EPIC World, a global platform, introduced the Entrepreneurial Households India Index (EHI Index) on Tuesday. The EHI Index, developed by EPIC World with Morningstar Indexes providing calculation services, monitors the performance of 34 publicly listed Indian companies that provide products and services tailored for entrepreneurial households.
“The EHI Index tracks 34 publicly listed companies with a $115 billion market cap and demonstrates 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 includes companies such as Bandhan Bank, Bajaj Finance, AU Small Finance Bank, and Muthoot Finance, among others, that address the critical needs of entrepreneurial households – whether it’s access to affordable credit, housing finance, or micro-entrepreneurship tools.
EPIC World is founded on Elevar Equity, an impact investor in India and Latin America, which has been the first institutional investor in brands like LEAD, Samunnati, Niro, Sarvagram, Cloud Physician, and 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 stated.
While not meant for investment advice, the EHI Index offers data-driven support to the idea that businesses catering to EHs have exhibited strong growth and created shareholder value. As of now, the EHI Index has outperformed the NIFTY 50 and NIFTY Financial Services Index since its inception in January 2017. Companies in the Index show a 5-year revenue CAGR of 22 per cent and an aggregate 5-year RoE of 16 per cent, surpassing traditional indices. Additionally, 10 EHI Index companies have collectively raised over $1.2 billion in public markets in the last two years.
