SVL SME Fund (Neev II) – Overview
Neev Fund II, the successor fund of Neev I, was launched in May 2021 and seeks to provide growth and capital expansion to SMEs offering solutions for clean energy, electric vehicles, efficient use of raw materials, and water and circular economy projects in the country. The SME space is one of the largest employment generators in India, and has the ability to generate a multiplier effect in terms of increased standards of living, better livelihoods and access to clean energy to large sections of society is tremendously high.
The registration details of the fund are as follows:,
Category of AIF: Category I, SEBI Registration No.: IN/AIF1/19-20/0730,
Name of Fund Manager: SBI Ventures Limited (formerly known as SBICAP Ventures Limited)
Investment Objectives and Sectors
Neev II will invest in small and medium enterprises (SMEs) that focus on limiting and increasing resilience to climate and environmental changes and are aiding India in meeting its carbon emissions reduction targets by 2030. To fulfil India’s Nationally Determined Contributions (NDCs), the SME sector will be at the forefront of meeting the national climate change objectives as SMEs are closely aligned with on-the-ground realities.
Neev II aims to bridge the private equity gap required for the transition towards climate resilience and low emissions in the SME space. Neev II will go beyond the traditional definition of impact investing by taking up policy initiatives to harness the true potential of impact. It will follow an active engagement model like Neev I which will enable its portfolio companies to grow and transmit the benefits across the value chain. The fund will work with its investees to provide regulatory support, access to finance and organization building abilities.
Key Contributors
The contributors in Neev II are
State Bank of India (SBI)
Having a rich heritage and legacy of over 200 years, State Bank of India (SBI), a Fortune 500 company, is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai and is accredited as the most trusted bank by Indians through generations. Through its 30 subsidiaries and 9 joint ventures, it is the dominant banking and financial services group in India; SBI is the largest bank in India and has a 23% market share in assets and approximately one-fourth of the total loans and deposits market. The majority shareholding in the bank is with the Government of India. It has spread its presence globally and operates across time zones in 31 foreign countries.
SBI Ventures Limited (SVL)
SBI Ventures Limited (Formerly known as SBICAP Ventures Limited) is a wholly owned subsidiary of State Bank of India, the largest public sector bank in India, incorporated in November 2005 for carrying on venture capital fund activities i.e. to act as an asset management company for venture capital funds. SVL is the Sponsor and the Investment Manager of the Neev Funds
European Investment Bank (EIB)
The European Investment Bank is the lending arm of the European Union. They are one of the biggest multilateral financial institutions in the world and one of the largest providers of climate finance. They catalyse private capital through investment in equity and in funds.
Small Industries Development Bank of India (SIDBI)
Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly touched the lives of Micro and Small Enterprises (MSEs) through various credit and developmental engagements. SIDBI 2.0 carries the vision of inclusive, innovative and impact-oriented engagements.
Japan International Cooperation Agency (JICA)
JICA, Japan’s governmental agency works towards promoting economic and social growth in developing countries. JICA is one of the largest bilateral development organizations in the world with a network of 97 overseas offices and projects in more than 150 countries. JICA’s vision is to take the lead in forging bonds of trust across the world with its partners, aspiring for a free, peaceful and prosperous world where people can hope for a better future and explore their diverse potentials.
Self Reliant India (SRI) Fund
The Self Reliant India (SRI) Fund is organised as the first scheme of NSIC Venture Capital Fund Limited (“NVCFL”), a wholly owned subsidiary of National Small Industries Corporation Ltd. SRI Fund has been incorporated in line with the vision of Prime Minister of India, Mr.Narendra Modi. SRI Fund employs a ‘Fund-of-Fund’ investment strategy wherein the Fund shall be holding a portfolio in SEBI registered Category I and Category II Alternative Investment Funds, which shall in turn invest in MSMEs.
Foreign, Commonwealth & Development Office, Govt. of UK (FCDO formerly DFID)
FCDO leads the UK’s work internationally, promoting the UK overseas. Being an active, confident, internationalist, burden-sharing and problem-solving nation, they are the most vital force in promoting the interests of British citizens, safeguarding the UK’s security, defending values, reducing poverty and tackling global challenges with all their international partners.
