Just recently, the Central Government approved a Rs. 10,000-crore ‘Fund of Funds for Startups’ to support stratups with an aim to generate employment for more than 18 lakh people.
Now with the Centre approving the Fund of Funds for startup, the Small Industries Development Bank of India (SIDBI) has followed suit by beefing up its startup finding operations to boost the sector with the launch of funds like Unique India Aspiration Fund and Fund of Funds operations. The lender has so far supported 95 funds, including 11 regional funds with an aggregate commitment of Rs. 2,576-crore.
The Cabinet has approved the establishment of FFS which will only help enhance the scale of operations under its Fund of Funds activities and boost Ambitious Startup India initiative. SIDBI would be using its expertise built over the years and address major challenges that are being faced by startups these days. Rs. 500-crore has already been released to the corpus in the financial year 2016 and Rs. 600-crore has been earmarked for the financial year 2017 by the government.
A bank statement said that Based on withdrawal of around Rs.1,065-crore from the aggregate commitment so far, these have been invested in 714 enterprises with an equity support of Rs.9,25o-crore out of which Rs.4,794-crore were invested in 604 MSME’s.