NEDFi Launched $15 Mn Fund For North East Startup
Good News for North East Startup
Recently, North Eastern Development Finance Corporation Ltd. has launched $15 Mn fund for the startups. The venture capital intends to boost up the entrepreneurship network in the NE region. Eight states are included in the North East province such as Arunachal Pradesh, Manipur, Assam, Meghalaya, Nagaland, Mizoram, Sikkim, and Tripura. NEDFi has also signed an MOU with the Ministry Of Development Of North Eastern Region.
Key Areas of Focus
The primary focus will be on growth stage startups like in IT/ ITES, Healthcare, Food processing, Tourism, Aggregation of Services, and Retail. As per the local media reports, the focus of investing funds would be also in the areas like the technological upgrade, development of services and new products, expansion or diversification, quality improvement and process improvement with the purpose of forming value for all stakeholders.
Sources of Funds
According to the press statement, B. Paul Muktieh, Managing Director & Chairman of NEDFi stated that NEDFI will provide INR 30 Cr while as the DoNER ministry will contribute INR 25 Cr to the fund amount. In addition to this, the rest INR 25 Cr will be elevated from some other financial organization. Moreover, in case other financial institutions will not be able to provide necessary then NEDFi will add the balance amount also. The operations of funds will be managed by NEDFi under two utterly owned contributory companies, NEDFi Venture Capital Ltd and NEDFi Trustee Ltd. These companies are supposed to be launched in the October this year, once it gets the SEBI approval.
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