Bharat Fund has Sebi’s Ap­proval to Get In­no­va­tive

The Economic Times - - Disruption: Startups & Tech - Vishal.Dutta@ times­

Ahmed­abad: IIM Ahmed­abad’s Cen­tre for In­no­va­tion In­cu­ba­tion and En­trepreneur­ship (CIIE) has got ap­proval from mar­ket reg­u­la­tor Sebi for its Bharat In­no­va­tion Fund as cat­e­gory-I ven­ture cap­i­tal fund un­der the AIF (Al­ter­na­tive In­vest­ment Fund) norms.

The ₹ 1,000-crore fund, which is tar­get­ing a first close of ₹ 200-300 crore by June, will in­vest in tech­nol­ogy-en­abled en­ter­prises in ar­eas like sus­tain­able en­ergy, health­care and dig­i­tal tech­nol­ogy.

Bharat In­no­va­tion Fund is a pub­lic-pri­vate-academia part­ner­ship set up by CIIE. The main tar­get is to pro­vide sup­port and fund in­no­va­tion-driven star­tups that solve real prob­lems faced by the masses of In­dia through tech­nol­ogy-en­abled and rapidly-scal­able so­lu­tion. In Septem­ber 2015, Prime Min­is­ter Naren­dra Modi, dur­ing his US visit had an­nounced the launch of $150-mil­lion fund at the In­dia-US Startup Kon­nect, on the side-lines of his visit to the Sil­i­con Val­ley.

“We have re­ceived the nec­es­sary ap­proval from Sebi, af­ter the close of the first fund we can start in­vest­ing,” said an of­fi­cial from CIIE.

As per the statu­tory re­quire­ments, the in­vest­ment in star­tups can be­gin within18 months or af­ter rais­ing at least ₹ 50 crore, which­ever is ear­lier. MSTISLAV DOBUZHINSKY,

As per the reg­u­la­tory ap­proval, the fund can raise up to ₹ 500 crore as base fund and if there is still in­ter­est of in­vestors to fund more, an­other ₹ 500 crore can be raised via green-shoe op­tion.

Un­til now, the fund has re­ceived let­ter of in­tent (LoI) from ma­jor in­surance com­pa­nies for in­vest­ments. “We are await­ing con­fir­ma­tion from few more play­ers,” said the of­fi­cial. Ear­lier, Depart­ment of Biotech­nol­ogy (DBT) and Biotech­nol­ogy In­dus­try Re­search As­sis­tance Coun­cil (BIRAC) pledged to par­tic­i­pate in the Bharat In­no­va­tion Fund (Bharat Fund). The DBT had com­mit­ted to in­vest ₹ 50 crore over the next three years to sup­port star­tups through this fund.

“In­dia needs dis­rup­tive ideas and tech­nolo­gies to rev­o­lu­tionise the lives of the masses. Tata Trusts be­lieves en­trepreneur­ship is one of the more ef­fec­tive means of cre­at­ing scal­able so­lu­tions and we are de­lighted to be a part­ner in the Bharat Fund,” said Ratan Tata, Chair­man, Tata Trusts as per the press state­ment is­sued in 2015.

Tata Trusts is a found­ing part­ner of the Bharat Fund.

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