News Update
SIDBI Plans Rs 5,000 Crore Rights Issue for Business Growth
-
ByStartupStory | March 12, 2024
SIDBI announces plans to raise Rs 5,000 crore through a rights issue in the upcoming fiscal year to support business growth, according to its chairman and managing director S Ramann. The bank, a key player in SME finance, requires additional capital to sustain its robust credit growth.
“The refinancing entity for SME finance is witnessing strong credit growth, and to further grow the business, capital would be required,” stated Ramann during the launch of a credit programme for Jan Aushadhi Kendras.
Ramann revealed that the government, SIDBI’s largest shareholder, has been approached to participate in the rights issue. The Government of India holds a 20.85% stake, while entities like State Bank of India and Life Insurance Corporation of India (LIC) own significant shares.
Regarding the loan portfolio, Ramann mentioned that SIDBI’s loan book is nearing Rs 5 lakh crore and anticipates it to reach around Rs 5.2 lakh crore by the end of the fiscal year.
Currently, SIDBI accounts for 17% of the total loans disbursed to MSMEs in India, showcasing its significant role in supporting the sector.
Ramann also highlighted the impact of the Fund of Funds for Startups (FFS), stating, “The Fund of Funds for Startups (FFS) has committed Rs 9,500 crore for the promotion of new ventures in the country.” The FFS initiative, launched in 2016, aims to support innovation-driven enterprises by facilitating funding through SEBI-registered Alternative Investment Funds (AIFs).
He further added, “The commitment of Rs 9,500 crore has led to over 100 AIFs raising Rs 56,000 crore more,” underscoring the success of the FFS initiative in mobilizing funds for startups.
Also Read
-
-
Clean-label food brand Anveshan has raised Rs 150 crore (nearly $16 million) in a Series B funding round led by Vertex Ventures Southeast Asia & India. The round also saw participation from International Finance Corporation (IFC), Swiggy co-founder Sri Harsha Majety, and existing investors including Wipro Consumer Care Ventures, Titan Capital Winners Fund, Force Ventures, and boAt co-founders Aman Gupta and Sameer Mehta. Entrackr had exclusively reported the development last week. According to Entrackr’s estimates, the funding valued the company at over $90 million. The fresh capital will be used to strengthen manufacturing capabilities, accelerate product development, expand offline distribution, and deepen its digital presence. The company also plans to invest in sourcing infrastructure, procurement systems, quality assurance, and testing capabilities while expanding partnerships with micro entrepreneurs and traditional producers. Founded in 2020 by Kuldeep Parewa, Akhil Kansal, and Aayushi Khandelwal, Anveshan sells minimally processed food products including A2 bilona ghee, cold-pressed oils, raw honey, atta, and other traditional nutrition-focused products. The startup operates through a network of rural producers and micro entrepreneurs across the country. Anveshan claims to be operating at an annual revenue run rate of Rs 280-300 crore and is targeting Rs 1,000 crore in revenue over the next 24-30 months. The company plans to expand its atta portfolio, strengthen its owned digital channels, scale offline distribution, and continue investing in product innovation. For the fiscal year ended March 2025, Anveshan reported a 64.6% increase in operating revenue to Rs 77.08 crore from Rs 46.84 crore in FY24. Its losses widened to Rs 11.88 crore in FY25 from Rs 5.74 crore in the previous fiscal year....
Follow Startup Story
