IFCI has contributed Rs 50 crore to the fund, of which Rs 5 crore comes as a sponsor and Rs 45 crore as an investor.
Govt along with IFCI launches Rs 200 cr VC fund to support scheduled caste entrepreneurs
The government has recently floated a Rs 200 crore ($32 million) venture capital fund for providing concessional finance to Scheduled Caste (SC) entrepreneurs, a group representing people from socially backward strata in the country.
According to a press release, Thaawar Chand Gehlot, the Union Minister of Social Justice and Empowerment, launched the Venture Capital Fund in New Delhi last week and presented a cheque of Rs 200 crore to Malay Mukherjee, CEO and MD, Industrial Finance Corporation of India (IFCI) Ltd.
IFCI has entrusted its subsidiary IFCI Venture Capital Funds Ltd. as the investment manager of the fund. The assistance under the fund would range between Rs 50 lakh to Rs 15 crore through equity and equity linked debt instruments with a six-year investment holding period. IFCI has contributed Rs 50 crore to the fund, of which Rs 5 crore comes as a sponsor and Rs 45 crore as an investor.
The government said this is a social sector initiative to be implemented nationally to promote entrepreneurship amongst the SCs who are oriented towards innovation and growth technologies. This is to increase financial inclusion for SC entrepreneurs and to motivate them for further growth of SC communities.
It is also intended to enhance both direct and indirect employment generation for SC population in India.