The European Investment Bank (EIB) and the State Bank of India (SBI) have agreed to back the new Neev Fund II, which will invest up to €100 million in Indian small and medium-sized enterprises (SMEs).
Neev II Fund, which is under the management of SBICap Ventures (a step-down subsidiary of SBI), will provide growth and expansion capital to companies offering solutions for clean energy, electric vehicles, efficient use of raw materials, and water and circular economy projects in the country.
“The fund will enable Indian innovative and emerging companies to fund their growth through equity or quasi-equity instruments,” according to a joint statement issued by EIB, SBI and the European Commission.
EIB Vice-President and in charge of operations in India, Christian Kettel Thomsen said: “Innovative solutions often require innovative forms of financing, such as private equity funds. Our partnership with the State Bank of India will create a much-needed source of equity financing for climate action and environmental sustainability solutions offered by innovative SMEs.”
SBI Chairman Dinesh Khara observed that Neev Fund II will provide equity to SMEs focusing on mitigating climate risks, promoting social development, job creation and gender equality.