The Government of India has invested Rs 257.77 crore under the Electronics Development Fund (EDF) across eight daughter funds, which in turn have given financial support to 128 startups and companies, the Parliament was informed on Friday. Daughter funds are specialized investment vehicles or sub-funds 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
Responding in a written reply to the Rajya Sabha, Minister of State for Electronics and IT Jitin Prasada stated that the Electronics Development Fund (EDF) was set up as a Fund of Funds to invest in “Daughter Funds”. It provides risk capital to companies developing emerging technologies in the area of Electronics, Nano-electronics and Information Technology (IT).
Rs 1,335 Crore Investment Boosts Innovation
"As on February 28, 2026, EDF has invested Rs 257.77 crore in eight Daughter funds, which in turn have made investments of Rs 1,335.77 crore in 128 companies/startups. Total employment in supported companies is more than 22,700. The number of IPs created/acquired by the supported companies are more than 300," Prasada said.
Investments Spread Across Cities
The EDF is anchored by the Ministry of Electronics and Information Technology, with Canbank Venture Capital Funds Ltd (CVCFL) serving as the fund manager. The initiative is aimed at strengthening India’s innovation ecosystem by enabling access to capital for technology-driven enterprises.
Investments under the programme have been geographically diversified across 12 cities, according to the information shared by Prasada. 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 have one each.
