Startup Odisha has announced the launch of the Odisha Startup Growth Fund (Fund of Funds). The fund will be managed by the Small Industries Development Bank of India (SIDBI) and is established with an initial corpus of ₹100 crore. The state government has indicated that it will replenish the fund once depleted to maintain consistent support to startups, said a statement.
SIDBI has been tasked with formulating the investment strategy and managing the portfolio for the Odisha Startup Growth Fund. The OSGF, an initiative of the Government of Odisha, aims to channel ₹100 Crores over a span of five years into Odisha-based startups through Alternative Investment Funds (AIF). The step is viewed as a potential bolster to the MSME sector, which presently constitutes 33% of India's GDP and oversees more than 120 million employment opportunities.
Dr. Omkar Rai, Executive Chairman, Startup Odisha, 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 necessary financial backing for their growth. This fund symbolises our unwavering commitment to nurturing innovation and propelling our startups to achieve success both nationally and globally.”
The Odisha Startup Growth Fund will primarily engage in equity or quasi-equity investments, underscoring its focus on long-term startup growth.
Anu Garg, Development Commissioner-cum-Additional Chief Secretary, 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.”
The startup landscape in Odisha is vibrant, with over 1700 startups, including more than 600 women-led ventures. With the support of 15 nodal agencies, 27 incubators, and a central incubation facility named ‘O-Hub', the state provides an impressive 4 lakh sqft of incubation space.
S Ramann, Chairman & Managing Director, SIDBI said, “We are extremely glad to be working with Startup Odisha and support the growth of Odisha's startup ecosystem. 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 country's startup ecosystem.”