News: SBI Cap to launch $100-m VC fund in JV

(BL 29/08/2006) Mumbai - SBI Capital Markets Ltd (SBI Cap), the investment banking subsidiary of State Bank of India, and Softbank Investment, the venture capital arm of Japan's SBI Holdings Inc, on Monday announced their plans to launch a new $100-million venture capital fund.

Investment areas

The fund will invest in knowledge-based industries in India such as BPO, KPO, life sciences, online businesses, technology-enabled design and manufacturing and in areas of nanotechnology and environmental technology, said a press release.

The range of investment will be from $5 to 10 million with a holding period of three to five years.

Softbank Investment currently manages 18 venture capital funds, making it one of the largest, most active venture capitalists in Asia, the release said.

This is the SBI Group's first investment in VC funds and Japan's first major India focused VC fund, the release said.

The press release also quoted O. P. Bhatt, Chairman, SBI, as saying the alliance is "a small but significant step towards creating and nurturing knowledge-based industries in India."

Yoshitaka Kitao, CEO, Softbank Investment, said, "Our fund with SBI Cap is only a first step in a well-planned strategy to partner with leading financial services companies and deliver creative financial products focused on India.

"We will soon be making some long-term announcements about our comprehensive India strategy."