NEDFi Equity Fund

Key Features

• Investment range: The scheme supports substantial investments in the region. For example, a project requiring ₹1 crore may receive from ₹50 lakh up to ₹3 crore under this fund.
   
• Scope of use of funds: The investment covers typical project costs (like fixed assets, plant & machinery, installation), startup working capital and certain current assets – enabling both setup and early operational support.
   
• Promoter equity participation: The promoter must retain significant stake (often minimum 60% of paid-up equity) so that NEDFi’s investment is meaningful but the promoter retains control and incentive.
   
• Form of investment: NEDFi can invest either directly into equity shares or via convertible debentures, providing flexibility in financing structure suited to growth/exit strategy.
   
• Minimum investment period/exit mechanism: The investment is for a minimum lock-in period (around 5 years) to allow the business to mature. Exit options are structured: share buy-back, IPO, or sale to another investor.
   
• Sectors of focus: The fund emphasises sectors with potential for high growth, innovation, value-addition and employment generation in the NER. This helps steer funds into strategic sectors for regional development.

Financial Assistance

Eligibility Criteria

Who Can Apply:

• Startups registered and operating in any North Eastern state
• Early-stage or growth-stage enterprises requiring equity infusion
• Private limited companies with scalable business models
• Entrepreneurs in sectors such as manufacturing, services, tourism, food processing, IT/ITeS, and agriculture-based value chains

Who Cannot Apply:

• Entities operating outside the North Eastern Region
• Proprietorships or partnerships not converted into private limited companies
• Businesses with unclear revenue models or limited scalability
• Companies with poor financial compliance or weak corporate governance
• Businesses involved in restricted, polluting, or non-permitted sectors
• Applicants seeking working capital or debt-type funding only

Documents Required

• Completed application form of NEDFi Equity Fund scheme.
• Promoter(s) profile and credentials (resume/experience).
• Detailed business plan including market analysis, growth forecasts, competitive advantage.
• Financial projections (profit & loss, cash flow, balance sheet) for next 3-5 years.
• Details of promoter’s equity contribution and shareholding structure.
• Project cost breakup, use of funds statement, proposed investment by NEDFi.
• Exit strategy for NEDFi’s investment (buy-back, IPO, sale).
• Registration of business entity, incorporation documents (if company), Memorandum & Articles of Association, ownership structure.
• KYC of promoter(s), address proof, identity proof.
• Any additional sector-specific permissions or licenses if required.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations. 

Recommended for: startups and small companies that need expert assistance with investor documentation.

Option 2: Apply Directly to NEDFi

1. Prepare a pitch deck, financial projections, and business plan.
2. Visit a nearby NEDFi branch or contact the Venture Capital division.
3. Submit your proposal, financials, and company documents.
4. NEDFi evaluates business feasibility, promoter background, and investment potential.
5. A due diligence process follows (financial, legal, market).
6. Investment terms are negotiated and finalized through a term sheet.
7. Equity investment is made upon execution of agreements.

Option 3: Apply Through NEDFi Online Channels (If Open)

1. Visit the NEDFi official website.
2. Navigate to the Equity Fund / Venture Capital section.
3. Fill in the enquiry/application form and upload required documents.
4. Track communication from the equity team for further steps.