India's Rs 50,000 cr SRI Fund, built to fix VC tech bias, ends up backing tech-heavy retail bets

The Self Reliant India Fund, conceived as a lifeline for MSMEs sidelined by venture capital, has channelled capital into 750 companies and catalysed Rs 16,000 crore — but 70% of its deployments skew tech-heavy, including consumer brands like Chai Point, Biryani by Kilo and Truemeds.

— Source publishedThu, 4 Jun, 2026, 08:00 IST·First seen Thu, 4 Jun, 2026, 11:19 IST·Source The Ken · Free list

What happened

India's Rs 50,000 crore SRI Fund, meant to back MSMEs ignored by VCs, has instead funded mostly tech startups including retail brands Chai Point and Biryani by

Key facts

  • Rs 50,000 crore
  • Rs 2,000 crore top-up
  • 20% govt contribution
  • 750 companies backed
  • Rs 16,000 crore catalysed
  • Rs 2,700 crore raised
  • 70% tech-heavy

Why this matters

Tech-enabled consumer brands in food, health and retail just gained a deep-pocketed strategic backer with a policy mandate to keep deploying, making SRI-portfolio companies more acquisitive — and more expensive — over the next 18 months.