Andhra Pradesh government is accumulating a Rs 500 crore fund to boost start-ups engaged in emerging financial technologies sector, by March of 2018, according to a senior government official.
Of the Rs 500 crore for the fund, Rs 100 crore will be pitched-in by the State government, while the remaining Rs 400 crore will be roped-in from co-investors such as Small Industries Development Bank of India (SIDBI), the official informed. As per the spokesperson, the government is currently in talks with potential investors to pool the fund.
The fund has been announced as part of the State government’s ambitious Fintech Valley in Vizag which aims to act as a catalyst in the growth of start-ups by connecting them to the leading fintech ecosystem players.
The official further informed that under the announced fund, government will be selecting a fund manager through a bidding process who will be deciding on specifics like ticket sizes of investment.
As per the official, the process for setting up Rs 500 crore fund has already been initiated and the government expects the fund to be operational by March of 2018.
Fintech Valley Vizag was set up in 2016 to bring together industry, academia and investors to innovate, co-create & build the fintech ecosystem. The valley strives to proceed on Andhra Pradesh’s enterprising motive to be a global hub for fintech innovation.
