Self Reliant India Fund (SRI Fund)

The Self Reliant India Fund (SRI Fund) was created to support MSMEs by providing equity or quasi-equity funding. This means you get investment in your business instead of loans. The fund helps you grow, innovate, and become competitive. It works by investing in other funds (called Daughter Funds) that then invest in businesses like yours. This way, you get the right kind of support and guidance along with the money.

What is the Self Reliant India Fund?

The Self Reliant India (SRI) Fund, launched in 2020 under the Atmanirbhar Bharat initiative, is a ₹10,006 crore fund managed by NSIC Venture Capital Fund Limited (a SEBI-registered Category II AIF). The fund pools capital from the government and other investors and invests in MSMEs through a “Mother and Daughter Fund” structure. It provides growth capital to viable MSMEs via equity, quasi-equity, and debt instruments, helping them expand without heavy debt. The SRI Fund aims to foster MSME growth across India and support their journey to become national and global champions.

Objectives of the SRI Fund

• Provide equity capital to MSMEs for growth and listing of MSMEs on Stock Exchanges.
• Encourage innovation and technology upgrades.
• Help create jobs and promote entrepreneurship.
• Strengthen MSMEs to compete in national and global markets.
• Support the vision of a self-reliant India.

Key Features of the SRI Fund

• The SRI Fund is designed to amplify capital availability for MSMEs, enabling greater access to resources for business growth.
• The Government of India contributes ₹10,000 crore as the initial “Mother Fund” for the SRI Fund.
• Daughter Funds will raise ₹40,000 crore from external investors, leveraging the Mother Fund in a 1:4 ratio (for every ₹1 from the Mother Fund, ₹4 is raised externally).
• The combined corpus of the SRI Fund will be ₹50,000 crore, aimed at supporting MSMEs.
• The SRI Fund has a fund life of 15 years.
• The fund provides equity support to micro, small, and medium enterprises like yours to help grow and expand.
• Minimum amount released to a Daughter Fund is ₹25 crore (subsequent amounts in multiples of ₹5 crore).
• Maximum commitment is the lower of 20% of the Daughter Fund’s target corpus or ₹2,000 crore.

Financial Assistance Offered Under the SRI Scheme

• Equity investments range from ₹5 crore to ₹50 crore.
• Funds can be used for scaling up, technology upgrades, and market expansion.
• Mentorship and business support are provided through Daughter Funds.

Eligibility Criteria for the SRI Fund

Eligibility

• MSME registration under the MSMED Act, 2006 is necessary.
• If you are an existing and interested eligible MSME.
• A clear business plan and growth strategy should be in place.
• Businesses in manufacturing, services, or technology sectors qualify.
• A good track record or strong growth potential is important.
• Compliance with all legal and regulatory requirements is needed.
• Equity funding must be sought, not just loans.

Non-eligibility 

• Activities banned by law or government policy.
• Sectors excluded by the fund guidelines (like gambling or tobacco).
• Only seeking debt funding without equity.
• Non-profit institutions, NBFCs, financial inclusion companies, micro-credit groups, self-help groups (SHGs), and other financial intermediaries are not eligible for the SRI Fund. 

Documents Required for the SRI Fund

• MSME registration certificate
• Business plan and financial projections
• KYC documents of promoters/directors
• Audited financial statements (last 3 years, if available)
• PAN and GST certificates
• Details of existing loans or liabilities
• Any additional documents requested by Daughter Funds

How to Apply for the SRI Fund?

Step 1: Register your MSME on the official MSME portal.

Step 2: Prepare your business plan and gather all required documents.

Step 3: Find the Daughter Fund(s) relevant to your business sector.

Step 4: Submit your application and documents to the chosen Daughter Fund.

Step 5: Undergo evaluation and due diligence by the Daughter Fund.

Step 6: If approved, finalize the equity investment agreement.

Step 7: Receive the funds and start using them to grow your business.

Benefits of the SRI Fund Scheme

• Access to Significant Capital
  The fund provides you with substantial equity funding, which can fuel your business growth without the stress of repaying loans.
• No Collateral Needed
  You don’t have to pledge your assets, making it easier and safer to get funding.
• Long-Term Support
  With a 15-year tenure, the fund gives your business enough time to grow and succeed sustainably.
• Mentorship and Networking
  You gain access to expert guidance and valuable connections that can open new doors for your business.
• Encourages Innovation
  Funding can be used to adopt new technologies and improve your processes, keeping you ahead of the competition.

Real-World Examples of the SRI Fund Scheme

• Manufacturing MSMEs expanding their production lines.
• Tech startups scaling operations with equity investments.
• Service providers entering new markets with fresh capital.

Related Government Support Plans with SRI Fund for MSME

Final Words

The Self Reliant India Fund is more than just money, it’s a partner in your MSME journey. It empowers you with capital, guidance, and time to build a strong, competitive business. If you’re ready to take your venture to new heights, this fund can be the boost you need to turn your dreams into reality. Embrace the opportunity and become part of India’s self-reliant future!