Odisha Launches INR 100 Cr Startup Growth Fund To Provide Funding

SUMMARY

The fund has been launched in partnership with the Small Industries Development Bank of India (SIDBI), which would be the fund manager

The fund would invest over the course of five years in Odisha-based startups through AIFs and would be consistently replenished by the state government

The launch of the fund is an initiative of Startup Odisha to achieve the state government’s goal of making Odisha a thriving startup hub

The Odisha government has launched an INR 100 Cr Odisha Startup Growth Fund (Fund of Funds) to invest in startups in the state over the next five years.

The fund, an initiative of Startup Odisha, a division of the state’s MSME department, has been launched in partnership with the Small Industries Development Bank of India (SIDBI), which would be the fund manager.

“When the initial corpus of INR 100 Cr gets exhausted, the state government would consistently replenish the fund, ensuring continuous, long-term support for startups,” a statement said.

The initiative is part of the state government’s efforts to make Odisha a startup hub and aims to provide long-term support to startups in the state.

SIDBI will manage the fund and will be responsible for shaping its investment strategy and managing its portfolio. The fund would invest over the course of five years in Odisha-based startups through Alternative Investment Funds (AIF).

Commenting on the initiative, Anu Garg, IAS Development Commissioner cum Additional Chief Secretary, said, “Our endeavour through the launch of Odisha Startup Growth Fund is to make Odisha the preferred destination for entrepreneurs. Odisha is at the cusp of transformational change and the Government of Odisha aims to extend its support to initiatives like this that help the citizens of this state to grow.”

She added that the partnership would pave the way for innovation to flourish and startups to thrive in the state.

According to the state government, Odisha has over 1,700 startups, of which 600 are women-led. With the launch of the fund, the state government is looking to boost these as well as new entrepreneurs.

Startup Odisha, which came into existence in 2016 with Odisha Startup Policy-2016, aims to develop a holistic and inclusive ecosystem for existing and aspiring startups. It has played a key role in promoting startups in the state.

Currently, Odisha’s startup ecosystem is supported by 15 nodal agencies, 27 incubators, and a centralised incubator ‘O-Hub’ that provides 4 lakh sq ft of incubation space.

Earlier this month, Startup Odisha also approved a grant worth INR 1.28 Cr for 10 startups from various sectors like agritech, food and beverages, HRtech, enterprise technology, retail, education and logistics.

Recently, talking to Inc42, Dr Omkar Rai, executive chairman of Startup Odisha, said the state government is looking to foster 5,000 startups in Odisha by 2025. The government has rolled out a number of initiatives like the Startup Yatra 2023 and Startup Express 2023 to attain this goal. Further, the government plans to increase the number of incubators in the state, with the aim of creating one in every district.