The Indian government as part of ‘Make in India’ initiative has launched Rs 2,000 crore India Aspiration Fund For Startups.
IAF is a Fund-of-fund managed by Small Industries development Bank of India (SIDBI) which is India’s Principal Financial Institution for the promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector.
Finance minister, Arun Jaitley also launched the SIDBI Make in India Loan for Small Enterprises (SMILE) Scheme of Rs. 10,000 crore.
Speaking on the occasion, he said that the country is witnessing a start-up revolution and to harness the potential of India’s innovators and entrepreneurs a vibrant financial ecosystem is essential.
The India Aspiration Fund is intended to play a vital role in this financial ecosystem. Arun Jaitley has also mentioned that the Fund is expected to catalyze tens of thousands of crore of equity investment in start-ups and MSMEs, creating employment for lakhs fo persons, mostly educated youth over the next 4-5 years. LIC has also agreed to be a partner and co investor in the India Aspriation Fund.
Plus, as part of the fund, Blume Ventures will receive 30 crores.