SIDBI Venture Funds
- Maharashtra State Social Venture Fund (MS Fund)
Maharashtra State Social Venture Fund is an Alternative Investment Fund (“AIF”), established on September 15, 2015 registered with Securities & Exchange Board of India (SEBI) under the SEBI (AIF) Regulations, 2012 as a Category-I AIF under the category of Social Venture Fund.
The Fund’s investment objective is to generate superior returns by investing start-up, early & growth stage capital primarily in MSMEs based in India which would add economic or social or environmental value to the state of Maharashtra.
The primary investment focus of MS Fund is to identify and invest in profitable and scalable business ventures including innovative business model or new products & technologies which would have potential to provide social benefits (economic and/or societal and/or environmental) to the people of Maharashtra.
The investee companies of the Fund are expected to:
- a) be socially relevant;
- b) economically viable and sustainable; and
- c) to provide access to market to the common people as consumers, producers, employees or as entrepreneurs;
The Fund would invest in eligible companies by way of equity (un-listed securities) or convertible instruments with maximum Rs. 25 Crores in One Company for generally 4 to 5 years.
The target sectors for fund’s investment may include, but not limiting to, following sectors:
c) Renewable & Non-Conventional Energy
d) Agri ancillary
e) Food processing
f) Energy efficiency-transmission-distribution
h) Light Engineering
i) Information Technology
j) Medical Devices
l) Water and related technologies
m) Consumption lead sectors
- TEX Fund (TF)
- The primary objective of the fund is to contribute to the development of the powerloom and related textile sectors.The TEX Fund’s investment focus will be early and growth stage investments in Small Enterprises withmaximum cap of Rs. 3 Crores. The Fund shall look for investing in companies involved in new and emerging fields in the textile industry and allied products and services. The TEX Fund would inter alia invest in areas such as development of textile production machinery and automation, technical textiles for various applications, coated textiles, textiles for defence applications, sportswear, weaving and processing. Related products and services such as chemicals and materials also offer scope for venture investment. Innovative marketing is an area which could add value to the country’s textile products.
- India Opportunities Fund (IOF)
- IOF is a sector agnostic fund focused mainly on growth capital needs of India’s growing and unlisted MSMEs operating in emerging sectors such as light engineering, clean-tech, agro-based industries, logistics, infrastructure, educational services, IT/ITES etc.
Key criteria for project selection are –
— Strong and committed core team: The Fund will look for businesses managed by a team with a demonstrated performance track record, commitment and energy.
— Growth potential: The Fund will like to invest in promising businesses having potential for sustainable high growth.
— Long-term competitive advantage: The Fund will prefer to invest in innovative business operations with a sustainable competitive advantage.
— Viable business plan: The venture should have a viable business plan which offers above average profitability leading to attractive return on investment.
— A Clear exit plan: The Fund, being of limited life, will seek to invest in ventures offering a strategy for clear exit within a reasonable time period. The exit could be by way of IPO, offer for sale, merger and acquisition or sale to a strategic or a financial investors.
- SIDBI's other funds include SME Growth and NFSIT being fully invested are not detailed here. SIDBI also runs funds for West Bengal SME industries and Samriddhi Funds, not considered here, being not focusing on Maharashtra,as per their description on SIDBI Website.
SIDBI Venture Capital Limited
10th Floor, Naman Centre,
C-31, G-Block, Bandra Kurla Complex,
Bandra (East), Mumbai - 400 051
Tel No. 91 - 22 - 3947 3200
Fax No. 91 - 22 - 3947 3210