Small Industries Development Bank of India (Sidbi), Punjab National Bank (PNB) and Union Bank of India are coming together to launch the SMF Growth Fund - a new venture capital
fund with a corpus of Rs 500 crore - dedicated to the small-and medium-sized enterprise (SME) sector.
The eight-year life fund is being established with the objective of meeting the long-term risk capital requirement of innovative and technology-oriented units in this sector. The fund will invest in domestic SME units with growth potential, rapid scalability, strong and committed
team and sustainable long-term competitive advantage.
The fund will identify unlisted SME entities in various growing sectors. Apart from formal commitment of Rs 225 crore so far from Sidbi, PNB and UBI, several other nationalised banks are also expected to participate in the fund, an official release said.
