EDF backs 128 startups with Rs1,335 crore investments

The Electronics Development Fund (EDF) has catalysed investments worth over Rs1,335 crore across 128 startups and companies working in electronics system design, manufacturing (ESDM) and information technology, the Ministry of Electronics and Information Technology (MeitY) said on Wednesday. Launched as a Fund of Funds, the EDF was created to promote market-driven innovation in the ESDM sector by investing in professionally managed, SEBI-registered venture capital funds, known as Daughter Funds. These funds, in turn, provide risk capital to startups developing indigenous technologies, products and intellectual property.
As of June 30, 2026, the EDF had invested Rs257.77 crore in eight Daughter Funds. These funds have collectively invested ₹1,335.77 crore in 128 startups and companies across India. Karnataka emerged as the largest beneficiary, with Bengaluru accounting for 89 funded companies and investments worth Rs854.54 crore. Other major startup hubs include Hyderabad (Rs129.97 crore), Mumbai and Pune (Rs142.48 crore combined), Delhi (Rs99.2 crore), Chennai (Rs62.24 crore), Kochi and Thiruvananthapuram (Rs13.3 crore), Gurugram and Faridabad (Rs23.87 crore), Jaipur (Rs7.5 crore), Kolkata (Rs0.75 crore) and Noida (Rs1.85 crore). Of the 128 companies supported, 77 operate in the ESDM sector, while 51 are focused on information technology. 
According to the ministry, startups were selected based on parameters such as innovation capability, indigenous technology development, intellectual property creation, the technical strength of founding teams, and the scalability and commercial viability of their business models. Canbank Venture Capital Funds Ltd. (CVCFL) serves as the fund manager, while MeitY is the anchor investor. The fund manager monitors the performance of the Daughter Funds, which in turn regularly assess the operational efficiency, technology development and market growth of the startups they support. Having completed its investment phase in February 2024, the Electronics Development Fund is currently in its divestment phase, the ministry added.