Small Industries Development Bank of India (SIDBI) has cleared $140 million (Rs 930 crore) from the $302 million (Rs 2,000 crore) fund-of-funds that was launched in August to support venture capital funds.
SIDBI’s India Aspiration Fund would invest in venture capital funds for meeting the equity requirement of MSME start-ups. It has screened 30 venture capital funds since its launch by Arun Jaitley and has already issued sanction letters to more than half of them.
Commenting on the development, Kshatrapati Shivaji, SIDBI’s Chairman and Managing Director said, “Proposals from 24 venture capital funds for an aggregate commitment of Rs 930 crore have been cleared in principle by the venture capital investment committee (VCIC) so far, out of which sanction letters have already been issued to 16 VCFs with an aggregate commitment of Rs 482 crore, where documentation is in progress.”
Shivaji maintained that the support under fund-of-funds operations is sector and stage-agnostic. It has been extended to funds which are focused on seed, early and growth-stage startups as well as social ventures.
Also, more than a dozen proposals have been lined up for a further potential commitment of around Rs 500 crore for the consideration of VCIC, a panel of experts in various segments who are advising SIDBI for venture funds. The panel includes Saurabh Srivastava, TV Mohandas Pai, Sanjeev Bikchandani, Kiran Karnik, Harkesh Mittal and Vaidyanathan. The panel also also includes two senior executives from SIDBI.
Among the venture funds SIDBI has supported through IAF are Blume Ventures, Orios, Yournest, Ivy cap and Infuse Ventures. Putting forth an opinion on the matter, Mohandas Pai said that the fund-of-funds has an ability to create a huge impact in the future as it is aimed at supporting early-stage and seed-funding stage startup.