Last updated: December 18th, 2019 12:53 PM

Maharashtra State Social Venture Fund

Maharashtra State Social Venture Fund is an Alternative Investment Fund and it works as a close-ended unit scheme of Maharashtra Laghu Vikas Trust. SIDBI Venture Capital Limited is the Investment Manager, and SIDBI Trustee Company Limited is the sole Trustee of MS Fund. The Fund has been registered with Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012 as a Category-I AIF Fund under the subcategory of Social Venture Fund. The primary investment focus of the fund is to identify and invest in profitable and scalable business ventures, including an innovative business model or new products and technologies. In this article, we will look at the Maharashtra State Social Venture Fund in detail. Know more about the Tex Venture Fund

Objective of Maharashtra State Social Venture Fund

The Maharashtra State Social Venture Fund’s investment objective is to generate superior returns by investing start-up, early and growth stage capital primarily in MSMEs based in India which would add economic or social or environmental value to the state of Maharashtra.

Benefits of Maharashtra State Social Venture Fund

Maharashtra State Social Venture Fund generally offer a triple bottom line in ways that they create enterprises with the novel business model, create a positive impact on the lives and living conditions of the general population of the society and have a positive environmental impact.

Eligible Criteria for Investee Companies

The eligibility criteria to obtain the Maharashtra State Social Venture Fund are explained in detail below:

• The investee companies of the MS Fund are expected to be socially relevant
• Economically viable and sustainable companies can get the MS fund
• The companies should provide access to market to the common people as consumers, producers, employees or as entrepreneurs

Investment Criteria

The primary investment focus of Maharashtra State Social Venture Fund is to identify and invest in profitable and scalable business ventures including the innovative business model or new product and technology which would have potential to provide social benefits (economic, societal, environmental) to the people of Maharashtra. Know more about the Samridhi Fund

Target Sectors

The Maharashtra State Social Venture Fund would be a sector agnostic fund. The target sectors for fund’s investment may include the following industries:

• Health-Care
• Education
• Renewable & Non-Conventional Energy
• Agri ancillary
• Food processing
• Energy efficiency-transmission-distribution
• Clean-Technology
• Light Engineering
• Information Technology
• Medical Devices
• Bio-Medical
• Water and related technologies
• Consumption lead sectors

Fund Tenure

The tenure of the Maharashtra State Social Venture Fund is seven years.

Funding Pattern

The Maharashtra State Social Venture Fund will be invested in eligible companies by way of equity (unlisted securities) or convertible instruments.

Target Period

The target period for the Maharashtra State Social Venture Fund Investment will generally be 4 to 5 years. The Fund would strive to achieve attractive risk-adjusted returns through long term capital.

Documents Required

Documents required for Maharashtra State Social Venture Fund is listed as follows:

Pertaining to Company

• Tex Venture FundMOA and AOA document
• MSME registration documents
• KYC / Due Diligence details (PAN, VAT, TIN, Sales Tax, Excise and Customs) of Company, Service Tax)
• The certificate under State Tax on Profession, The Trades Unions Act 1926 and Employment Act, 1975
• A certificate under the Shop and Commercial Establishments Act.
• Tax returns of the last three financial years

Pertaining to Financial

• Audited financial statements of the firm for the last three financial years, with the schedules, notes
• Auditor’s Report
• Un-audited financial statements of the firm for the most recent date.
• The detailed financial model with assumptions and linkages

Pertaining to Capital Structure

• Details of investment and the investors with a copy of Subscription and Shareholding Agreements
• Corporate Structure – Detailed block diagram indicating holdings, cross-holdings in various associate firms, subsidiaries

Company Details

• Incorporation details, year wise milestones achieved
• Certifications and JV details
• Government and statutory approvals
• IP details
• External credit rating if any, with rating rationale and Credit rating history

Business Model

• Detailed industry and business information
• Market and industry information such as background, growth, market scale, pain points, opportunity including sources of information
• Manufacturing process flowchart
• Competition players
• Description of Products and services (value propositions and differentiation)
• Sales and marketing
• Geographical presence
• Key customers and suppliers
• Order book (historical / executed / pending / underbidding with timeline)

Maharashtra State Social Venture Fund Application Procedure

The Maharashtra State Social Venture Fund application procedure is explained in detail below: To obtain the Maharashtra State Social Venture Fund, the applicant needs to submit an application form in the prescribed format. The application form for Maharashtra State Social Venture Fund is attached here: After providing the details in the application form, forward the application to msfund@sidbiventure.co.in. Once the application is verified, the fund will be initiated.