News Desk

SIDBI Launches SME GROWTH FUND - a Rs. 500 crore Venture Capital fund In Participation With Major Commercial Banks

Small Industries Development Bank of India has launched SME GROWTH FUND, a new venture capital fund with a large corpus of Rs. 500 crore, dedicated to the SME sector. The 8-year life Fund is being established with an objective to meet the long-term risk capital requirement of innovative and technology oriented units in this sector. Venture Funds are recognised globally as the most suitable form of providing risk capital for the growth of innovative and high technology businesses. Innovative SME units are expected to play a catalytic role in the post liberalised economic environment in the country. Keeping in view the level of dispensation of venture finance to the SME thus far, the new Fund with its size of Rs. 500 crore is a significant milestone. It is a unique initiative sponsored by SIDBI jointly with major public sector banks. Besides formal commitment of Rs. 225 crore so far from SIDBI, Punjab National Bank and Union Bank of India, several other major nationalised banks are also expected to participate in the Fund. The entire corpus is expected to be tied up within six months. Duly registered with SEBI as a venture capital fund, the Fund shall invest in domestic SME units having superior growth potential, rapid scalability, a strong committed team and enjoying unique and sustainable long term competitive advantage. The fund will identify unlisted SME entities in various growing sectors such as life sciences, retailing, light engineering, food processing, information technology, infrastructure related to services such as health care, logistics and distributions, etc.

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