Startups in Odisha: The Startup Odisha programme by the MSME Department of the Odisha government on Wednesday launched a Rs 100 crore Odisha Startup Growth Fund (Fund of Funds) in collaboration with Small Industries Development Bank of India (SIDBI). According to a statement by SIDBI, the state government would replenish the fund once the Rs 100 crore corpus is allocated.
SIDBI will serve as the fund manager for the new fund and will be responsible for framing the investment strategy and managing the fund’s portfolio. The fund will invest in startups of Odisha over five years through Alternative Investment Funds (AIFs).
“We are extremely glad to be working with Startup Odisha and support the growth of Odisha’s startup ecosystem. Through financial support and guidance, we will empower startups to thrive as well as make significant contributions to Odisha’s economic landscape. SIDBI’s own fund will add another layer to our efforts, setting the stage for the state to become a startup funding hotspot in the next 5-10 years,” said S. Ramann, Chairman and MD, SIDBI.
Launched in 2016, Startup Odisha is an initiative of the Odisha government to support 5,000 startups in the state by 2025. Odisha currently has over 1,700 startups, including more than 600 women-led enterprises.
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Odisha Startup Growth Fund (OSGF) operates a Fund-of-Funds vehicle to invest in state startups through a centralized tracking and implementation mechanism. The nature of the investments from the fund will be based on equity and quasi-equity.
Anu Garg, IAS Development Commissioner cum Additional Chief Secretary, said, “Our endeavour through the launch of Odisha Startup Growth Fund is to make Odisha the preferred destination for entrepreneurs. Odisha is fostering a supportive ecosystem that encourages creativity and collaboration, making it the perfect place for entrepreneurs to turn their visions into reality while contributing to the state’s economic growth.”
Earlier this year, Odisha’s MSME Department had also announced the launch of an online portal AIM 2.0 for faster and transparent administration of incentives under various industrial promotion policies for MSME units in the state.