SIDBI, NSIC To Invest INR 300 Cr In Former KKR India Head Sanjay Nayar’s Startup Fund

SUMMARY

NSIC will invest through the INR 10,000 Cr Self Reliant India Fund, which is managed by its subsidiary NSIC Venture Capital Fund Limited

Sorin Investments, the tech-focused fund cofounded by Nayar and Angad Banga, raised INR 1,000 Cr in August

Sorin has deployed around INR 80 Cr in two startups so far and plans to invest approximately INR 70 Cr in two more transactions in 2023

The Small Industries Development Bank of India (SIDBI) and the National Small Industries Corporation Limited (NSIC) are set to back Sorin Investments, a startup fund led by former KKR India head Sanjay Nayar.

SIDBI and NSIC, through the INR 10,000 Cr Self Reliant India (SRI) Fund, managed by its subsidiary NSIC Venture Capital Fund Limited (NVCFL), will together invest INR 300 Cr in Sorin, ET reported.

Sorin will close its maiden fund at INR 1,300 Cr, the report said.

The NVCFL is registered with SEBI as a Category II alternative investment fund. The SRI Fund is sponsored by NSIC and will employ a funds-of-fund investment strategy wherein it would invest in SEBI-registered Category I and Category II alternative investment funds (daughter funds), which shall in turn invest in MSMEs.

As per the report, Sorin, the tech-focused fund cofounded by Nayar and Angad Banga, raised over INR 1,000 Cr in August. It has raised capital from US-based KKR & Co associates, including Henry Kravis and George Roberts, as well as Sunil Kant Munjal and Indian family offices. It has deployed about INR 80 Cr in two startups so far, the report said.

The fund also plans to invest approximately INR 70 Cr in two more transactions by 2023, the publication reported citing sources.

Last year, Sorin marked the first close of its debut fund at $100 Mn. The fund focuses on early stage technology startups across industries like fintech, edtech, software as a service (SaaS), logistics, clean technologies and direct-to-consumer products and brands. It aims to invest between $2-10 Mn in target companies.

The development comes at a time when the Indian startup ecosystem continues to reel under the impact of the ongoing funding winter. As per Inc42 data, Indian startup funding fell to 2020 levels in the first 10 months of 2023. Indian startups raised $8.3 Bn during January-October 2023, similar to $8.7 Bn raised by startups in the same period in 2020.

Despite this, investors continue to launch India-focused funds to invest in startups. New funds worth over $5 Bn were launched in the first three quarters of 2023 to pump capital into Indian startups, as per Inc42.