Small Industries Development Bank of India (SIDBI), the financial institution for promotion and financing of MSMEs, has extended risk capital assistance of close to Rs 1,100 crore to 500 MSMEs, it said in a statement on January 15.
“Some of the successful assisted entities include – Wildcraft, Smaash Entertainment, Snow World, Force Fitness, among others,” the statement said, adding that SIDBI also contracted a line of credit of $500 million which includes $150 million for augmenting risk capital financing in general and start-up financing in particular.
SIDBI is the only institution in the country to offer risk capital products through mezzanine structures to start-ups that are at the growth stage. Risk capital products include unsecured subordinate debt assistance which are long term (seven years) and have innovative structures such as cure period (during which no payment is required to be made by MSMEs in times of genuine business difficulties).
Kshatrapati Shivaji, CMD, said it is very active in supporting and promoting the entire start-up ecosystem for making it more healthy, robust and strong, which is very crucial in fueling India’s economic growth trajectory. “As a part of this exercise, SIDBI is also in the process of providing a collaborative engagement web-based platform which will not only provide single window availability of information but also enable digitised flow of information across all the stakeholders in the ecosystem,” he said.
Source: The Financial Express
Image Courtesy: The Hindu Business Line
