Samridhi Fund: A Complete Guide

Samridhi Fund : A Complete Guide

Government Catalysing Economic Development

Being one of the fastest-growing economies, India has been focusing more on holistic economic development now. The problem now is that the growth is not spread out evenly across all the states of the country. Some of the states are still waiting for the wave of development and growth. The lack of investment and infrastructural development are the reasons behind this. The government is well aware of the states that are left out and require an extra push in order to start moving toward growth and economic development. Now is the high time to make up for this with better resource provision and investment strategies.

What is Samridhi Fund?

Samridhi Fund is a social venture capital fund of approximately ₹430 crore in total that provides the capital in the range of approximately ₹5 to ₹25 Crore depending on the applicant, structured as equity or equity linked instruments and convertible instruments. It is supported by the contribution from the Small Industries Development Bank of India (SIDBI), Department For International Development (DFID), Life Insurance Corporation of India (LIC), and United Insurance Company Limited (UICL). It is under the management and control of SIDBI Venture Capital Limited (SVCL) as a subsidiary of it.

It is directed toward social enterprises that have the potential to generate financial and social returns and leave an impact in the 8 states under focus viz. Bihar, Uttar Pradesh, Madhya Pradesh, Odisha, Chhattisgarh, Jharkhand, Rajasthan, and West Bengal. These enterprises should have certain traits and characteristics like being socially relevant, impacting the poor, should have the potential to increase the capital flow of targeted low-income states, etc to be considered and be applicable for the fund.

Which Are The Targeted Zones?

Samridhi Fund: A Complete Guide | Egniol

SIDBI Samridhi Fund is provided to the MSMEs which are from :

  • Water and Sanitation
  • Agriculture
  • Financial (MFIs included)
  • Building Livelihood
  • Affordable Healthcare
  • Clean Energy
  • Green technology
  • Education
  • Skill building

What Are The Criterias For Investment?

There are certain criterias for social enterprises and companies which are considered for providing investment.

● The companies which have the potential to leave a developmental impact on the targeted states.
● SIDBI Samridhi Fund focuses on initial-stage investments for the targeted beneficiaries from the 8 states mentioned earlier.
● Established companies are also considered for the fund if it has an excellent working model and generates employment.
● Companies that elevate the overall living conditions and lifestyle of the eight targeted states.

Samridhi Fund Scheme Benefits

Samridhi Fund: A Complete Guide | Egniol

Samridhi Scheme aims to provide advantages to the MSMEs that are in alignment with the development of the poorly targeted states. There are numerous benefits that an enterprise can avail from SIDBI Samridhi Fund such as:

● If your innovative business venture has the potential to gradually transform into a mega provider of financial returns and employment, then it can get much-needed assistance in the form of the fund during the initial stage.

● There are a variety of funding instruments through which Samridhi provides the capital needed for growth to the companies, such as equity and convertible instruments.

● Some exceptional cases may get an investment fund that is beyond the decided range, that is, Rs. ₹5 – ₹25 crore if there is an outstanding potential for growth and return generation.

● Samridhi Fund is not rigidly restricted to the decided targeted sectors. It is not limited to those zones only.

Eligibility For Samridhi Fund

Enterprises and companies that are looking to apply for Samridhi Fund must be eligible as per the following criteria :

● Economically viable, a proven business model that has the potential to expand and provide developmental benefits and economic returns for the targeted states.
● Must have the plan to establish and grow in any of the 8 targeted states.
● Must catalyze the capital flow to the targeted states.
● Should be socially relevant
● Must provide access to markets for the poor.

Thinking Of Applying For Samridhi Fund?

Entrepreneurs who fit the eligibility criteria must avail the benefits of the SIDBI Samridhi Fund. Then what are you waiting for? Egniol Services provides start-to-finish assistance for the procedure of applying for Government grants and funding. Our team of experts provides you with all the necessary documentation required for the procedure.

Egniol Services supports this initiative taken by the government and is dedicated to providing the best services to all budding entrepreneurs. Innovators! Contact Egniol Services at the earliest to know more about Samridhi Fund and avail the benefits of the same.

Add a Comment

You must be logged in to post a comment