India and Japan will launch an ambitious $187-million fund of funds to promote start-ups when Prime Minister Narendra Modi meets his Japanese counterpart Shinzo Abe at the G-20 meet in Osaka this week.
“The fund has created great interest amongst investors in Japan, and Letter’s of Intent will be signed with four major investors, including Mizuho Bank, Development Bank of Japan, Nippon Life, and Suzuki, who will participate as lead LPs (limited partners) in the fund of funds,” an official close to the development told BusinessLine.
The Indo-Japan Emerging Technology & Innovation fund, a fund of funds (FoF), with a unique proposition of investing and managing a portfolio of India dedicated to 15 to 25 VC (venture capital) funds, will undertake its first closure around the end of September this year, the official added. While $150 million (about 80 per cent) is being raised from Japan, $37 million (20 per cent) will be raised from India.
Reliance Nippon Life Asset Management Ltd (RNAM), the Indian asset management company of Nippon Life, will manage the fund, the official added. The FoF is expected to invest in more than 200 unique Indian technology start-ups in emerging fields, including IOT (internet of things), AI (artificial intelligence), fintech, healthcare, consumer, education, robotics and automation and B2B software.