India’s electronics sector has witnessed a remarkable transformation in recent years, driven by a series of Government initiatives and industry reforms. The country is steadily emerging as a global hub for electronics system design and manufacturing. The Electronics Development Fund (EDF) was one of the initiatives of the Government of India, to promote market driven innovation in Electronics System Design and Manufacturing (ESDM).

The EDF was set up as a Fund of Funds, designed to invest in professionally managed Daughter Funds which are SEBI registered venture funds. These Daughter Funds provided risk capital to startups and companies developing new technologies in the area of ESDM and Information Technology (IT).  By doing so, the EDF played a crucial role in building a self-sustaining electronics ecosystem that encourages innovation, product design, and intellectual property creation within the country.

The selection of startups for investments by the Daughter Funds of EDF were made on the basis of various parameters which included their innovation capability, indigenous technology development, and IP creation potential, technical capability of the founding team as well as a scalable and commercially viable business model.

Canbank Venture Capital Funds Ltd. (CVCFL) is the Fund Manager and the Ministry of Electronics and Information Technology is the anchor investor of EDF. As on 30.06.2026, EDF has invested Rs. 257.77 crore in eight Daughter Funds, which in turn have made investments of Rs. 1335.77 crore in 128 Companies/Startups.  The details of investments of the Daughter Funds of EDF, sector wise, and location wise are as follows:

S. No	Registered Location of the investee companies		No of Companies Invested by Daughter Funds	Sector		Total amount invested by Daughter Fund (₹ Crores)
	State / UT	City
				ESDM	IT
1	Karnataka	Bangalore	89	56	33	854.54
		Belagavi	1	1	0
2	Telangana	Hyderabad	7	3	4	129.97
3	Maharashtra	Mumbai	4	2	2	142.48
		Pune	4	2	2
4	Tamil Nadu	Chennai	5	2	3	62.24
5	Delhi	Delhi	6	3	3	99.2
6	Kerala	Cochin	5	3	2	13.30
		Trivandrum	1	1	0
7	Haryana	Gurgaon	2	1	1	23.87
		Faridabad	1	1	0
8	Rajasthan	Jaipur	1	1	0	7.5
9	West Bengal	Kolkata	1	1	0	0.75
10	Uttar Pradesh	Noida	1	0	1	1.85
Total			128	77	51	1335.77

 

The fund manager of EDF monitors the performance of the Daughter Funds. Daughter Funds in turn monitor the progress of the invested companies through regular assessment of operational efficiency, market growth, technology development etc.

Some of the Salient Achievements of EDF are as follows:

• Daughter Funds leveraged EDF Investment to raise ~5X funds from the market.
• Total funds raised by supported startups ~ ₹ 22,553.82 crore
• No. of IPs Created / Acquired by the invested startups - 373

EDF is a close ended fund, which completed its investment phase in February, 2024 and is currently in the divestment phase.

This information was submitted by Union Minister for Electronics and Information Technology Shri Ashwini Vaishnaw in Lok Sabha on 29.07.2026.

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Vinod Kumar / Kanishk Sharma

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