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Tag: small industries development bank of india

  • What Is Aspire Scheme | How Startups Can Benefit From It?

    We all aspire to do something huge. Regardless of whether we are a student, a business professional, a startup founder, or an entrepreneur to be, our aspiration is what propelled us to greatness.

    The Indian government also realized the importance of our aspirations and has launched the “ASPIRE” scheme. The naming of the scheme is also entirely significant, which refers to “A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship” when the acronym is expanded.

    Coming under the Ministry of Micro, Small and Medium Enterprises, Government of India, the ASPIRE scheme was launched in 2015, and is aimed to help foster entrepreneurship. Like other innovative Government of India schemes that the Modi-led government has launched, the ASPIRE scheme also has a huge potential to improve the industrial sectors and bring in a period of growth for the country. Much like the growth of Indian startups and unicorn companies of India, which make interesting reads, the schemes of India, which strive to gear up for the new age, Atmanirbhar Bharat, shall also be known thoroughly. This is why StartupTalky has come up with this article that is solely dedicated to the ASPIRE scheme of the Indian government.

    What is the ASPIRE Scheme?
    Objectives of the ASPIRE Scheme
    Eligibility for the ASPIRE Scheme
    The Goal of ASPIRE | What did the GOI Decide via ASPIRE Scheme?
    How can Startups Reap the Benefits of the ASPIRE Scheme?

    What is the ASPIRE Scheme?

    The ASPIRE scheme is designed to set up a network of technology centers and incubation centers, with which the Indian government wants to accelerate entrepreneurship and also promote startups in India for innovation in the agro-industry.

    Furthermore, the scheme is also aimed to provide financial support to set up Livelihood Business Incubators (LBI) or Technology Business Incubators (TBI). The 3 main components of the ASPIRE scheme can be summed up:

    • LBI, or Livelihood Business Incubation – Under this, the ASPIRE scheme will help create jobs at the local level and reduce unemployment there, by building a favorable ecosystem for the entrepreneurial development of the country. The Livelihood Business Incubators would help business incubation, offer skill development to the youth, help them stand as entrepreneurs, and extend adequate funding to the entrepreneurs to set up their enterprises.
    • TBI, or Technology Business Incubation – In this category, the ASPIRE scheme will help the incubators of technology tap into the potential technology-related ideas and innovations by utilizing the existing infrastructure and expertise that are available already with the incubators. TBI would encourage the growth of enterprises through the application of technology and innovation. Besides, it will also support economic development strategies for small business development. Also, the TBI incubators would foster growth in local economies and extend mechanisms for technology transfer.
    • Promotion of Startups via SIDBI referred to as the Small Industries Development Bank of India – SIDBI would usher in creative scalable ideas/innovations and strive to convert them into commercially viable enterprises. A fund of funds is also created under SIDBI, which it can utilize to invest in startups and other early enterprises, thereby converting such ideas/innovations. These investments would only be in the startups that belong to the rural/agro-based industries. There will be no investment for the companies that run on the basis of technology.

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    Objectives of the ASPIRE Scheme

    The objectives of the Government of India’s ASPIRE scheme can be summed up as:

    • It aims to build new jobs and reduce unemployment
    • The ASPIRE scheme would encourage the entrepreneurship culture in India
    • It aims to further grassroots economic development at the district level
    • It helps facilitate innovative business ideas and solutions for social needs that are unaided or unfulfilled
    • The ASPIRE scheme promotes innovation to further strengthen the competitiveness of the MSME sector
    • It strives to provide monetary aid, which can be utilized to buy plants and machinery other than land and infrastructure, or an amount of INR 100 lakhs, whichever is less.
    • It also aims to provide practical business experiences to the budding entrepreneurs

    Eligibility for the ASPIRE Scheme

    If you are wondering about “who are eligible for the ASPIRE government of India scheme?” then all the startups and the traditional enterprises are all in luck because are eligible to reap the benefit of the ASPIRE Yojana.

    In the union budget of 2019 that was presented by Finance Minister Nirmala Sitharaman, the government of India stated that around 80 livelihood businesses and up to 20 technology business incubators will be generating close to 75,000 skilled entrepreneurs in the agro-rural industry industries under the ASPIRE Scheme.

    As soon as a company fills out an application for the ASPIRE scheme, it is sent to the committee of the ASPIRE Scheme that deals with such applications under the Ministry of MSME, which is entitled to provide support to any companies/startups who want to learn about the scheme.

    Now, after a specific company/startup fulfills all the eligibility criteria for the ASPIRE scheme, the Ministry of the government of India which deals with these schemes proceeds with the general processes and offers all the benefits to the beneficiaries under the scheme.

    The Goal of ASPIRE | What did the GOI Decide via ASPIRE Scheme?

    Funding Allocation of ASPIRE
    Funding Allocation of ASPIRE

    Under the ASPIRE scheme, the Government of India wanted to build 80 Livelihood business incubators via NSIC, KVIC or Coir Board, or any other institution/agency of the Central or State government on their own or via any of the agency or scheme. This is to be done with the sole aim of promoting innovation, and entrepreneurship and boosting the growth of the agro-industry.

    How can Startups Reap the Benefits of the ASPIRE Scheme?

    Both traditional enterprises and startups are eligible for the benefits under the ASPIRE scheme. Now, if you are also associated with enterprises and startups that are eligible for ASPIRE, then you should urge the company to send an application to the ASPIRE Scheme steering committee, which works under the Ministry of MSME. This committee will extend support in the overall policy, coordination, management, and more. It will first deal with the general process and would then percolate the benefits to the enterprises that fulfill the eligibility criteria.

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    Conclusion

    Looking at the growth of startups and an increasing sense of passion among entrepreneurs, the Indian Government is trying to make as many efforts as possible to support them. Therefore, the ASPIRE Scheme is yet another initiative by the government of India to promote entrepreneurship and innovative startups in the agro-industry. The above article will help you understand the goals and objectives of the scheme, its eligibility criteria, and how startups can take advantage of it.

    FAQs

    When was ASPIRE Scheme launched and Why?

    The ASPIRE scheme was launched in 2015 and is aimed to help foster entrepreneurship.

    What does ASPIRE stand for?

    ASPIRE stands for A Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship.

    Which Government body controls ASPIRE scheme?

    ASPIRE scheme falls under the Ministry of Micro, Small and Medium Enterprises, Government of India.

  • SIDBI – Addressing Both Financial And Developmental gaps In The MSME Ecosystem

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by SIDBI.

    Small business owners and entrepreneurs in India’s underdeveloped areas can get loans, credit, insurance, access to savings accounts, and money transfers via microfinance. Many who do not have conventional financial capital profit from microfinance.

    Small Industries Development Bank of India (SIDBI) is a non-profit financial institution dedicated to assisting India’s micro, small, and medium-sized businesses in their growth and development.

    SIDBI – Company Highlights

    Startup Name Small Industries Development Bank of India
    Headquarters Lucknow, Uttar Pradesh, India
    Industry Commercial Bank, Regulatory Body
    Jurisdiction Ministry of Finance, Government of India
    Formed April 1990
    Agency Executive Siva S Ramann
    Website www.sidbi.in

    Sidbi – Latest News
    About Sidbi and How it Works?
    Sidbi – Mission and Vision
    Sidbi – Name, Logo and Tagline
    Sidbi – Founder and History
    Sidbi – Products and Services
    Sidbi – Revenue and Growth
    Sidbi – Investments
    Sidbi – Competitors
    Sidbi – Awards and Achievements
    Sidbi – Future Plans
    Sidbi – FAQs

    Sidbi – Latest News

    As of May 2021, SIDBI is hiring IT experts, including a Chief Technology Officer.

    SIDBI, which panders to the funding needs of micro, small, and medium enterprises, stated that it aims to promote and improve the flow of credit to such businesses and resolve both economic and technological gaps in the MSME ecosystem. The Small Industries Development Bank of India (SIDBI) will employ information technology professionals on a contract basis, including a chief technology officer (CTO), to improve customer service in the face of technology’s growing importance.

    About Sidbi and How it Works?

    The Small Industries Development Bank of India (SIDBI) is India’s apex regulatory authority for microfinance institution regulation and certification. It is governed by the Ministry of Finance of the Government of India, which is based in Lucknow and has offices around the country. SIDBI is a commercial bank established in Lucknow, Uttar Pradesh, India.

    Small Industries Development Bank of India is a wholly-owned subsidiary of the Industrial Development Bank of India, which was founded under a special Act of Parliament in 1988 and went into effect on April 2, 1990. The bank provides services such as promoting, financing, and developing the micro, small, and medium-sized firm sector, as well as coordinating the functions of institutions involved in similar activities.

    Its objective is to provide refinancing and short-term lending to businesses, and it is the MSME sector’s primary financial institution. SIDBI also manages the functioning of organizations that do similar tasks. The bank provides debt funding to small and medium-sized businesses in the form of loans. Beverages, meals, banking institutions, financial institutions, industrial, mechanical, and electrical parts, database software, cloud computing, E-commerce, and many more industries are served by the bank.

    Through the SIDBI Foundation for Micro Credit, SIDBI is actively involved in the creation of Micro Finance Institutions and assists in the extension of microfinance through the MFI method. Its promotion and development program focuses on the promotion of rural businesses and the development of entrepreneurship.

    It runs a refinance program called Institutional Finance with the aim to expand and support money supply to the MSE sector. SIDBI assists Banks, Small Finance Banks, and Non-Banking Financial Companies with Term Loans through this program. SIDBI lends directly to MSMEs, in addition to refinancing operations.

    Functions of SIDBI :

    • The SIDBI refinances loans made to small businesses by banking institutions.
    • Assists in the expansion of marketing channels for Small Scale Industries’ products.
    • It provides small-scale businesses with services like factoring and leasing.
    • In semi-urban areas, promotes employment prospects in small-scale industries.
    • Starts the process of upgrading technology.
    • Allows credit to flow to Small Scale Industries as working capital or term loans.

    Sidbi – Mission and Vision

    SIDBI’s mission statement says “To facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system”

    SIDBI’s vision statement says, “To emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer – friendly institution and for enhancement of share – holder wealth and highest corporate values through modern technology platform.”

    Sidbi – Name, Logo and Tagline

    SIDBI stands for Small Industries Development Bank of India.

    Sidbi' s Company Logo
    Sidbi’ s Company Logo

    Sidbi – Founder and History

    The Small Industries Development Bank of India (SIDBI), established on April 2, 1990, by an Act of the Indian Parliament, serves as the primary financial institution for the promotion, financing, and development of the Micro, Small, and Medium Enterprise (MSME) sector, as well as for the coordination of functions of institutions engaged in similar activities.  

    SIDBI’s activities have stayed committed to the national goals of poverty reduction, job creation, and entrepreneurial development in the MSME sector. The following are significant landmarks in SIDBI’s history:

    • Founded in 1990;
    • Microfinance foundation built-in 1994;
    • Technology bureau for small enterprise (TBSE) established in 1995, which later became India SME technology services.
    • SIDBI venture capital limited;
    • Credit guarantee fund trust for micro and small enterprises;
    • SMERA rating ltd.
    • India SME Asset Reconstruction Company Ltd., founded in 2008. (ISARC)
    • Setup MUDRA in 2015
    • 2016 – Trade receivables discounting system (TReDS)
    • In 2017, a certified credit counselor was established (CCC)
    • Launch of MSME pulse and CriSidEx in 2018

    Sidbi – Products and Services

    SIDBI is a non-profit organization that manages and finances the different organizations involved in the development of small businesses. SIDBI runs a refinance program in which it provides term loan assistance to banks, small finance banks, and non-banking financial firms in order to sustain the money supply.

    SIDBI’s 16.73 percent holding, which is the largest individual holding, is held by the State Bank of India. The following are some of SIDBI’s additional services:

    • Small-scale industry refinancing (SSI)
    • It provides aid with SSI import and export.
    • It offers SSI with seed cash and low-interest loans.
    • SIDBI assists with factoring, leasing, and HP financing, among other things.

    Sidbi – Revenue and Growth

    Sidbi, increased its net profit by 9% to INR 630 crore in the quarter ended December 20 from INR 578 crore the year before.

    SIDBI received a liquidity support of INR 15000 crore from the Reserve Bank of India in April as a special refinance facility at the repo rate in April 2021 to deal with MSME funding during the pandemic, in addition to the government’s drive for MSME financing. From INR 816 crore in Q3’FY’20 to INR 840 crore in Q3’FY’21, the company’s net interest income increased by 3% .

    “The credit growth to the MSME sector has been strong despite the impact of the COVID-19 pandemic and this has helped us to achieve encouraging financial performance with a boost to our loan book” said, V Satya Venkata Rao, deputy managing director, Sidbi. “We have also managed to keep our asset quality under check by. Our focus will be on sustaining the growth and scalability with various measures targeted towards recovery and strengthening of the MSME ecosystem.”

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    Sidbi – Investments

    Date Organization Name Round Amount
    Mar 30, 2021 Annapurna Microfinace Private Equity Round $30M
    Jul 10, 2019 Capital Small Finance Bank Private Equity Round ₹430M
    Aug 24, 2018 Fincare Private Equity Round ₹950M
    Oct 18, 2017 Capital Small Finance Bank Venture Round ₹243.5M
    Aug 28, 2017 FieldAssist Debt Financing –
    Aug 1, 2017 Clusterzap Seed Round $150K
    Mar 7, 2017 Fincare Private Equity Round ₹5B
    Sep 30, 2016 Utkarsh Micro Finance Venture Round ₹4B
    Dec 22, 2015 RCI Cash Management Series A –
    Jul 30, 2015 Pragmatix Services Venture Round $2.4M

    Sidbi – Competitors

    The top 10 competitors in SIDBI’s competitive set are moolya, LetsVenture, ah! Ventures, Startups.co, GREX Alternative Investments Market Pvt. Ltd., BitGiving, Applyifi , Equity Crest, TermSheet, Smergers, Startify, Catapooolt and Gust.

    Sidbi – Awards and Achievements

    From time to time, SIDBI has received a number of international prizes and honors. Several of SIDBI’s models are being copied more and more these days (i.e. MFI led inclusive growth, community linked financing model, Industry Association-BMO- led financing model, participatory development approach, cluster development – both hard infrastructure development support as also Making Market Work For MSMEs through business development service).

    SIDBI was named the winner of the SABERA – Social and Business Enterprise Responsible Award 2020 in two categories: “Most Innovative Development Sector Project” and “Responsible Business of the Year.”

    SIDBI’s responsive, inclusive, and impact-oriented activities for instilling entrepreneurship culture under Mission Swavalamban were recognized with this award. It also looked at creative approaches/initiatives that enhance the enterprise ecosystem and ease access to financial and non-financial services for entrepreneurs in India via digital bouquet offers.

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    Sidbi – Future Plans

    In light of the growing role of technology, the Small Industries Development Bank of India would engage information technology specialists on a contract basis, including a chief technology officer (CTO). SIDBI, which provides funding for micro, small, and medium-sized businesses (MSMEs), stated that its goal is to improve and enhance credit flow to MSMEs while also addressing financial and developmental gaps in the MSME ecosystem.

    Sidbi – FAQs

    What does SIDBI do?

    The bank provides services such as promoting, financing, and developing the micro, small, and medium-sized firm sector, as well as coordinating the functions of institutions involved in similar activities.

    When was SIDBI founded?

    The Small Industries Development Bank of India (SIDBI) was established on April 2, 1990.

    What are the objectives of SIDBI?

    To boost the marketing of small-scale industry products. Upgrade technologies while also doing small-scale unit upgrading. To provide additional financial help to the ancillary and smaller industry on a small scale. To promote sectors that provide jobs.

    What companies do SIDBI compete with?

    The top 10 competitors in SIDBI’s competitive set are moolya, LetsVenture, ah! Ventures, Startups.co, GREX Alternative Investments Market Pvt. Ltd., BitGiving, Applyifi , Equity Crest, TermSheet, Smergers, Startify, Catapooolt and Gust.

    Is SIDBI a subsidiary of IDBI?

    Yes, SIDBI is a subsidiary of IDBI.