The Small Industries Development Bank of India (SIDBI) has approved about $150 Mn (INR 1,000 Cr.) to 30 venture funds through the government-financed India Aspiration Fund in order to support startups in their early stages.
SIDBI is the principal development financial institution for promotion, financing and development of industries in the MSME sector, and for coordinating the functions of other institutions engaged in similar activities.
“The amount was sanctioned by the SIDBI executive committee from the INR 1,416 Cr. approved by its independent advisory VC investment committee,” said SIDBI chairman and managing director, Kshatrapati Shivaji.
Earlier this month, SIDBI signed a memorandum of understanding with Life Insurance Corporation of India, under which, the government-owned company would contribute 10% of the fund as a co-investor. It will take at least 12 to 18 months for the startups to receive the funds.
Shivaji also mentioned that they got many proposals from funds, out of which 35 proposals were recommended by the VCIC to the executive committee. Besides, they have already approved 30 of the proposals worth INR 1,000 Cr.
The proposals are from venture funds such as IvyCap Ventures, Blume Ventures and Exfinity Venture Partners.