The Electronics Development Fund (EDF) has allocated Rs 257.77 crore to eight Daughter Funds that have backed technology startups and generated over 23,600 jobs in India, as stated by the government. These Daughter Funds supported by the EDF have invested Rs 1,335.77 crore in 128 startups and ventures, resulting in the creation or acquisition of 368 intellectual properties (IPs), according to an official announcement. The EDF typically holds a minority stake in each Daughter Fund, promoting increased private investment and professional management of funds. The startups receiving support operate in cutting-edge fields such as Internet of Things (IoT), Robotics, Drones, Autonomous Vehicles, HealthTech, Cyber Security, and Artificial Intelligence and Machine Learning, positioning India as a center for advanced technological innovation.
Of the 128 supported startups, Daughter Funds have exited from 37 investments, yielding returns of Rs 173.88 crore. By facilitating access to risk capital, the EDF has aided startups focused on advanced technologies and has played a role in enhancing domestic design and intellectual property development, as highlighted by the government. Additionally, these Daughter Funds provided risk capital to startups and companies innovating new technologies. Investment Managers of Daughter Funds are granted the flexibility and autonomy to raise capital, invest, and oversee portfolio performance.