The Startup Odisha program, initiated by the MSME Department of the Odisha government, has introduced the Odisha Startup Growth Fund (Fund of Funds) worth Rs 100 crore in partnership with the Small Industries Development Bank of India (SIDBI). According to SIDBI’s statement, once the initial corpus of Rs 100 crore is allocated, the state government will replenish the fund.
SIDBI will act as the fund manager for this newly established fund, responsible for formulating the investment strategy and overseeing the fund’s portfolio. Over the course of five years, the fund will make investments in Odisha-based startups through Alternative Investment Funds (AIFs).
Ramann, Chairman and MD of SIDBI, expressed enthusiasm for the collaboration, stating, “We are extremely glad to be working with Startup Odisha and support the growth of Odisha’s startup ecosystem. Through financial support and guidance, we will empower startups to thrive as well as make significant contributions to Odisha’s economic landscape. SIDBI’s own fund will add another layer to our efforts, setting the stage for the state to become a startup funding hotspot in the next 5-10 years.”
Startup Odisha, initiated in 2016, is an Odisha government initiative aimed at assisting 5,000 startups in the state by 2025. Currently, Odisha boasts more than 1,700 startups, including over 600 women-led enterprises.
The Odisha Startup Growth Fund (OSGF) functions as a Fund-of-Funds mechanism for investing in startups within the state, employing a centralized tracking and implementation system. The fund’s investments will primarily take the form of equity and quasi-equity.
Anu Garg, IAS Development Commissioner cum Additional Chief Secretary, stated, “Our endeavor through the launch of Odisha Startup Growth Fund is to make Odisha the preferred destination for entrepreneurs. Odisha is fostering a supportive ecosystem that encourages creativity and collaboration, making it the perfect place for entrepreneurs to turn their visions into reality while contributing to the state’s economic growth.”
Earlier this year, the Odisha MSME Department had introduced the AIM 2.0 online portal to facilitate faster and more transparent administration of incentives under various industrial promotion policies for MSME units operating within the state.
