New Delhi, March 27 The government has invested ₹257.77 crore under the Electronics Development Fund in eight "Daughter funds", which in turn have provided financial support to 128 startups and companies, Parliament was informed on Friday.
"Daughter funds" are specialized investment vehicles or sub-funds that receive capital from a larger "mother" fund or a government-backed entity to invest in specific sectors, startups, or MSMEs.
In a written reply to the Rajya Sabha, Minister of State for Electronics and IT, Jitin Prasada, said that the Electronics Development Fund (EDF) was established as a "Fund of Funds" to invest in "Daughter funds" and it provides risk capital to companies developing emerging technologies in the areas of electronics, nano-electronics, and information technology (IT).
"As of February 28, 2026, EDF has invested ₹257.77 crore in eight Daughter funds, which in turn have made investments of ₹1,335.77 crore in 128 companies/startups. The total employment in the supported companies is more than 22,700. The number of IPs created/acquired by the supported companies is more than 300," Prasada said.
Canbank Venture Capital Funds Ltd (CVCFL) is the fund manager, and the Ministry of Electronics and Information Technology is the anchor investor of EDF.
According to information shared by Prasada, the investments have been made in firms located in 12 cities.
Most of the investments have gone to firms in Bangalore (88), followed by 7 each in Hyderabad and Kerala, six each in Delhi and Chennai, 4 each in Mumbai and Pune, two in Gurgaon, one each in Faridabad, Jaipur, Kolkata and Noida.