Region-specific funds to be raised in collaboration with respective States
SIDBI Venture Capital (SVCL), the wholly owned asset management company and subsidiary of SIDBI, is looking to set up a corpus of Rs. 600 crore across three funds.
While two of the funds will cater to State-specific micro, small and medium enterprises and start-ups in West Bengal and Maharashtra, the third will be an Impact Innovation Fund (IIF) for financing innovative start-ups.
The State-specific funds will be raised in collaboration with the respective State Governments, while the IIF is likely to be co-managed by an international manager, Ananta P Sarma, Managing Director and CEO, SVCL, said.
“Approximately, we will have Rs. 200 crore in each of the three funds. Details on the IIF are still being worked out,” he said. Sarma was speaking on the sidelines of a seminar on the ‘Evolving Healthcare Investment Landscape’ organised by the Confederation of Indian Industry.
SVCL currently has under its fold five funds with a combined worth of Rs. 1,000 crore. Two of the funds — where it invested Rs. 100 crore and Rs. 500 crore — have nearly been divested. These have secured returns (internal rate of returns) to the tune of 16.5 and 15 per cent, respectively.
West Bengal-specific
According to Sarma, one of the funds, dedicated to West Bengal-based MSMEs and start-ups, is expected to be ready over the next six months. West Bengal government will make 50 per cent contribution (or Rs.100 crore) towards this fund.
“We have also asked the WB Government to come up with names of the companies where funding can be sought. In another six month’s time this fund should be ready,” he said.
