Welcome to IFCI Venture Capital Funds Ltd., the venture capital subsidiary of IFCI Ltd.IFCI Ltd., as you would be aware, is India’s first Development Financial Institution (DFI) which was established under an Act of Parliament in 1948 and has played an active role in the economic development of the country. IFCI Venture was set up in 1975 with the objective to broaden entrepreneurship base in India by providing risk capital mainly to first generation entrepreneurs under “Risk Capital Scheme”.
IFCI Venture is presently managing 5 SEBI-registered private equity (PE) funds/ Alternate Investment Funds (AIF) viz. India Automotive Component Manufacturers Private Equity Fund-1-Domestic (IACM-I-D), Green India Venture Fund (GIVF), India Enterprise Development Fund (IEDF), Venture Capital Fund for Scheduled Castes (VCF-SC) and Venture Capital Fund for Backward Classes (VCF-BC) with an aggregate corpus of Rs.853 crores. Out of the above, 3 funds namely GIVF, IACM-1-D and IEDF are due for closure soon and all efforts are being made for maximising recoveries from outstanding investments.
The “Venture Capital fund for Scheduled Castes” (VCF-SC), is a Government of India initiative of Ministry of Social Justice and Empowerment (MoSJE) for which IFCI Venture is the Investment Manager. VCF-SC is a first of its kind Venture Capital Fund in India dedicated to promote entrepreneurship among the Scheduled Castes by providing concessional finance to them. As on date the corpus of VCFSC fund stands at Rs 330 crores. Recently, Government of India has mandated IFCI Venture to manage the ‘Venture Capital Fund for Backward Classes’ (VCF-BC) also . The target corpus of this fund is Rs 200 crores. The fund has been initiated with initial corpus of Rs 15 crores.
With a view to tapping further opportunities in PE/ VC space, IFCI Venture is in the process of raising the next round of funds viz. Small & Medium Enterprises Advantage Fund (SMEAF) and Green India Venture Fund II (GIVF-II). The fund raising process for GIVF-II and SMEAF is being undertaken. Another Fund on Affordable Housing is also likely to be launched shortly. These new initiatives are in line with the Government’s “Make in India”, Pradhan Mantri Awas Yojana (PMAY) & Green Initiatives (renewable Energy and clean technology projects).
Being an NBFC, IFCI Venture also extends corporate loans to companies in the range of Rs.5 crore to Rs.25 crore, by raising funds through bank loans and bonds. IVCF has evolved its lending policies to ensure quality business and sanction of secured corporate loans (primarily loans against property and loans against shares) in diversified sectors.