New Delhi, July 29 (SocialNews.XYZ) The government's Electronics Development Fund (EDF) has helped channel investments worth Rs 1,335.77 crore into 128 startups and companies engaged in Electronics System Design and Manufacturing (ESDM) and Information Technology (IT), according to an official statement on Wednesday.
The Electronics Development Fund -- set up by the Ministry of Electronics and Information Technology (MeitY) as a Fund of Funds -- has invested Rs 257.77 crore in eight SEBI-registered venture capital funds, known as 'daughter funds', as of June 30.
These Daughter Funds have, in turn, invested Rs 1,335.77 crore in 128 startups and companies to support innovation, indigenous technology development and intellectual property (IP) creation in the electronics and IT sectors.
According to the government, the selection of startups for investment was based on factors such as innovation capability, indigenous technology development, IP creation potential, technical expertise of the founding team and the scalability of the business model.
Canbank Venture Capital Funds Ltd. (CVCFL) serves as the fund manager for the EDF, while MeitY is the anchor investor.
Of the 128 companies supported, 77 operate in the ESDM sector and 51 in the IT sector.
State-wise, Karnataka accounted for the highest number of investments, with 90 companies, including 89 in Bengaluru, followed by Telangana, Maharashtra, Tamil Nadu and Delhi.
The Daughter Funds have leveraged EDF's investments to raise nearly five times the capital from the market, while the startups supported under the programme have collectively raised about Rs 22,553.82 crore, according to the government.
The startups backed by the fund have also created or acquired 373 intellectual properties, reflecting the programme's focus on innovation and technology development.
The fund manager regularly monitors the performance of the Daughter Funds, which in turn assess the operational efficiency, market growth and technology development of the companies they have invested in.
The government said the EDF completed its investment phase in February 2024 and is currently in the divestment phase.
Source: IANS
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