2015-02-11

RBI to allot Rs 2,000 crore for startup fund next year

A seven-year fund-of-funds will be carved out of the Rs 10,000 crore allocation and managed by a nodal bank.

RBI to allot Rs 2,000 crore for startup fund next year

The Reserve Bank of India will allocate Rs 2,000 crore for the government’s proposed startup fund in the next financial year, reports the Economic Times. During the budget presentation in July last year, finance minister Arun Jaitley had proposed a Rs 10,000 crore startup fund to attract private capital by providing equity, quasi equity, soft loans and other risk capital for startups.

The report also mentions that a seven-year fund-of-funds will be carved out of the Rs 10,000 crore allocation and managed by a nodal bank, which is reported to be either ICICI Bank or Small Industries Development Bank of India (SIDBI). The money will be deployed to investment firms that apply for it.

The fund is also reported to have a clause looking to restrict the flight of startups overseas, and venture funds drawing from it to invest the money only in India-registered startups. A government official told ET that the fund will work in a co-investing model whereby VC funds will have to put in 70-90 per cent of the investment and take 20-30 per cent from the nodal bank, but he added that the percentage of government’s contribution is still to be decided.

Related opportunities
  • Car Wash / Ceramic Coating / Detailing
    About Surface Protective Solutions – SPS continues to develop what..
    Locations looking for expansion Maharashtra
    Establishment year 2011
    Franchising Launch Date 2021
    Investment size Rs. 5lakh - 10lakh
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Hingna Maharashtra
  • Casual Dine Restaurants
    Welcome to Ajna. We are so happy and blessed to..
    Locations looking for expansion Gujarat
    Establishment year 2011
    Franchising Launch Date 2016
    Investment size Rs. 30lakh - 50lakh
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Vadodara Gujarat
  • Pharmacies
    Scott-Edil Franchise in India: Founded in February 2022, Scott Edil..
    Locations looking for expansion Chandigarh
    Establishment year 1996
    Franchising Launch Date 2023
    Investment size Rs. 2lakh - 5lakh
    Space required 120
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chandigarh Chandigarh
  • Packaged Food Products
    About Us: The Great ones are the Nature Lovers!!!! Our hundred years..
    Locations looking for expansion Tamil nadu
    Establishment year 2018
    Franchising Launch Date 2016
    Investment size
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Dindigul Tamil nadu
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts

pincode
;
ads ads ads ads