Incube Connect Fund, the first one to be registered as a social venture fund under the new SEBI guidelines, has got commitment of Rs 20 crore ($3.2 million) from Small Industries Development Bank of India (SIDBI). The fund has set a target of Rs 200 crore and expects to make a first close in a month or two.
"This marks the beginning of institutional contribution as Incube has approached a number of national level institutions, including PSU banks and insurance companies," said a statement.
The fund, to be managed by Incube Advisors and sponsored by Incube Ventures, is the first to be granted approval as a social venture fund under the Alternative Investment Fund Regulations, 2012.
The firm has also strengthened its mentor group by roping in Vishnu Swaminathan, India country director, Ashoka India; Venkat Changavalli,
first CEO of EMRI, which provides free emergency response services and Manoj Chakravarti, chief operations officer at the Centre for Corporate Governance and Citizenship-IIM, Bangalore.
Advisors for Incube include Titan Industries managing director Bhaskar Bhat, Kotak Private Equity CEO Nitin Deshmukh and GVFL executive director Dr HC Pattnaik.
Ahmedabad-based Incube Advisors has been set up Mani Iyer, a former top executive at the pharmaceutical major Intas Group. Incube Connect
Fund would invest in companies based in tier II and tier III towns.
The fund will look to invest Rs 50 lakh-Rs 15 crore in each company and build a portfolio of around of 25 companies.
The fund is targeting global institutional investors besides Indian investors and corporate houses as limited partners. It has already seen some traction from high networth individuals (HNIs).
Although the fund is sector agnostic, it will focus on areas like healthcare delivery, vocational training & skill enhancement, clean energy and sustainable rural business innovations.
(Edited by Joby Puthuparampil Johnson)