With 1,200 startups supported, 22 unicorns created, and ₹2,107 crore invested in Tier-2 and Tier-3 cities, SIDBI’s impact on India’s entrepreneurship landscape is undeniable.
Small Industries Development Bank of India (SIDBI) reaffirmed its pivotal role in shaping India’s startup and MSME ecosystem at the IVCA Conclave 2025. Shri Sudatta Mandal, Deputy Managing Director of SIDBI, addressed a distinguished audience of investors, policymakers, entrepreneurs, and venture capitalists at Trident Hotel, Nariman Point, Mumbai, shedding light on SIDBI’s transformative initiatives and its multi-billion investment in India’s entrepreneurial landscape.
In his keynote speech, Shri Sudatta Mandal emphasized how SIDBI’s financial instruments, equity investments, venture capital support, and debt financing, have fueled India’s startup success story, positioning the nation as the third-largest startup ecosystem in the world.
“Today, India stands at the forefront of global entrepreneurship. Our startup ecosystem, backed by robust policies, innovation, and sustained capital infusion, has seen exponential growth. At SIDBI, we take pride in being a catalyst for this transformation by enabling startups and MSMEs to access essential funding, scale operations, and drive economic progress,” he stated.
SIDBI’s ₹10,000 Crore Fund of Funds: Powering India’s Startup Growth
At the heart of SIDBI’s impact is the Fund of Funds for Startups (FFS), launched in collaboration with DPIIT (Department for Promotion of Industry and Internal Trade), with an initial ₹10,000 crore corpus aimed at strengthening India’s venture capital ecosystem. Shri Mandal revealed that the entire fund corpus was committed by December 2023, well ahead of the March 2026 deadline, marking a historic milestone in India’s domestic investment landscape.
We started with a vision to mobilize domestic capital and reduce India’s dependence on foreign VC funding. Today, the Fund of Funds has not only facilitated ₹91,000 crore in investments but has also created a multiplier effect, ensuring sustained capital availability, Shri Mandal noted.
The success of FFS extends beyond capital deployment, it has played a pivotal role in fostering indigenous investment capabilities. Over ₹2,107 crore has been invested in 177 startups across Tier-2 and Tier-3 cities, enabling startups beyond metropolitan hubs to access funding and scale effectively.
From Emerging Ventures to Unicorns: SIDBI’s Direct Impact on Startup Growth
SIDBI’s investments have directly contributed to the emergence of 22 unicorns, a significant achievement in India’s fast-growing venture capital and startup ecosystem. By bridging funding gaps, facilitating access to equity capital, and partnering with venture capital funds, SIDBI has unlocked new opportunities for high-growth startups in fintech, deep tech, health tech, agritech, and SaaS (Software-as-a-Service).
Moreover, FFS-backed startups have created over 2 lakh direct jobs, highlighting SIDBI’s broader economic impact beyond investments.
Strengthening India’s MSME Sector Through Policy and Financial Innovation
Beyond startups, SIDBI remains a cornerstone for India’s Micro, Small, and Medium Enterprises (MSMEs), a sector that accounts for over 30% of India’s GDP. Through innovative financing models like credit guarantee schemes, priority lending initiatives, and customized financial products, SIDBI has empowered millions of MSMEs across India.
Our mission is to ensure that startups and MSMEs receive the necessary resources, infrastructure, and financial backing to drive sustainable economic growth, Shri Mandal emphasized.
SIDBI has also been instrumental in implementing SIDBI Cluster Development Fund (SCDF), which has enhanced access to credit for SME clusters, fostering competitiveness in sectors like manufacturing, logistics, renewable energy, and digital commerce.
IVCA Conclave 2025: A Hub for Policy, Investment, and Growth
The IVCA Conclave 2025 brought together global and domestic venture capitalists, private equity leaders, policy think tanks, and government representatives, aiming to shape the future of India’s alternative investment landscape. Indian Venture and Alternate Capital Association (IVCA), India’s apex industry body for venture capital and private equity, plays a key role in driving investment policies and advocating for an entrepreneur-friendly regulatory environment.
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