The Small Industries Development Bank of India (SIDBI) has launched the small- and medium- sized enterprise (SME) growth fund, a venture capital fund with a corpus of Rs 500 crore, dedicated to the SME sector.
The fund has an eight-year term and has been established with the objective of meeting the long-term risk capital requirement of innovation and technology-oriented units in this sector, said Mr Ajay Kumar Kapur, CEO of SIDBI Venture Capital Ltd.
So far, SIDBI has tied up around Rs 375 crore for the fund, with participation from banks such as Punjab National Bank, Oriental Bank of Commerce, Bank of Baroda, Union Bank of India and Bank of India. Other banks are also soon expected to join in, he said.
The focus of the fund will be the software, biotech, pharmaceuticals, design, R&D and outsourcing sectors, where venture capitalists (VCs) are evincing an interest, said Mr Kapur.
