Industry experts have observed that foreign venture capital (VC) worth US$1.5-2.0 bn (Rs 10,000 crore) from Sidbi's SSI Fund will bolster small companies in the country this year.
"About US$1.5-2.0 bn are expected to be invested by private equity funds this year. Many new players are entering the country," Ajay Relan, Citigroup Venture Capital India head said, at the Nasscom-SME forum on Thursday.
Citigroup's venture fund alone plans to invest about US$100-200m in start-ups. The group has so far invested US$200m so far in equity of small companies, he said.
Other funds like ChrysCapital are also eyeing India as a potential investment destination.
In 2003, the country witnessed a slump in venture funding at US$530m compared to US$1.1bn in 2002.
Apart from foreign equity funds, Small Industries Development Bank of India (SIDBI) has started lending money to small companies from the newly set up SSI Fund.
