Self Reliant India fund commits Rs 5,000 crore to fund MSMEs | The Financial Express

Self Reliant India fund commits Rs 5,000 crore to fund MSMEs

Credit and Finance for MSMEs: SRI fund is a SEBI-registered Alternative Investment Fund (AIF) that operates through the mother-fund and daughter-fund structure wherein SRI fund, as a mother fund, invests up to 20 per cent of the overall corpus of daughter fund (mostly VC and PE funds) and the latter raises the balance 80 per cent of the capital from outside sources.

Self Reliant India fund commits Rs 5,000 crore to fund MSMEs
"Almost Rs 300 crore of the SRI fund has already been deployed by the daughter funds in 125 MSMEs and we plan to invest around Rs 1,000-1,200 crore more in the next 12 months," said Suresh Kozhikote, Managing Director and CEO, SBICAP Ventures.

Credit and Finance for MSMEs: The Self Reliant India (SRI) fund, launched by the government of India to provide growth capital to MSMEs, has committed to deploy Rs 5,000 crore, almost 50 per cent of its total corpus, in 38 private equity (PE) and venture capital (VC) firms, Suresh Kozhikote, Managing Director and CEO, SBICAP Ventures told FEAspire. 

“Each fund will get an average of Rs 100-150 crore, however its deployment will happen over time as the PE funds have an investment period of 5-6 years so they will apply for the SRI fund as and when they find suitable companies to invest in,” he said. 

Also Read: 2022 FIFA World Cup: This Indian MSME is supplying power transformers for the soccer event in Qatar

SRI fund is a SEBI-registered category-II Alternative Investment Fund (AIF) that operates through the mother-fund and daughter-fund structure wherein SRI fund, as a mother fund, invests up to 20 per cent of the overall corpus of daughter fund (mostly VC and PE funds) and the latter raises the balance 80 per cent of the capital from outside sources. SBICAP Ventures, owned by the State Bank of India Group, is the investment manager of the fund. 

“Almost Rs 300 crore of the SRI fund has already been deployed by the daughter funds in 125 MSMEs and we plan to invest around Rs 1,000-1,200 crore more in the next 12 months,” Kozhikote said. 

The daughter funds empanelled with SRI fund include TATA Capital Healthcare Fund, Aavishkaar India Fund, SVL-SME Fund, Gaja Capital India Fund, Avaana Sustainability Fund, ICICI Ventures’s India Advantage Fund S5 I, Omnivore Agritech and Climate Sustainability Fund 3, Fireside Ventures Investment Fund III, Nab Ventures Fund 1, Maharashtra Defence and Aerospace Venture Fund among others.

Also Read: SIDBI’s 59-min loan scheme: MSME loans jump 3.2% only YoY as of Nov; disbursals up 2.6%, shows govt data 

Gaurang Dixit, Chairman of NSIC Venture Capital Fund (NVCFL) said, “An increased capital pool will definitely help enterprises reach their full potential and graduate beyond the MSME bracket and become national and international champions.” NVCFL, a wholly-owned subsidiary of The National Small Industries Corporation Limited (NSIC), is the implementing agency of the SRI fund.

A technology platform is also being launched to enable the daughter funds to apply for investment online from the SRI fund allowing streamlining of the operations and seamless data flow between the two entities. 

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First published on: 07-11-2022 at 11:12:29 am
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