SIDBI introduces web-based application system for contribution from Fund of Funds
After President Ram Nath Kovind spoke about the goal of establishing 50,000 startups by 2024, SIDBI has now introduced web-based application system for the VCs to apply for contribution from Startup Fund.
In order to improve turnaround time, Small Industries Development Bank of India (SIDBI), has introduced a web-based application system for contribution from Fund of Funds for Startups (FFS).
The applications for contribution from various Alternative Investment Funds (AIFs) will now be accepted online and the status of the same shall be accessible to applicants, thereby increasing the transparency in the system, said SIDBI in a statement.
The development comes on the back of the recent budget speech of Finance Minister, Nirmala Sitharaman, where she emphasised on the need to encourage startups in India.
The Startup India initiative, launched by the Modi government in 2016, has already disbursed over 30 percent (Rs 3,123.7 crore) of the Rs 10,000 crore corpus that was supposed to be deployed over the 14th and 15th Finance Commission cycles.
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The FFS (Fund of Funds for Startups) was set up at SIDBI, which contributes to various Alternative Investment Funds (AIF). It is registered with the Securities and Exchange Board of India (SEBI), which in turn extends funding support to startups. The government, at the time of launching FFS, had envisioned to create employment for about 18 lakh people.
According to SIDBI data, some of the VCs that have secured funds from FFS include Kae Capital, Orios Venture, Idea Spring, Pi Ventures, IvyCap, TVS Shriram, and others. Sabre Partners, Zephyr Peacock, Avaana Capital, Endiya Partners, and TVS Shriram are few of the VCs that have been sanctioned at least Rs 100 crore from FFS.
A statement from SIDBI said, “The provision of submission of online application shall be on the home page of SIDBI (https://www.sidbi.in/). To begin with the application process, the AIF should create an account, fill in the details and submit the application form online along with the required supporting documents.”
Mohammad Mustafa, Chairman and Managing Director of SIDBI said, “With this introduction, a lot of administrative work is expected to be reduced and it will smoothen the entire process.”
SIDBI is the implementing agency for FFS with a corpus of Rs 10,000 crore on behalf of the Government of India. SIDBI has also undertaken various development initiatives to build a vibrant startups ecosystem. Next month, SIDBI will be celebrating Investors Day to support startups seeking funding via venture capital route.