IT/BT dept plans Rs 150-crore Debt Fund for Startups

Hoping to give startups some good news in the upcoming state Budget, the IT/BT department is looking to earmark Rs 150 crore under a new ‘Debt Fund’ to help companies secure Series-A funding.

The first-of-its-kind initiative was discussed during the pre-budget meeting Chief Minister B S Yediyurappa held with his deputy C N Ashwath Narayan, who is the IT/BT minister.

At present, debt funds in India support only those startups that have secured Series-A funding. By starting a Debt Fund, the state government wants to bridge the gap that exists until a startup gets Series-A funding. Narayan has sought Rs 150 crore over a three-year period, with Rs 35 crore for the purpose in the 2020-21 fiscal.