IDBI Capital Markets and Securities Ltd, the alternative investment arm of IDBI Bank, is planning to launch two new venture capital funds by the end of 2025, according to a senior company executive. The announcement comes as the company seeks to expand its presence in the rapidly growing Indian venture capital space.
IDBI Capital, which has been in operation since 1998, currently manages two existing venture capital funds. The planned launch of two new funds marks a significant expansion of the company’s investment portfolio, driven by increasing demand for venture capital investments in India.
The new funds are expected to focus on supporting early-stage startups in various sectors, including technology, healthcare, and fintech. The company is likely to invest in Indian startups through these funds, providing them with necessary capital to scale their businesses and drive growth.
The company’s decision to launch new funds is in line with the growing trend of large financial institutions venturing into alternative investments, such as private equity and venture capital. This trend is driven by the attractive returns generated by these assets, as well as the increasing demand for investment opportunities in emerging markets like India.
IDBI Capital’s move to launch new funds is also expected to create a positive impact on the startup ecosystem in India, as it will provide additional funding options for early-stage startups. With a presence in multiple sectors, the company is likely to support a diverse range of businesses, from tech-enabled startups to socially responsible enterprises.
In conclusion, the proposed launch of two new venture capital funds by IDBI Capital is a significant development in the Indian startup ecosystem. The company’s expansion plans are expected to create new opportunities for Indian startups, driving growth and innovation across various sectors.