Electronics Development Fund-backed startups raised over Rs 22,550 crore, 128 firms supported: Govt
Jul 29, 2026
New Delhi [India], July 29 : The government on Wednesday informed Parliament that startups backed under the Electronics Development Fund (EDF) have collectively raised over Rs 22,553.82 crore, while the fund has supported 128 startups and companies through investments made by eight SEBI-registered daughter funds.
In a reply to the Lok Sabha, Minister for Electronics and Information Technology Ashwini Vaishnaw said the Electronics Development Fund has invested Rs 257.77 crore in eight daughter funds as of June 30, 2026. These daughter funds, in turn, have invested Rs 1,335.77 crore in 128 companies and startups engaged in Electronics System Design and Manufacturing (ESDM) and Information Technology (IT).
He said, "Some of the Salient Achievements of EDF are, Daughter Funds leveraged EDF Investment to raise ~5X funds from market. Total funds raised by supported startups approx. Rs 22,553.82 crore. No. of IPs Created / Acquired by the invested startups - 373"
The EDF was established as a Fund of Funds to promote market-driven innovation in Electronics System Design and Manufacturing. Under the model, the government-backed fund invests in professionally managed, SEBI-registered venture funds, which then provide risk capital to startups developing new technologies in the electronics and IT sectors.
The government said startups were selected based on parameters including innovation capability, indigenous technology development, intellectual property creation potential, the technical capability of the founding team, and the presence of a scalable and commercially viable business model.
The reply added that the fund manager monitors the performance of the daughter funds, while the daughter funds regularly assess the progress of invested companies based on operational efficiency, technology development and market growth.
Among states, Karnataka accounted for the highest number of investments, with 90 companies, including 89 in Bengaluru, followed by Telangana (7), Maharashtra (8 across Mumbai and Pune), Tamil Nadu (5), Delhi (6), Kerala (6), Haryana (3), Rajasthan (1), West Bengal (1) and Uttar Pradesh (1).
The government also informed Parliament that the Electronics Development Fund is a close-ended fund. Having completed its investment phase in February 2024, it is currently in the divestment phase, while continuing to monitor the performance of its portfolio through the daughter funds.
