Next Orbit Ventures (NOVF), a Mumbai-based venture capital firm is reportedly in talks with a few UAE investors to raise funds for its $750 Mn plus fund.
As mentioned in an official statement, 18 UAE entities like Mubadala, DP World, Etisalat, Emmar etc., have shown keen interest in investing in this fund and its project. 49% of the commitment is expected from the Government of India (GoI), as NOVF has already been selected as the ‘Daughter Fund’ under GoI’s Electronics Development scheme.
Dubai-based IBMC Financial Professionals Group is the advisor to this second $750 Mn ESDM fund for Gulf Cooperation Council (GCC).
Launched in November last year, the fund is focussed on electronic system design and manufacturing (ESDM) sector including electronic components (semiconductor & active), electronic products (IoT/ solar / LED / health care), semiconductor design services, and electronic manufacturing services.
It aims invest mainly in firms that make semiconductor chips, and solar and LED components. Further, it will also be investing in a strategically important project for India to reduce its electronics imports which can reach $300 Bn from current $90 Bn in 2020.
Ajay Jalan, founder and managing partner at Next Orbit said, “This investment spree in India follows the ‘Digital India’ and ‘Make in India’ programmes of the Government of India which are providing economic, skill development and tax incentives to electronics manufacturing. The project will provide more than 28 Mn jobs in the country and also will be a second source of quality supply of electronic, Led, and solar products which is currently dominated by cheap Chinese products.”