Neev Fund was conceptualized and launched in 2015 by Hon. Prime Ministers of India (Mr. Narendra Modi) and UK (Mr. David Cameron) to catalyze investment in Indian states which have traditionally not received private investments. The output envisaged from this initiative was creating a model for sustainable development that can provide economic, social and environmental benefits and create jobs in the eight low income states of India.
Since its inception, the Neev Fund has identified and successfully invested in ten portfolio companies in the target states. The Fund now almost completely committed and its investments into companies has led to significant impact at the grassroot level. The Neev Fund portfolio companies employ over 6,000 people and have demonstrated a waterfall effect on the value chain that the companies operate in.
Established as a contributory trust in 2014 Neev Fund is a INR 5,040 million fund focused on making investments in 8 of the low income states in India i.e Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Chattisgarh, Jharkhand, Odisha and West Bengal. The primary objective of the Neev Fund is to create sustainable development which will provide economic, social and/or environmental benefits and create jobs in the target states. The Fund is registered with he Securities and Exchange Board of India (“SEBI”) as a Category I Alternative Investment Fund – Infrastructure Fund (“Category I Infra AIF”) under the provisions of the SEBI (Alternative Investment Fund) Regulations, 2012 (“AIF Regulations”) The sponsor and investment manager of the Fund is SBICAP Ventures Limited.
The Fund has raised capital commitments from State Bank of India (“SBI”), the Department of International Development - United Kingdom (“DFID”) and Small Industries Development Bank of India (“SIDBI”) as the contributors of the Fund and from SBICAP Ventures Limited as its Sponsor.
NEEV FUND INVESTMENT OBJECTIVES
The Fund has made investments in business opportunities available in the Target States and in the Target Sectors in India.
The primary objective of the Fund is to create sustainable development which will provide economic, social and/or environmental benefits to the poor in some of the poorest regions of India through market returns on capital investments by carrying out the activity of a Category I Infra AIF, as permissible under the AIF Regulations.
The sectors which the Fund invests into -
have potential for higher growth rates.
have evolving or established business models which are commercially viable
do not have access to larger capital pools for meeting the capital requirements of the business
are expected to have the maximum impact in terms of social and environmental benefits.
These infrastructure sub-sectors comprise the Target Sectors for investment by the Fund, and include the following:
Agriculture supply chain: cold storage, warehousing etc.
Renewable Energy: solar, biomass; wind, hydro etc.
State roads/ district roads.
Urban Infrastructure: water supply, sewerage, solid waste management, and Social infrastructure sector such as healthcare, education, others having development impact, etc.