Electronics Development Fund Backs 128 Companies, Startups With Rs 1,335.77 Crore

New Delhi, Jul 29 (KNN) The Electronics Development Fund (EDF) has invested Rs 257.77 crore in eight daughter funds, which have further invested Rs 1,335.77 crore in 128 companies and startups, the government informed the Lok Sabha.

Minister of Electronics and Information Technology Ashwini Vaishnaw said the EDF was established as a Fund of Funds to promote market-driven innovation in Electronics System Design and Manufacturing (ESDM).

Daughter Funds Provide Risk Capital to ESDM Startups

The fund invests in professionally managed, SEBI-registered venture funds, known as daughter funds, which provide risk capital to startups and companies developing technologies in ESDM and Information Technology.

As of June 30, 2026, the EDF had invested Rs 257.77 crore across eight daughter funds. These funds have subsequently invested Rs 1,335.77 crore in 128 companies and startups.

EDF Investments Leverage Rs 22,553 Crore in Startup Funding

According to the government, the daughter funds leveraged EDF investments to raise around five times the amount from the market. 

Supported startups have collectively raised around Rs 22,553.82 crore, while 373 intellectual properties (IPs) have been created or acquired by invested startups.

The selection of startups for investment is based on factors including innovation capability, indigenous technology development, potential for IP creation, technical capabilities of the founding team, and scalability and commercial viability of the business model.

CVCFL Manages EDF, MeitY Serves as Anchor Investor

Canbank Venture Capital Funds Ltd (CVCFL) is the fund manager of EDF, while the Ministry of Electronics and Information Technology (MeitY) serves as its anchor investor.

The government said the fund manager monitors the performance of daughter funds, which in turn regularly assess the operational efficiency, market growth and technology development of their portfolio companies.

EDF Focuses on Electronics Innovation and Domestic IP

The EDF was set up as part of the government's efforts to strengthen India's electronics ecosystem and promote innovation, product design and domestic intellectual property creation.

The fund is a close-ended fund and completed its investment phase in February 2024. It is currently in the divestment phase.

(KNN Bureau)