MUMBAI, May 10: State-run Sidbi and Maharashtra Government have set up a Rs 200-crore venture capital fund, with a view to providing easy financing options to Micro, Small and Medium Entrepreneurs (MSMEs), which traditionally face hurdles in formal sources of funding.
"We have set up a separate fund, the Rs 200-crore Sidbi Social Venture Fund, to enable MSMEs in the state easy access to financing. The aim is to invest in firms to create a social impact on the common man," Sidbi (Small Industries Development Bank of India) Venture Capital Managing Director and Chief Executive Officer Ananta Sarma told PTI.
While the state has committed to contribute Rs 75 crore towards the fund, the rest will be raised from banks and other financial institutions.
"We will soon register the fund with the Securities and Exchange Board (Sebi), post which we will start raising fund," he said, adding the fund will invest up to Rs 25 crore in the MSMEs.
"The investment will be in the form of equity and we will have a share in the firm and also take risk along with the entrepreneur," Sarma added.
Meanwhile, Maharashtra has also decided to come up with a dedicated industrial policy for MSMEs to provide them all the necessary incentives and facilities setting up of their businesses in the state.
