Which institution is the investment manager of the SRI Fund?

Small Industries Development Bank of India

In quasi-equity financing, a convertible instrument can provide which mechanism?

Becoming ownership shares under agreed conditions

Exchanging foreign-currency earnings into rupees

Changing a floating interest rate into a fixed rate

Transferring an existing loan between lenders

SRI Fund: How Growth Capital Reaches Women-Led MSMEs

Why in news?

The Ministry of Micro, Small and Medium Enterprises held a workshop in New Delhi on 4 November 2026 to explain how women-led businesses can access growth capital through the Self-Reliant India (SRI) Fund. Organised under the Yashashvini Campaign, the event brought entrepreneurs together with investment funds and support organisations. The ministry reported the proceedings on 5 November.

What growth capital provides

A business may need money to add machinery, develop a product, enter a new market or expand its operations. Growth capital helps finance such expansion. Investors assess the enterprise’s prospects and agree on the amount, purpose and terms of their investment.

Equity represents ownership in a company. When a business raises money by issuing shares, investors obtain an ownership stake. They can benefit as the business grows and may receive dividends from profits. The arrangement also involves agreed rights relating to ownership and decision-making.

The SRI framework provides equity or quasi-equity through investment funds. Quasi-equity has some features of ownership finance; for example, a convertible instrument can turn into shares under agreed conditions. The instrument’s terms determine how the investment works.

How the mother-and-daughter structure works

SRI is a fund of funds. Its mother fund supplies capital to approved daughter funds, which then invest in eligible MSMEs. A daughter fund pools the SRI contribution with money raised from other investors. Professional fund managers assess businesses and manage the resulting investments.

The mother fund is housed in NSIC Venture Capital Fund Limited (NVCFL), a wholly owned subsidiary of the National Small Industries Corporation. SBI Ventures Limited is the investment manager. These institutional roles connect government backing with the investment funds that work with enterprises.

Diagram shows SRI mother-fund support and other investors’ capital joining at the daughter-fund level, followed by investment in eligible MSMEs. — Daughter funds pool SRI backing with other investors’ money and invest in eligible MSMEs. Clarity original diagram; sources: NVCFL and SBI Ventures.

The scheme was designed around a ₹10,000 crore government commitment and private investment expected at four times that amount. The fund manager’s explanation describes the pooling mechanism as four units raised from other sources for one unit from SRI. This is how public backing is intended to mobilise a larger pool of growth finance.

How an enterprise is assessed

The NVCFL process includes screening, detailed evaluation, due diligence, commercial negotiation, documentation and investment-committee approval. Due diligence means examining information about the business before committing capital. Financial records, operations and legal arrangements help an investor assess the proposal.

At the workshop, daughter funds highlighted a capable team, a strong market, a scalable business model, audited accounts and a clear use of capital. A scalable model is one that can serve a larger market as the enterprise grows. Investment readiness includes having the records and organisational arrangements needed for this assessment.

The focus on women-led enterprises

Participants discussed smaller investment amounts, accounting support, business valuation and investment-readiness programmes in smaller cities. They also linked finance with mentorship and access to markets. This connects the capital needed for expansion with the practical capabilities required to use it.

The ministry reported that 72 daughter funds had been empanelled and that investments of ₹21,330 crore in 824 MSMEs had been made through the system. These were the programme figures presented at the workshop. The discussion focused on helping more women entrepreneurs understand and approach the funding network.

Conclusion

The SRI Fund connects government backing, professionally managed investment funds and growth-oriented MSMEs. Its structure explains how capital reaches businesses, while the workshop highlighted the preparation and support that women-led enterprises may need to access it.