IIM Ahmedabad's Centre for Innovation Incubation and Entrepreneurship (CIIE) has got approval from market regulator Sebi for its Bharat Innovation Fund as category-I venture capital fund under the AIF (Alternative Investment Fund) norm.The Rs.1,000-crore fund, which is targeting a first close of Rs.200-300 crore by June, will invest in technology-enabled enterprises in areas like sustainable energy, healthcare and digital technology.
Bharat Innovation Fund is a public-private-academia partnership set up by CIIE. The main target is to provide support and fund innovation-driven startups that solve real problems faced by the masses of India through technology-enabled and rapidly-scalable solution.
In September 2015, Prime Minister Narendra Modi, during his US visit had announced the launch of $150-million fund at the India-US Startup Konnect, on the side-lines of his visit to the Silicon Valley.
“We have received the necessary approval from Sebi, after the close of the first fund we can start investing," said an official from CIIE.
As per the statutory requirements, the investment in startups can begin within 18 months or after raising at least Rs.50 crore, whichever is earlier. As per the regulatory approval, the fund can raise up to Rs.500 crore as base fund and if there is still interest of investors to fund more, another Rs.500 crore can be raised via green-shoe option.
Until now, the fund has received letter of intent (LoI) from major insurance companies for investments. “We are awaiting confirmation from few more players," said the official. Earlier, Department of Biotechnology (DBT) and Biotechnology Industry Research Assistance Council (BIRAC) pledged to participate in the Bharat Innovation Fund (Bharat Fund).
The DBT had committed to invest Rs.50 crore over the next three years to support startups through this fund.
“India needs disruptive ideas and technologies to revolutionise the lives of the masses. Tata Trusts believes entrepreneurship is one of the more effective means of creating scalable solutions and we are delighted to be a partner in the Bharat Fund," said Ratan Tata, Chairman, Tata Trusts as per the press statement issued in 2015.
Tata Trusts is a founding partner of the Bharat Fund.
“India needs disruptive ideas and technologies to revolutionise the lives of the masses. Tata Trusts believes entrepreneurship is one of the more effective means of creating scalable solutions and we are delighted to be a partner in the Bharat Fund," said Ratan Tata, Chairman, Tata Trusts as per the press statement issued in 2015.
Tata Trusts is a founding partner of the Bharat Fund.
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