Sidbi Venture Capital looks to tap LIC, SBI, PNB for Rs 750 crore New Horizons Fund

KOLKATA: Sidbi Venture Capital, the investment management arm of state-owned Small Industries and Development Bank of India (Sidbi), is stepping on the gas to mobilise investments for a Rs 750 crore-fund that will primarily support startups in the consumption and health and hygiene sectors.

It has initiated talks with Life Insurance Corporation of India and a host of public sector lenders, including State Bank of India, Punjab National Bank, Canara Bank and Bank of Baroda, seeking commitment for the fund, Sidbi Venture’s chief executive SP Singh told ET.

“We aim to complete the mobilisation of funds by end of September. We are working hard on the same. Presentations have been made and the applications are under process,” Singh said.


Sidbi has committed to invest Rs 120 crore in the fund–named New Horizons Fund--which got registered with the Securities & Exchange Board of India last year.

“Our motto is to fund the early growth-stage/mid-stage startup firms in the consumption sector, agro-technology, green technology, drinking water and sanitation,” Singh said. The early-stage companies have been more adversely impacted since investors paused in disbursing funds after the viral outbreak.

According to reports, Indian startups had attracted over $5 billion in 2019. While more than three-fourths of the investment came from abroad, the flow has ebbed this year following the outbreak of Covid-19.


Sidbi Venture Capital has invested in about 125 companies over the past two decades, while mobilising resources from local investors barring a few exception.

Sidbi's earlier funds focused on traditional sectors like textile, micro small & medium enterprises (MSME), software & IT sector and other social sectors. It supported unicorns like Billdesk, StoveKraft, ManthaSystems, Centaur Pharmaceuticals and Caspian Impact Investment, among others.

Since inception in 1999, it has managed seven funds aggregating Rs 1,754 crore. It has made 55 full and partial exits so far from its investments.

According to Sebi rules, Sidbi Venture Capital is also working as the investment manager of five alternative investment funds – Samridhi Fund for investment in microfinance sector, TEX Fund for investment in textile sector, West Bengal MSME VC Fund, Maharashtra State Social Venture Fund and New Horizons Fund.