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Fund of Funds for Startups: SIDBI ramps up its startup funding operations

SIDBI

Established :-  April 2, 1990

Headquater :- Lucknow

Aim :-   the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.

Former Deputy Managing Director – Shri N.K. Maini

Chairman and Managing Director :-   Dr. Kshatrapati Shivaji

  • SIDBI has retained its position in top 30 development bank of India . he Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be “the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector.
  • SIDBI has taken the initiative to promote several institutions viz., Credit Guarantee Fund Trust for Micro and Small Enterprises, SIDBI Venture Capital, SME Rating Agency of India Ltd and India SME Technology Services Ltd., for the benefit of the MSME sector.
  • Micro Units Development & Refinance Agency (MUDRA) Bank, an initiative by Government of India to support non-corporate small business, is proposed to initiate it as a unit of SIDBI to benefit from SIDBI’s initiatives and expertise.

Funds of Funds For Startups:- SIDBI ramps up its startup funding operations

  • Everyone are so familiar of the challenges faced by Newly emerging startup of India, though the Idea behind start ups are so innovative concepts but they fail with the major reason of fund, they didn’t have broader choices to make. The Number of startups is growing at an exponential rate and this will be a continuing trend.
  • SIDBI also addresses major challenges being faced by startups in the country at present.

The Small Industries Development Bank of India ( SIDBI) came up with the start-up funding operation with the centre of approving  Rs 10,000 crore.

As per Financial Express – Chairman and Managing Director Dr. Kshatrapati Shivaji said.

SIDBI has ramped up the start-up funding operations to boost ‘Start-up India’ initiative with the launch of funds like unique India Aspiration Fund and Fund of Funds operations,”

Based on drawal of around Rs 1,065 crore, so far from the aggregate commitment, these funds have invested in 714 enterprises with an equity support of Rs 9,520 crore out of which Rs 4,794 crore were invested in 604 MSMEs, a bank statement said.

 The Venture Capital Investment Committee (VCIC) has considered proposals from 16 venture capital funds for contribution under the proposed FFS, the CMD added.

“Out of 16 venture capital funds, SIDBI has already committed Rs 215 crore to 5 venture capital funds with aggregate corpus of Rs 2,200 crore. Contribution to balance 11 venture capital funds are under different stages of sanction, for sanction of Rs 394 crore”

  • This will help enhance the scale of operations under its Fund of Funds and boost ambitious Startup India initiative. The lender has so far supported 95 funds, including 11 regional funds, with an aggregate commitment of Rs 2,576 crore. Under FFS, Rs 500 crore has already been released to the corpus in FY 2016 and Rs 600 crore has been earmarked for FY 2017 by the government.
  • Development of Micro, Small and Medium Industry is the sole reason of SIDBI. They focus on Industrial as well as Service Sector Funding needs of the MSME sector. Their various schemes for Industrial as well as Service Sectors can help to achieve your business objectives.

SIDBI

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