Electronics Development Fund Investments

The Electronics Development Fund (EDF) is a Fund of Funds set up by the Ministry of Electronics and Information Technology (MeitY) to support venture capital funds that invest in electronics and information technology enterprises. As of 30 June 2026, the EDF had invested Rs 257.77 crore in eight SEBI-registered venture capital funds, called Daughter Funds.

Electronics Development Fund: structure and purpose

The EDF operates as a Fund of Funds, which means it invests in venture capital funds rather than directly in startups. MeitY is the anchor investor in the fund, and Canbank Venture Capital Funds Ltd. serves as the fund manager. The EDF was created to support the Electronics System Design and Manufacturing (ESDM) sector and the Information Technology (IT) sector in India.

Daughter Funds and startup investments

The eight Daughter Funds supported by the EDF had invested Rs 1,335.77 crore in 128 startups and companies. Of these, 77 companies belonged to the ESDM sector and 51 companies belonged to the IT sector. The supported companies had also created or acquired 373 intellectual properties.

State-wise distribution and investment phase

Karnataka received the largest share of Daughter Fund investments, with 90 companies, including 89 in Bengaluru, receiving Rs 854.54 crore. This amount accounted for about 64% of the total investment made by the Daughter Funds. The EDF completed its investment phase in February 2024 and is now in its divestment phase.

Important Facts for Exams

• The Electronics Development Fund is a Fund of Funds under the Ministry of Electronics and Information Technology.
• SEBI-registered venture capital funds supported by EDF are called Daughter Funds.
• Electronics System Design and Manufacturing is commonly abbreviated as ESDM.
• Canbank Venture Capital Funds Ltd. is the fund manager for the EDF.

Electronics Development Fund in brief

The EDF had channelled investments into 128 startups and companies by 30 June 2026. The fund remains linked to India’s electronics and IT startup ecosystem through venture capital participation and divestment activity.