SIDBI Sanc­tions .₹ 1,000 cr to Sup­port Early-stage Star­tups

Amount to be given to 30 ven­ture funds from In­dia As­pi­ra­tion Fund

The Economic Times - - Companies: Pursuit Of Profit - Joel.Re­bello@ times­

Mum­bai: The Small In­dus­tries De­vel­op­ment Bank of In­dia (SIDBI) has sanc­tioned .₹ 1,000 crore to 30 ven­ture funds through the govern­ment-fi­nanced In­dia As­pi­ra­tion Fund, which seeks to sup­port star­tups in their early stages. The amount was sanc­tioned by the SIDBI ex­ec­u­tive com­mit­tee from the .₹ 1,416 crore ap­proved by its in­de­pen­dent ad­vi­sory ven­ture cap­i­tal in­vest­ment com­mit­tee, chair­man Ksha­tra­p­ati Shivaji said.

Ear­lier this month, SIDBI signed a mem­o­ran­dum of un­der­stand­ing with Life In­surance Cor­po­ra­tion of In- KSHA­TRA­P­ATI SHIVAJI dia un­der which the gov­ern­men­towned com­pany would con­trib­ute 10% of the fund as a co-in­vestor. “We got many pro­pos­als from funds, out of which 35 pro­pos­als were rec­om­mended by the VCIC to our ex­ec­u­tive com­mit­tee. We have al­ready ap­proved 30 of the pro­pos­als worth .₹ 1,000 crore,” Shivaji said.

The pro­pos­als are from ven­ture funds such as IvyCap Ven­tures, Blume Ven­tures and Exfin­ity Ven­ture Part­ners. SIDBI will pro­vide th­ese funds about 15- 20% of their to­tal in­vest­ment in star­tups. The re­main­ing amount will be mo­bilised by ven­ture funds from pri­vate cap­i­tal and other in­vestors, Shivaji said. “Th­ese funds will be in­vested to start up units. Pri­mar­ily, our aim is to nudge them to make in­vest­ments in the seed stage be­cause that is when they need the max­i­mum sup­port,” he said. The govern­ment launched the In­dia As­pi­ra­tion Fund in Au­gust 2015 with the in­ten­tion of pro­vid­ing equity in­vest­ments to star­tups and mi­cro and small en­ter­prises and boost­ing em­ploy­ment.

In Jan­uary, Prime Min­is­ter Naren­dra Modi an­nounced an ad­di­tional .₹ 10,000 crore to sup­port star­tups, which will be funded on an an­nual ba­sis with .₹ 2,500 crore. He also an­nounced a tax hol­i­day, sim­pli­fi­ca­tion of pro­ce­dures and faster clo­sures for star­tups.


Newspapers in English

Newspapers from India

© PressReader. All rights reserved.