After the controversy alleging favoritism in the initial set of direct startup investments made by the Research, Development, and Innovation (RDI) Fund – including questioning by an opposition MP in parliament – Economic Times has now published a news item critiquing the Fund’s slow pace in selecting Venture Capital funds to invest in.
Extracts:
VC funds were shortlisted for the RDIF proposal in May but fund disbursal has yet to begin, said a deeptech investor, who did not wish to be identified. “It has been three months, and nothing has moved and there is no clarity on when the funding is now expected,” he said.
At least two investors told ET that the RDIF was expected to be a significant share of their funding. The delay in fund disbursal also impacts the startups the VC firms had planned to invest in. Another VC firm is now looking at other sources for investment, and its fund size might reduce if the funding from the RDIF does not come through.
Abhay Karandikar, former secretary, Department of Science and Technology, was overseeing the RDIF. In May he moved to the NITI Aayog, leaving the post vacant. Professor Umesh V Waghmare took charge in July as the secretary and is leading the RDIF.
