Mumbai, April 1: The Government of India has invested Rs 257.77 crore through the Electronics Development Fund (EDF) across eight daughter funds, which have collectively supported 128 startups and companies, as reported to Parliament on Friday. Daughter funds are specialized investment vehicles that receive capital from a larger “mother” fund or government-backed entity to invest in specific sectors, startups, or MSMEs.
EDF Channels Funds Through Daughter Funds
In a written response to the Rajya Sabha, Minister of State for Electronics and IT Jitin Prasada explained that the Electronics Development Fund (EDF) was established as a Fund of Funds to invest in “Daughter Funds.” It provides risk capital to companies focused on developing emerging technologies in Electronics, Nano-electronics, and Information Technology (IT).
Rs 1,335 Crore Investment Boosts Innovation
“As of February 28, 2026, the EDF has invested Rs 257.77 crore in eight Daughter funds, which have in turn invested Rs 1,335.77 crore in 128 companies/startups. These supported companies employ over 22,700 individuals and have created or acquired more than 300 intellectual properties,” Prasada stated.
Investments Spread Across Cities
The EDF is managed by the Ministry of Electronics and Information Technology, with Canbank Venture Capital Funds Ltd (CVCFL) serving as the fund manager. This initiative aims to enhance India’s innovation ecosystem by providing access to capital for technology-driven enterprises.
According to Prasada, investments under the program are geographically diversified across 12 cities. Bengaluru leads with 88 funded firms, followed by seven each in Hyderabad and Kerala. Delhi and Chennai have six firms each, while Mumbai and Pune account for four each. Gurgaon hosts two funded companies, and Faridabad, Jaipur, Kolkata, and Noida each have one.
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