Self Reliant India (SRI) Fund

November 9, 2022

The Indian Government’s Self Reliant India (SRI) Fund committed Rs.5,000 crore in a year.

What is SRI Fund?

Self Reliant India (SRI) Fund is Rs.10,000 crore fund launched by the Indian Government.
It is a SEBI-registered category-II Alternative Investment Fund (AIF) that was launched by the Indian Government to provide growth capital to MSME Sector.
It operates via the mother-fund and daughter-fund (Fund of Funds) structure. The mother fund is the SEBI fund that invests up to 20 per cent of the overall corpus. The daughter fund (mostly venture capital and private equity funds) raises the rest 80 per cent of the capital from the outside sources.
The investment by this fund will get leveraged fivefold, making the total value of the investment capital to MSMEs to Rs.50,000 crore.
The TATA Capital Healthcare Fund, Aavishkaar India Fund, SVL-SME Fund, Gaja Capital India Fund, Avaana Sustainability Fund, ICICI Ventures’s India Advantage Fund S5 I, Omnivore Agritech and Climate Sustainability Fund 3, Fireside Ventures Investment Fund III, Nab Ventures Fund 1, Maharashtra Defence and Aerospace Venture Fund etc., are the daughter funds empanelled with the SRI fund.

Usage of the Fund

In a year since the launch of the fund, more than Rs.2,300 crore has been deployed by daughter funds in more than 125 MSMEs across sectors like agriculture, defence, education, pharma, climate and industrials About 50 per cent of the SRI fund has been committed from the total corpus of Rs.10,000 crore in 38 private equity and venture capital firms. Each fund will get an average of Rs.100 to Rs.150 crore. It will be deployed in a phased and choice-based manner since the PE funds have an investment period of 5 to 6 years. The government is currently planning to invest an additional funding of Rs.1,000 to Rs.1,200 crore in the next 12 months.

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