SIDBI Releases Impact Study ‘Prabhaav’ on Fund of Funds for Startups

The Small Industries Development Bank of India (SIDBI) has released the impact assessment report of the Fund of Funds for Startups (FFS), a pivotal element of the Start Up India Action Plan initiated by Prime Minister Shri Narendra Modi in 2016. Conducted by CRISIL, a leading analytics company in India, the report, titled “Prabhaav,” underscores the transformative influence of the FFS scheme on the Indian startup ecosystem.

SIDBI Releases Impact Study ‘Prabhaav’ on Fund of Funds for Startups: Key Highlights

1. Multiplying Capital Flow:

• As of November 30, 2023, 129 Alternative Investment Funds (AIFs) have received commitments from the FFS across various segments.
• The scheme has facilitated investments totaling approximately ₹17,534 crore in 938 distinct startups, marking a significant fourfold increase from the initial investment amount.

2. Promotion of Innovation:

• FFS has fostered investments in startups operating in cutting-edge sectors like deep tech, agri/agri solutions, health tech, financial services, and sustainability, thereby promoting innovation across diverse domains.

3. Inclusivity and Diversity:

• The scheme has demonstrated a commitment to inclusivity by directing investments beyond Tier 1 cities, with 129 startups from non-metropolitan areas receiving investments amounting to ₹1,590 crore.
• Notably, there has been a notable rise in support for women-led startups and women-led fund managers, highlighting a concerted effort towards gender diversity and empowerment within the startup ecosystem.

4. Unicorn Nurturing:

• Despite primarily focusing on early-stage funding, FFS has facilitated the growth of 18 startups into unicorns, indicating its role in nurturing high-potential ventures and fostering their scalability.

5. Strengthening Governance and Wealth Creation:

• The scheme has contributed to the enhancement of governance standards within startups while also fostering wealth creation opportunities for investors and entrepreneurs alike.

Presentation and Acknowledgment:

• The report was presented by Shri S. Ramann, Chairman & Managing Director of SIDBI, and Shri S P Singh, CGM Venture Finance, to key dignitaries including Dr. Vivek Joshi, Secretary of the Department of Financial Services, Ministry of Finance, Government of India, and Shri Rajesh Kumar Singh, Secretary of DPIIT, among others.