Government-backed SME Fund Neev II To Complete Fundraise Of Rs 2,000 Cr By June

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According to its top executive, Neev II, a government-backed climate and sustainability-focused SME (small and medium enterprise) fund, is on track to meet its final fundraising goal of up to Rs 2,000 crore by June.

Neev II (SVL-SME fund) is in the early stages of talks with a multilateral and a couple of institutional investors. So far, the European Investment Bank (EIB), Japan’s International Cooperation Agency (JICA), the Foreign, Commonwealth and Development Office (FCDO), the Small Industries Development Bank of India (SIDBI), the SRI Fund, and the State Bank of India have all made commitments.

SBICap Ventures, a division of SBI Capital Markets, runs and manages Neev funds. The UK government also supports the fund.

So far, it has invested in four startups: GPS Renewables, emission-control device manufacturer Chakr Innovation, Blue Planet, and Hygenco Green Energies, the most recent of which was in October.

The investment theme of Neev II will centre on sustainable agriculture, waste management, water, the circular economy, electric mobility, and electric vehicles (EVs).

The first fund, Neev I, was a smaller corpus fund that invested Rs 524 crore in 10 companies, with an approximate IRR of 18 per cent in SunSource Energy.

While Neev I’s target IRR (internal rate of return) is 12 per cent, Panth anticipates a return in the mid-late teens by the end of the fund’s term.

The ticket size per transaction in Neev II has been increased to Rs 100-125 crore, up from Rs 40-45 crore in Neev I.



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