The Self Reliant India (SRI) Fund, a Rs 10,000 crore Fund of Funds launched by the Government of India, announced on Friday that it has committed more than half of its Rs 10,000 crore corpus in the year since its inception.
According to a statement, the SRI Fund, which began operations in October 2021, has so far committed more than Rs 5,000 crore to 38 daughter funds.
A fund of funds is a pooled investment fund (called the mother fund in this case) that collects money from investors and invests it in other types of funds (daughter fund).
The SRI fund is a Category II Alternative Investment Fund established by the Indian government to make equity investments in Micro, Small, and Medium Enterprises (MSMEs) with the goal of closing the capital gap and catalysing capital flow in the sector.
NSIC Venture Capital Fund Limited, a wholly owned subsidiary of The National Small Industries Corporation Limited, serves as its anchor (NSIC).
“In its first year of operations, SRI Fund has already helped provide equity funding of more than Rs 2,300 crore to more than 125 MSMEs across diverse sectors such as climate, agriculture, defence, education, pharma, and industrials,” said Amitava Chatterjee, MD & CEO, SBI Capital Markets.
The fund is also launching an online technology platform to standardise procedures for daughter funds seeking SRI Fund investment. It will also make interactions between the mother-daughter fund easier, as well as aid in compliance and reporting.
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