Bhubaneswar 16 /9/23; Startup Odisha, an initiative of the MSME Department today launched a one-of-its-kind Rs 100 crore Odisha Startup Growth Fund (Fund of Funds) with Small Industries Development Bank of India (SIDBI) as the fund manager.
This fund is truly unique due to its perpetual nature. When the initial corpus of Rs 100 crore gets exhausted, the state government would consistently replenish the fund, ensuring continuous, long-term support for startups.
SIDBI will serve as the fund manager for the Odisha Startup Growth Fund (Fund of Funds), responsible for shaping its investment strategy and managing its portfolio, officials said.
Established by the Government of Odisha as part of its Fund of Funds initiative, the OSGF is dedicated to investing Rs. 100 crores over five years through Alternative Investment Funds (AIF) in Odisha-based startups. This collaboration is set to play a crucial role in bolstering the MSME sector, which contributes 33% to India’s GDP and generates over 120 million jobs, they said.
On this occasion, Development Commissioner Anu Garg said, “Our endeavour through the launch of Odisha Startup Growth Fund is to make Odisha the preferred destination for entrepreneurs. Odisha is at the cusp of transformational change and the Government of Odisha aims to extend its support to initiatives like this that help the citizens of this state to grow.”
“Together, we are paving the way for innovation to flourish, startups to thrive, and the MSME ecosystem to grow even stronger. In this dynamic environment, Startup Odisha is adding to the inclusiveness of the Odisha growth story,” she said.
Executive Chairman of Startup Odisha, Omkar Rai, said, “The launch of Odisha Startup Growth Fund marks a pivotal moment in our mission to foster a vibrant startup ecosystem in Odisha. We are dedicated to providing our State’s startups with the essential financial backing required for their growth.”
This fund symbolizes our unwavering commitment to nurturing innovation, catalysing job creation, and propelling our startups to succeed both at the national and global levels, he said, adding, “We are crafting a future where Odisha would be recognized as a beacon of entrepreneurial excellence.”
Chairman & Managing Director of SIDBI, S. Ramann, said, “Through financial support and guidance, we will empower startups to thrive as well as make significant contributions to Odisha’s economic landscape.”
This partnership 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. SIDBI is aiming to continue to act as a catalyst to mobilise domestic capital for the country’s startup ecosystem, he said.
MSME Principal Secretary Saswat Mishra said the Fund will support the development of the entrepreneurial ecosystem in the state.
“We are committed to financially enable startups in Odisha with conducive policies and funds. Startup Odisha along with SIDBI will be working towards disbursing the funds to high-potential startups”, Mishra said.
Odisha Startup Growth Fund (OSGF) operates as a Fund-of-Funds Vehicle, designed to offer co-investment assistance along with a centralized tracking and implementation mechanism. The predominant financial instruments utilized by OSGF prioritize equity or quasi-equity investments, reflecting its commitment to nurturing long-term growth and sustainability within the startup ecosystem