of Economics, SPJIMR. Resource persons for the VRIDDHI program, who would act as Principal Mentors include:

  • Inputs on preparation of financial plans and projections.
  • Inputs on presentation during the Pitch Day.
  • Inputs on market segmentation, pricing, and marketing strategy (if desired by the fund seeker)

All efforts are made by Vriddhi to prepare the participants for a successful fund raise during the Pitch Day. However, there could be occasions, during the pitch day, where the fund providers may not proceed with the funding as desired by the fund seeker. On such occasions, the Institute may favourably consider engagement extension on a case-to-case basis under Vriddhi.

The fees are non-refundable and form a part of the training and will be like a pseudo preparatory course for all candidates, thereby positioning for future funding of the business on an ongoing basis.

Vriddhi is curated in a manner that the participants get a holistic approach to executing their business plans beyond the immediate purpose of raising funds for the business. The mentoring stage achieves this purpose for all the participants. Vriddhi is culminated as an accelerator platform once the mentoring stage is completed by all the participants.

Mentoring will be a compulsory process and will help bridge the gap in seekers and providers. The time spent on each case can be considered mutually between the mentor and the seeker, depending on level of preparedness shown by each seeker.

 
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