Karnataka tops Centre’s Electronics Development Fund with 90 firms, 64% of total investments
Karnataka has emerged as the largest beneficiary of the Centre’s Electronics Development Fund (EDF), with companies in the state accounting for 90 of the 128 firms backed under the scheme and receiving nearly two-thirds of the total investments made through its associated venture funds, according to data shared by the Ministry of Electronics and Information Technology (MeitY) in Parliament.
According to a reply tabled in the Lok Sabha on Wednesday, the eight “daughter funds” supported by the EDF had invested Rs 1,335.7 crore in 128 startups and companies as of June 30. Of these, 77 companies operate in electronics system design and manufacturing (ESDM), while 51 are in the information technology sector.
Karnataka accounted for 90 beneficiary companies, including 89 based in Bengaluru and one in Belagavi. The state’s firms received Rs 854.5 crore, representing around 64% of the total investments made by the EDF-backed venture funds.
Telangana was the second-largest beneficiary, with seven Hyderabad-based companies receiving nearly Rs 130 crore. Maharashtra followed, with eight companies in Mumbai and Pune securing Rs 142.4 crore. Six companies in Delhi received Rs 99.2 crore, while five Chennai-based firms were allotted Rs 62.2 crore.
The remaining investments were distributed among companies in Haryana, Kerala, Rajasthan, Uttar Pradesh and West Bengal. According to the ministry’s state-wise data submitted in Parliament, no company from Dadra and Nagar Haveli and Daman and Diu figured among the beneficiaries.
The Electronics Development Fund was established as a fund of funds, with the Centre investing Rs 257.7 crore in eight professionally managed, SEBI-registered venture capital funds. These funds subsequently invested more than five times that amount in technology companies.
The ministry said companies supported through the EDF have collectively raised around Rs 22,553.8 crore and created or acquired 373 intellectual property assets.
Canbank Venture Capital Fund Ltd manages the Electronics Development Fund, with MeitY serving as the anchor investor. According to the ministry, the fund completed its investment phase in February 2024 and is currently in the divestment phase, while the daughter funds continue to monitor the operational performance, market growth and technological progress of their portfolio companies.
