Risk Capital Fund for MSMEs

Risk Capital Fund has been created by GoI for MSMEs within SIDBI. SIDBI has formed an SBU viz. "SIDBI Foundation for Risk Capital" with an objective to develop and operationalise appropriate risk capital products for MSMEs of different size, constitution and in different industry segments. Some of the products introduced are equity/ equity like instruments and mezzanine instruments like optionally convertible debt and sub-ordinate debt for MSMEs. Apart from direct funding by SIDBI, various delivery channels like Banks, VC Funds etc. would be used for providing risk capital to MSMEs