Electronics Development Fund backs 128 startups with US$ 139.23 million investments
- IBEF
- July 30, 2026
The Ministry of Electronics and Information Technology's (MeitY) Electronics Development Fund (EDF) has supported 128 startups and companies by catalysing investments of Rs. 1,335.77 crore (US$ 139.23 million) across the Electronics System Design and Manufacturing (ESDM) and information technology sectors. Established as a Fund of Funds, the EDF promotes market-driven innovation by investing in SEBI-registered venture capital funds, which subsequently provide risk capital to startups developing indigenous technologies, products and intellectual property. As of June 30, 2026, the EDF had invested Rs. 257.77 crore (US$ 26.87 million) in eight Daughter Funds, which have collectively financed startups across India. Karnataka emerged as the leading beneficiary, with Bengaluru accounting for 89 funded companies and investments of Rs. 854.54 crore (US$ 89.07 million). Other major investment destinations included Hyderabad Rs. 129.97 crore (US$ 13.55 million), Mumbai and Pune Rs. 142.48 crore (US$ 14.85 million), Delhi Rs. 99.20 crore (US$ 10.34 million) and Chennai Rs. 62.24 crore (US$ 6.49 million).
Of the 128 companies supported under the programme, 77 operate in the ESDM sector and 51 in information technology. The startups were selected based on innovation capability, indigenous technology development, intellectual property creation, technical expertise and commercial scalability. Canbank Venture Capital Funds Ltd. serves as the fund manager, while MeitY acts as the anchor investor, monitoring the performance of the Daughter Funds and supported enterprises. Beyond direct investments, the EDF has enabled Daughter Funds to leverage nearly five times the initial investment from the market, while supported startups have collectively raised Rs. 22,553.82 crore (US$ 2.35 billion) and created or acquired 373 intellectual properties (IPs). Having completed its investment phase in February 2024, the Electronics Development Fund is now in its divestment phase, continuing to strengthen India's innovation ecosystem and support the country's vision of becoming a global hub for electronics manufacturing and technology development.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
