Odisha launches Rs 100 Cr startup growth fund with SIDBI
SIDBI will serve as the fund manager for the Odisha Startup Growth Fund (Fund of Funds), responsible for shaping its investment strategy and managing its portfolio.
Startup Odisha, an initiative of the MSME Department of the Government of Odisha, has launched a Rs 100 Crore Odisha Startup Growth Fund (Fund of Funds), with Small Industries Development Bank of India (SIDBI) as the fund manager.
The state government will consistently replenish the fund to ensure continuous and long-term support for startups after the initial corpus of Rs 100 crore gets exhausted, the body said in a statement on Saturday.
SIDBI will serve as the fund manager for the Odisha Startup Growth Fund, responsible for shaping its investment strategy and managing its portfolio. Established by the Government of Odisha as part of its Fund of Funds initiative, the fund is dedicated to investing Rs 100 crore over five years through Alternative Investment Funds (AIF) in Odisha-based startups.
The collaboration is set to play a crucial role in bolstering the MSME sector, which contributes 33% to India's GDP and generates over 120 million jobs, the statement said.
The fund is designed to offer co-investment assistance along with a centralised tracking and implementation mechanism. The predominant financial instruments utilised by the fund will prioritise equity or quasi-equity investments, reflecting its commitment to nurturing long-term growth and sustainability within the startup ecosystem, according to the statement.
Odisha is home to over 1,700 startups, including more than 600 women-led enterprises. The ecosystem is supported by 15 nodal agencies, 27 incubators, and a centralised incubator ‘O-Hub’ that provides an impressive 4 lakh sq ft of incubation space.
"We are dedicated to providing our state's startups with the essential financial backing required for their growth. This fund symbolises our unwavering commitment to nurturing innovation, catalysing job creation, and propelling our startups to succeed both at the national and global levels. We are crafting a future where Odisha would be recognised as a beacon of entrepreneurial excellence," Omkar Rai, Executive Chairman of Startup Odisha, said.
Edited by Kanishk Singh