The Indian government has invested ₹22,553.82 crore in 128 startups and companies through the Electronics Development Fund (EDF), union minister Ashwini Vaishnaw informed Parliament. As of June 30, 2026, the EDF has invested ₹257.77 crore across eight SEBI-registered daughter funds, which in turn have invested ₹1,335.77 crore in startups across electronics and IT sectors, according to inc42.com.
The EDF operates as a fund of funds, channeling investments into professionally managed SEBI-registered venture funds called daughter funds. These daughter funds then provide risk capital to startups focused on electronics system design and manufacturing (ESDM) and IT innovations. Canbank Venture Capital Funds Ltd manages the EDF, with the Ministry of Electronics and Information Technology acting as the anchor investor. The daughter funds have leveraged the EDF’s initial investment to raise nearly five times more capital from the market.
The EDF was established under the National Policy on Electronics, 2012, with its policy framework introduced during Digital India Week on July 1, 2015, and formally launched on February 15, 2016. The fund aims to promote market-driven innovation in the electronics sector by supporting startups that have created or acquired 373 intellectual properties so far. This approach aligns with government efforts to boost indigenous technology development and manufacturing capabilities.
The EDF’s backing of startups through daughter funds has mobilized significant private capital and fostered innovation in the electronics and IT sectors. The next official update on the EDF’s investments and portfolio performance is expected in the upcoming quarterly report from the Ministry of Electronics and Information Technology.
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