SIDBI, being an apex development finance institution, has been addressing the key requirement of availability of capital to Start-ups for the past more than two decades through supporting / subscribing to various venture capital funds / Alternative Investment Funds (AIFs) and ensuring that the support reaches the Start-ups to promote scalable models to grow unhindered. SIDBI has committed cumulatively more than ₹4100 crores to over 110 funds under its Fund of Funds operations.
In recognition of the efforts made by SIDBI in the venture capital ecospace, Ministry of Commerce & Industry, Government of India entrusted the management of Fund of Funds for Startups (FFS) with a corpus of ₹10,000 crore to support various Alternative Investment Funds (AIFs), which in turn would invest twice of SIDBI’s contribution in start-up businesses.
Ministry of Micro, Small and Medium Enterprises also entrusted SIDBI with the management of ASPIRE Fund with corpus of ₹310 crore to support various AIFs, which in turn would invest twice of SIDBI’s contribution in various MSME / startup businesses, including rural and agro space
India Aspiration Fund set up SIDBI with the support of RBI pursuant to a budget announcement is an ₹2000 crore fund introduced by SIDBI with a vision to promote and accelerate equity and equity linked investments in Start-ups and MSMEs. IAF contributes to the corpus of SEBI registered Alternative Investment Funds (AIFs), with sector agnostic investments specifically involving MSMEs as key strategic investment sectors.