India’s ₹1 trillion Research, Development and Innovation Fund approaches its initial rollout, with nearly 20 venture capital firms set to be appointed as fund managers, amidst application delays and high competition among applicants.
India’s ₹1 trillion Research, Development and Innovation Fund is moving towards its first major rollout, with the government expected to name nearly 20 venture capital firms as second-level fund managers later this month, according to Business Standard and sources familiar with the process. A second cohort is likely to follow in October or November, as the scheme begins to convert a long application pipeline into selected managers.
The first slate is expected to include several established firms such as IvyCap Ventures, Speciale Invest, Chiratae Ventures and Kalaari Capital. Business Standard said the government received close to 200 applications for the role, with about 80% coming from venture capital firms. Other applicants are understood to include Mela Ventures, 3one4 Capital, All In Capital, Celesta Capital, Wyser Capital, pi Ventures, Translation Endeavors, AdvantEdge, Sixth Sense Ventures, Ideaspring Capital and Blume Ventures.
The fund was launched last year and is intended to support research, development and innovation-heavy businesses by backing managers that can deploy capital into deep technology and related sectors. Under the scheme, the government can commit as much as 50% of an approved fund and take a limited partner position. The selection process is being run through quality and cost-based selection, with greater weight given to a manager’s ability to support scaling and invest in RDI-intensive companies than to fees and other costs, according to the report.
The shortlisted firms bring sizeable track records. IvyCap Ventures says it manages more than $650 million and has backed more than 65 companies, while Chiratae Ventures says it has over $775 million in assets under management and has invested in more than 85 companies. Kalaari Capital describes itself as an early-stage, technology-focused firm. Yet some applicants have criticised the pace of the process. Aditya Singh, partner and cofounder at All In Capital, wrote on social media that applications had been pending for eight to 10 months and complained about the lack of clarity, underscoring the tension between the scheme’s innovation focus and the speed at which capital is being deployed.
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