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IIM Ahmedabad’s CIIE.CO and SIDBI have signed a memorandum of understanding (MoU) to establish a pre-seed fund tailored specifically for deeptech startups.

The primary aim of the fund is to provide the much-needed support and nurturing to early-stage deeptech startups in the country. The fund boasts a total corpus of Rs 40 crore, which will be contributed equally by SIDBI and CIIE.CO.

The collaboration will also provide vital resources, mentorship, and financial support to startups trying to push the boundaries of technology, said a statement.

CIIE.CO has invested in over 350 startups, accelerated 1,500, and mentored numerous others in the last two decades.

The organisation’s investments span a broad range of sectors, with a key focus on three thematic areas: deeptech, digitisation, and climatetech.

In April this year, SIDBI launched the pilot phase of Mission 50K-EV4ECO, which aims at strengthening the EV ecosystem, including uptake for two-, three- and four-wheelers through direct and indirect lending.

SIDBI is presently administering the Fund of Funds for Startups with a total corpus of Rs 10,000 crore. This initiative was launched in 2016 as part of the Startup India programme.

Earlier this week, SIDBI joined as an anchor investor in the Promising Lenders Fund managed by Vivriti Asset Management. The fund, with a target corpus of Rs 700 crore in two phases, aims to provide essential debt capital to microenterprises and foster bond markets for BBB and lower-rated issuers.