Startups and companies supported through the government’s Electronics Development Fund (EDF) have raised nearly ₹22,553 crore in total funding, Union Minister for Electronics and Information Technology Ashwini Vaishnaw informed Parliament.
Replying to a question in the Lok Sabha, Vaishnaw said that the EDF had invested ₹257.77 crore across eight SEBI-registered venture funds, known as daughter funds, as of June 30, 2026.
These funds have further invested ₹1,335.77 crore in 128 startups and companies working in the electronics and information technology sectors. According to the government, EDF’s investments helped these funds attract nearly five times more capital from private markets.
The companies supported through the fund have also created or acquired 373 intellectual properties, including technology innovations and patents.
The Electronics Development Fund was introduced under the National Policy on Electronics, 2012, with its framework announced during Digital India Week in 2015. It was officially launched in February 2016 to encourage innovation and growth in India’s electronics system design and manufacturing sector.
Unlike traditional funding models, EDF does not directly invest in startups. Instead, it works as a fund-of-funds by investing in professionally managed SEBI-registered venture funds. These daughter funds then provide financial support to startups developing new technologies in electronics, semiconductor design and IT sectors.
Canbank Venture Capital Funds Ltd manages the EDF, while the Ministry of Electronics and Information Technology acts as the anchor investor.
Vaishnaw said startups are selected based on factors such as innovation, development of indigenous technology, intellectual property potential, technical strength of the founding team and the ability to build scalable businesses.
Among Indian states, Karnataka received the highest share of EDF-backed investments. A total of 90 companies in the state received funding, including 89 companies in Bengaluru and one in Belagavi, with investments of ₹854.54 crore.
Telangana’s Hyderabad received investments in seven companies worth ₹129.97 crore. Maharashtra, including Mumbai and Pune, saw eight companies receive ₹142.48 crore in funding.
Other states that received EDF-backed investments include Tamil Nadu with five companies receiving ₹62.24 crore, Delhi with six companies receiving ₹99.2 crore, Kerala with six companies receiving ₹13.30 crore and Haryana with three companies receiving ₹23.87 crore.
The government’s focus on electronics innovation comes as India continues to strengthen its semiconductor and manufacturing ecosystem. Recently, the Union Cabinet approved the second phase of the Indian Semiconductor Mission, known as Semicon 2.0, with an investment plan of ₹1.28 lakh crore.
The programme will focus on chip design, semiconductor manufacturing, packaging, equipment, materials, research and skill development. It will also support startups working on semiconductor intellectual property, chip designs and advanced technology products.
The government has also approved a ₹62,500 crore Mobile Phone Manufacturing Scheme to boost domestic smartphone production through incentives linked to sales, local sourcing and research activities.
