The North East Venture Fund (NEVF): An Essential Platform for Boosting Startups in North Eastern India
Introduction
In an age where startups are emerging as engines of economic growth and social innovation, the North East Venture Fund (NEVF) serves as an indispensable lifeline for budding entrepreneurs in North Eastern India. NEVF is a pioneering initiative in the region aimed at nurturing and promoting entrepreneurship, fostering economic growth, and creating jobs. Registered as a Category I Venture Capital Fund under the Securities and Exchange Board of India (SEBI) Alternative Investment Funds (AIF) Regulations, 2012, the NEVF has been instrumental in driving startup growth and development in the region.
The Purpose of NEVF
The primary goal of the NEVF is to identify unique business opportunities in the region, offering financial support to startups that harness these opportunities to provide value-added solutions to consumers. Besides, the NEVF encourages entrepreneurship among marginalized sections through the branch network of North Eastern Development Finance Corporation Ltd. (NEDFi) which spans all states of the North Eastern Region (NER).
Mechanism of Operation and Funding
An independent committee, comprising seasoned professionals from venture funding, private equity, and developmental banking fields, makes the investment decisions. The NEVF was established as a closed-ended fund with a target corpus of Rs. 100 crore. It has already received its targeted corpus from contributions from NEDFi, the Small Industries Development Bank of India (SIDBI), and the Ministry of Development of North Eastern Region (MDoNER).
As a regulatory measure, periodic reporting on operations and compliance with regulations is presented before the contributors of NEVF and other concerned bodies in a structured format. Additionally, fund operations are monitored by the Reserve Bank of India (RBI) and the Comptroller and Auditor General of India (CAG) through periodic audits.
Boosting Entrepreneurship and Employment
The startups supported by NEVF have generated a significant number of jobs, including skilled and unskilled labor, and have also encouraged female participation. State-wise and year-wise data on employment generated through these startups is presented in Annexure II.
Successes and Outreach Efforts
To further its reach, the NEVF has undertaken a series of initiatives to tap into the entrepreneurial potential in the remote areas of NER. One such effort was the Startup Investment Fest conducted in March 2022. This online application process for investment has been a game-changer, garnering significant interest from the far-flung regions of NER.
Five Benefits of NEVF Explained
- Catalyzing Economic Growth: By investing in startups, NEVF spurs economic activity and growth in the North Eastern Region.
- Job Creation: Startups supported by NEVF have been successful in generating significant employment opportunities in the region.
- Promoting Innovation: NEVF stimulates innovative thinking by providing necessary financial support to the startups which bring unique, value-added solutions to the market.
- Reaching Marginalized Sections: Through NEDFi’s branch network, NEVF reaches out to and supports startups from marginalized sections, thereby promoting inclusive growth.
- Women Empowerment: NEVF has played a pivotal role in promoting women-led startups, thereby empowering women in the region.
Annexure-I
Investment in startups by the North East Venture Fund (NEVF) since inception:
| Sl No. | Name of the Startup | Amount Invested | Location | Sector |
| 1 | Fareast Tourism Development Pvt Ltd | 90.00 | Arunachal Pradesh | Tourism |
| 2 | PWLO Entertainment Pvt Ltd | 50.00 | Arunachal Pradesh | Tourism |
| 3 | ERC Eye Care Pvt Ltd | 300.00 | Assam | Healthcare |
| 4 | Automovill Technologies Pvt Ltd | 380.00 | Assam | Mobility |
| 5 | Terra Blue Exploration Technologies Pvt Ltd | 200.00 | Assam | Healthcare |
| 6 | Parking Rhino Online Services Pvt Ltd | 365.00 | Assam | Mobility |
| 7 | Pratyaksha Agrotech Pvt Ltd | 400.00 | Assam | Biotech |
| 8 | Northeast Flavors India Pvt Ltd | 172.50 | Assam | Food Processing |
| 9 | Symbiotic Foods Pvt Ltd | 250.00 | Assam | Agri & Allied |
| 10 | Izake Design & Consultancy Pvt Ltd | 25.00 | Assam | Handloom & Handicrafts |
| 11 | Atvi Infotainment Pvt Ltd | 300.00 | Assam | Media & Entertainment |
| 12 | Olatus Systems Pvt Ltd | 35.00 | Assam | Internet of Things |
| 13 | Invicto Software Solutions Pvt Ltd | 450.00 | Assam | Software as a Service |
| 14 | OSK Food & Technology Pvt Ltd | 50.00 | Assam | Food & Beverage |
| 15 | Etash Delivery Technologies Pvt Ltd | 500.00 | Assam | Logistics |
| 16 | Zerund Manufacturing Pvt Ltd | 260.00 | Assam | Construction |
| 17 | KraftInn Home Decore India Pvt Ltd | 50.00 | Assam | Handloom & Handicrafts |
| 18 | My3dselfie Pvt Ltd | 400.00 | Assam | Software as a Service |
| 19 | Ruloi Tea Trading Pvt Ltd | 112.00 | Assam | Food & Beverage |
| 20 | Encamp Tourism Pvt Ltd | 100.00 | Assam | Tourism |
| 21 | Aqua Blue Global Aquaculture Solutions Pvt. Ltd. | 50.00 | Assam | Agri & Allied |
| 22 | QWKPRO Consultancy Pvt Ltd | 30.00 | Assam | Healthcare |
| 23 | Bright crop Agro Products Private Limited | 50.00 | Assam | Agri & Allied |
| 24 | Avgarde Systems Pvt Ltd | 100.00 | Assam | Internet of Things |
| 25 | Respirit Healthcare Pvt Ltd | 25.00 | Assam | Healthcare |
| 26 | Binbag Environmental Services Pvt Ltd | 75.00 | Assam | Waste Management |
| 27 | Thangvung Privilege Services Pvt Ltd | 25.00 | Manipur | Loyalty Marketing |
| 28 | Taret Foods Pvt Ltd | 65.00 | Manipur | Food Processing |
| 29 | Hills Land Ed Tech Pvt Ltd | 50.00 | Manipur | Education |
| 30 | Twosis Garden Pvt Ltd | 45.00 | Manipur | Food Processing |
| 31 | Tantha Entertainment Pvt Ltd | 150.00 | Manipur | Media & Entertainment |
| 32 | Green Biotech Ecosolution Pvt Ltd | 300.00 | Manipur | Biotech |
| 33 | Eri Weave Pvt Ltd | 35.00 | Meghalaya | Handloom & Handcrafted |
| 34 | Shillong Bamboo Pvt Ltd | 45.00 | Meghalaya | Bamboo |
| 35 | Ruralnomics Pvt Ltd | 25.00 | Meghalaya | E-commerce |
| 36 | Topview Infolabs (P) Limited | 100.00 | Sikkim | Tourism |
| 37 | Aaharan Edusmart Pvt Ltd | 25.00 | Tripura | Education |
| Total | 5684.50 | |||
Annexure-II
Employment generated through NEVF supported start-ups:
| Financial Year | State | Male | Female | Total | Skilled | Unskilled |
| 2017-18 | Assam | 135 | 120 | 255 | 109 | 146 |
| Sub-Total | 135 | 120 | 255 | 109 | 146 | |
| 2018-19 | Assam | 1307 | 374 | 1681 | 92 | 1589 |
| Sub-Total | 1307 | 374 | 1681 | 92 | 1589 | |
| 2019-20 | Arunachal Pradesh | 15 | 7 | 22 | 6 | 16 |
| Assam | 84 | 29 | 113 | 63 | 50 | |
| Manipur | 24 | 8 | 32 | 31 | 1 | |
| Sub-Total | 123 | 44 | 167 | 100 | 67 | |
| 2020-21 | Arunachal Pradesh | 62 | 7 | 69 | 6 | 63 |
| Assam | 827 | 93 | 920 | 87 | 833 | |
| Manipur | 232 | 43 | 275 | 35 | 240 | |
| Mizoram | 125 | 13 | 138 | 11 | 127 | |
| Sikkim | 62 | 7 | 69 | 6 | 63 | |
| Tripura | 10 | 4 | 14 | 4 | 10 | |
| Sub-Total | 1318 | 167 | 1485 | 149 | 1336 | |
| 2021-22 | Assam | 237 | 53 | 290 | 77 | 213 |
| Manipur | 26 | 6 | 32 | 16 | 16 | |
| Sub-Total | 263 | 59 | 322 | 93 | 229 | |
| 2022-23 | Assam | 679 | 101 | 780 | 99 | 681 |
| Meghalaya | 29 | 11 | 40 | 32 | 8 | |
| Manipur | 12 | 10 | 22 | 17 | 5 | |
| Sikkim | 21 | 14 | 35 | 22 | 13 | |
| Sub-Total | 741 | 136 | 877 | 170 | 707 | |
| 2023-24 | Assam | 11 | 4 | 15 | 13 | 2 |
| Arunachal Pradesh | 8 | 2 | 10 | 10 | 0 | |
| Sub-Total | 19 | 6 | 25 | 23 | 2 | |
| Total | 3906 | 906 | 4812 | 736 | 4076 |
This information was given by Union Minister for Ministry of Development of North Eastern Region G. Kishan Reddy in a written reply in Lok Sabha.
Address: NEDFi Venture Capital Limited, NEDFi House, Dispur, G.S. Road, Guwahati, Assam, PIN – 781006
