State Bank of India (SBI) Group’s venture capital arm SBICap Ventures (SVL) has reportedly raised $25 Mn from European Investment Bank (EIB) for its Neev II Fund, which it plans to close at $118 Mn (EUR 100 Mn).
The investment arm will raise the target amount from global as well as domestic investors. So far, the fund is backed by SBI, Small Industries Development Bank of India (SIDBI) and the UK Government’s Department for International Development (DFID).
SBICap Ventures is looking to invest in eight low-income and developing states, which focus on infrastructure sub-sectors such as renewable energy, agricultural supply chain, healthcare, education, urban infrastructure and roads. These eight states include Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and West Bengal.
According to the European Investment Bank’s website, Neev Fund aims to provide equity and quasi-equity support to SMEs that contribute to the achievements of the United Nations’ (UN) Strategic Development Goals and climate sustainability in India. The latest development about the European Investment Bank was first reported by ET.
The Neev Fund is an INR 504 Cr ($67 Mn) fund, established as a contributor trust in 2014. It has invested in 10 companies to date, including United Sustainable Energy India, Milk Mantra Dairy, Crystal Logistics, SunSource Energy, Mahendra Educational, Lakshmi Agri, Rahi Care Dialysis, Blue Planet Environmental Solutions, Indian Angel Network and PRESPL.
SBICap Ventures has also invested in venture capital firm Inflexor Ventures’ maiden fund of INR 500 Cr, along with SIDBI, family offices and ultra-rich individuals. The Inflexor Technology Fund was launched earlier this year to back technology startups from seed to Series A+ startups. The fund will back B2B and enterprise startups in sectors such as healthtech, fintech, consumer tech, cleantech, edtech, deeptech and agritech.
Social impact investments have picked up in India with many local and global funds coming in the picture to invest in companies that are promising to make a social and sustainable impact. Some of these funds operating in India are Caspian Impact Investments, Unitus Capital, Aavishkar, Villgro, Social Alpha, Lok Capital, Acumen and Omidyar.
According to Inc42 Plus analysis, Omidyar Network India is one of the top 10 venture capital firms in India, with 71 deals. The company’s portfolio includes Dailyhunt, Indifi Technologies, 1mg, Needslist, Bounce, Platzi, Pratilipi, Healthkart, Doubtnut, ZestMoney, WhiteHat Education Technology.