EPIC World, a global platform, unveiled the Entrepreneurial Households India Index (EHI Index) on Tuesday. The EHI Index, developed by EPIC World with Morningstar Indexes providing calculation services, tracks the performance of 34 publicly listed Indian companies which offer products and services designed for entrepreneurial households.
“The EHI Index tracks 34 publicly listed companies with a $115 billion market cap and shows that EH-focused businesses are a high-growth, commercially competitive asset class. The Index challenges the popular notion that only India’s top 10 per cent drive spending power and highlights entrepreneurial households as key economic contributors. We believe this segment will lead India’s economic transformation going forward. At EPIC World, we are unlocking this immense potential,” said Jyotsna Krishnan, Co-founder, EPIC World and Managing Partner, Elevar Equity.
The EHI Index features companies as Bandhan Bank, Bajaj Finance, AU Small Finance Bank and Muthoot Finance among others, which are solving the critical needs of the entrepreneurial households – be it access to affordable credit, housing finance or micro-entrepreneurship tools among others.
EPIC World is built on the foundation of Elevar Equity, an impact investor across India and Latin America, that has been the first institutional investor in brands likeLEAD, Samunnati, Niro, Sarvagram, Cloud Physician, Curebay.
“India’s economic growth is driven by a powerful yet overlooked force, the entrepreneurial households. Despite contributing trillions to the economy, Entrepreneurial Households remain underserved by traditional financial and business systems. We are glad to have worked with Morningstar Indexes who provided their calculation services for the index,” Krishnan said.
The EHI Index, while not intended to provide investment inputs, provides data-driven support to the fact that businesses catering to EHs have shown strong growth and created shareholder value, EPIC World said in a statement.
As of date, the EHI Index has outperformed the NIFTY 50 and NIFTY Financial Services Index since its base date in January 2017.Companies in the Index demonstrate a 5-year revenue CAGR of 22 per cent, while also delivering an aggregate 5-year RoE of 16 per cent, surpassing traditional indices.10 EHI Index companies have collectively raised over $1.2 billion in public markets in the last two years.