BANGALORE: Investors have committed at least Rs 400 crore to a government-backed fund that will provide capital to new ventures serving the needs of India's low-income communities. The fund, whose eventual size is envisaged at more than Rs 5,000 crore, is the first such by the government, which is taking increasing interest in venture capital investing.
The India Inclusive Innovation Fund, first announced in 2011, is expected to receive Cabinet approval in the next few weeks, said Sam Pitroda, the chairman of the National Innovation Council and the man regarded as the father of India's telecom revolution. "We will begin operations as soon as we receive approval," said Pitroda whose council will manage the fund. "NIC is in talks with banks and foreign lending agencies, including government-backed funds in the UK, to raise capital."