Indian government, NBFC launch $15m venture fund
The Indian government and an associated non-banking finance company (NBFC) have launched a INR1 billion ($15 million) venture fund to support start-ups in the country’s northeast.
The Ministry of Development of the North Eastern Region will contribute INR450 million while North Eastern Development Finance Corporation (NEDFi) will commit a further INR300 million. The balance of the targeted corpus will be met by NEDFi if sufficient support from other financial institutions is not forthcoming.
"The investment focus of the venture fund will be in early and growth stage investments mostly in the fields of IT and ITES [IT enabled services], food processing, healthcare, tourism, retail and aggregation of services," B. Paul Muktieh, chairman and managing director of NEDFi said, according to The Economic Times. The vehicle will be managed by NEDFi Trustee and NEDFi Venture Capital, subsidiaries of the NBFC.
NEDFi invests in businesses of all sizes aimed at setting up industrial, infrastructure and agriculture related projects in India's northeastern states. Shareholders include a number of Indian banks and Life Insurance Corporation of India as well as Singapore sovereign wealth fund GIC and its subsidiaries.
India's NBFCs have become an increasingly prominent part of the country's financial sector as domestic economic growth has created a stream of lending opportunities among large companies. Private equity interest has been tied to NBFCs' ability to identify and access investment channels in underserved populations.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.