Small Industries Development Bank of India (SIDBI).

The Samridhi Fund is an approx. ₹430 crore social venture capital fund. SIDBI has envisaged the creation of the Samridhi Fund to provide capital to social enterprises which can deliver both financial and social returns.

Small Industries Development Bank of India (SIDBI).

An approximately 430 crore social venture capital fund, The Samridhi Fund. SIDBI plans to establish the Samridhi Fund to finance social enterprises in Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, Chattisgarh, Jharkhand, Rajasthan, and West Bengal that can provide both financial and social returns.

Scheme Benefits & Highlights:

1.Investments will frequently be made in growth stage businesses that are expanding and that already have a solid business model, an original business model, or products and technology that have the potential to be widely adopted.

2.Through a range of finance tools, including equity and convertible instruments, Samridhi can give businesses expansion cash.

3.Typically, Samridhi offers funding in the region of INR 5 to 25 crore. Samridhi may invest amounts outside of this range in unusual circumstances, particularly where significant developmental impact can be produced.

4.Target sectors includes, but are not be limited to:

5.Water & Sanitation

6.Affordable Healthcare

7.Agriculture & Allied services

8.Clean Energy

9.Financial Inclusion (Including MFI’s)

10.Education

11.Skill Building, etc.

Process:

The funding process typically takes 3-6 months, and involves the following stages:

Go/No Go Decision – based on preliminary review by SVCL and a presentation by the company, a decision will be made by the Investment Committee (IC)

- Detailed appraisal by SVCL team

- Final Investment Committee Decision

- Due Diligence and Documentation

For further details, please click here: http://www.samridhifund.com

Eligibility:

The conditions neccessary for getting funded are as follow:

  • Be economically viable
  • Provide access to markets for the poor
  • Influence the underprivileged as clients, suppliers, or workers through being socially relevant.
  • the above-mentioned states should receive more capital
  • Give attention to issues of governance, social, and the environment.

The enterprises must have plans to expand operations in any or all of the following states- Bihar, Chhattisgarh, Odisha, Uttar Pradesh, West Bengal, Madhya Pradesh, Jharkhand and Rajasthan.

Samridhi will refrain from funding any of the following businesses or activities:

  • Activities that are prohibited or illegal, such as child labour.
  • Businesses that deal with ozone depleting compounds, hazardous chemicals, asbestos, pesticides, garbage, endangered or protected wildlife, or wildlife items.
  • Arms and ammunition
  • Businesses that have been implicated in fraud and wrongdoing.