The government has invested Rs 2.57 billion under the Electronics Development Fund (EDF) in eight daughter funds, which have in turn provided financial support to 128 startups and companies, according to the minister of state for electronics and information technology.
Daughter funds are specialised investment vehicles or sub-funds that receive capital from a larger parent fund or government-backed entity to invest in specific sectors, startups, or micro, small and medium enterprises (MSMEs).
The EDF was set up as a fund of funds to invest in daughter funds, providing risk capital to companies developing emerging technologies in the areas of electronics, nano-electronics, and information technology (IT). The investments have been made in firms located across 12 cities.
Further, the largest share of investments has gone to firms in Bengaluru (88), followed by seven each in Hyderabad and Kerala, six each in Delhi and Chennai, four each in Mumbai and Pune, two in Gurugram, and one each in Faridabad, Jaipur, Kolkata, and Noida.
