SIDBI to focus on women-led startup funds

Mumbai, May 19 (KNN) Small Industries Development Bank of India (SIDBI) has said it will emphasis more on the inclusion of women-led funds and impact funds under its Funds for Startups (FFS).

Through FFS the primary financial institution for MSMEs has pledged more than Rs. 7,225 crores to around 86 Alternative Investment Funds (AIFs).

It has also allowed PE-VC investors to claim a greater share of profits by accelerated drawdowns of the FFS's money and reap higher fees.

The fund of funds for startups (FFS) was introduced in 2016 for contribution to various alternative investment funds (AIFs) registered with the capital market regulator, SEBI and is run by the state-controlled SIDBI.

According to the industry, the SIDBI notification is a change in a positive direction which will help Indian PE, VC investors in achieving an annual investment of over USD 50 billion by 2025.  (KNN Bureau)