The DICCI SME Fund, a venture capital fund initiated by the Dalit Indian Chambers of Commerce and Industry has received SEBI’s approval to raise R500 Cr for 10 years through close ended fund, Indianexpress states.

According to DICCI President, Milind Kamble, SIDBI has already committed R10 Cr while talks with other banks and financial institutions are on. The plan is to create entrepreneurial role models within SC/ST communities that will attract educated SC/ST youth to the entrepreneurship.

The Varhad Group is the fund manager of DSF. Prasad Dahapute is the founder of the Varhad Group and MD of Varhad Capital.

Fund plans to raise money from banks and HNIs.This fund for Dalit entrepreneurs follows the new public procurement policy of the government which mandates that 4% of all procurement by public sector undertakings and government departments must be from SMEs owned by scheduled caste and scheduled tribe entrepreneurs.

This is Category-I SME Fund and aims to raise R160 Cr in the first closure.It aims to finance around 25 Dalit entreprenuers initially. Along with financing their projects, it would also support them to grow and exit when they become of running the business smoothly.Fund is looking forward to create four kinds of social impacts while generating internal rate of return of over 25%: Financial inclusion for SC/ST SMEs through access to equity capital markets, economic empowerment through wealth creation, employment creation for SC/ST youths and capacity building through the investee companies.

Business houses like Tata Group, Thermax, Godrej, and Forbes Marshall were keen to help DICCI in setting up the fund. A number of companies including a pipe manufacturing unit have approached DICCI for funds.

Compiled by 

Apurv Bhansali

apruv15@ediindia.org