Electronics Development Fund-Backed 128 Startups Raise ₹22.5K Cr

Startups and companies that received backing through India's government-backed Electronics Development Fund (EDF) have collectively raised approximately ₹22,553.82 Cr (about $2.7 billion USD), according to a statement made in Parliament by Union Minister of Information and Technology Ashwini Vaishnaw. The EDF has invested ₹257.77 Cr in eight SEBI-registered daughter funds, which in turn have invested ₹1,335.77 Cr across 128 startups and companies in the electronics and IT sectors.

The daughter funds have leveraged the EDF's capital to attract nearly five times that amount from the market. Companies supported by the fund have also created or acquired 373 intellectual properties. Established in 2015 under the National Policy on Electronics, the EDF functions as a fund-of-funds to promote market-driven innovation in electronics design and manufacturing, investing in professionally managed venture capital funds that provide risk capital to startups.

Minister Vaishnaw indicated that the selection of startups by the daughter funds was based on parameters including innovation capability, indigenous technology development, IP creation potential, the founding team's technical prowess, and scalable business models. Geographically, Karnataka attracted the largest share of investments, with 90 companies receiving ₹854.54 Cr through the supported funds. Telangana and Maharashtra followed.

This disclosure comes as the Indian government intensifies efforts to bolster the country's electronics and semiconductor manufacturing ecosystem. Earlier this month, the Union Cabinet approved the second phase of the Indian Semiconductor Mission (Semicon 2.0) with an outlay of ₹1.28 Lakh Cr (approximately $15.5 billion USD), focusing on chip design, manufacturing, packaging, equipment, materials, research, and talent development. A separate ₹62,500 Cr scheme has also been approved to boost domestic mobile phone manufacturing.