Karnataka leads with 70% of startups backed under center's electronics fund, 89 of 128 based in Bengaluru
&imwidth=600&imheight=450&format=webp&quality=medium "Karnataka leads with 70% of startups backed under center's electronics fund, 89 of 128 based in Bengaluru")
Representative image. Photograph: (Magnific)
The data also revealed that of the 90 Karnataka-based companies, 89 startups which are backed under the fund are located in Bengaluru, 56 in electronics manufacturing and 33 in IT, while one is based in Belagavi.
Over 70 per cent of the startups in Karnataka were backed under the Centre's Electronics Development Fund (EDF), with firms from the state attracting approximately two-thirds of the investments made through the scheme's venture capital network. In a written reply to the Lok Sabha on Wednesday, the electronics and information technology ministry shared data indicating that 90 of the 128 companies funded under the EDF are based in Karnataka.
The data also revealed that of the 90 Karnataka-based companies, 89 startups which are backed under the fund are located in Bengaluru, 56 in electronics manufacturing and 33 in IT, while one is based in Belagavi. Consecutively, these firms have attracted Rs 854.5 crore, or about 64 per cent of the investments made by the fund's eight daughter funds, which highlights the dominance of Bengaluru in India, marking the city as having one of the best electronics and deep-tech startup ecosystems.
The rest of the companies are spread across a handful of technology hubs, including Hyderabad, Pune, Delhi, Chennai, Mumbai, Gurugram, Noida, Jaipur, Faridabad and Kolkata. The centre has set up EDF as a "fund of funds" to resolve the shortage of early-stage capital for startups working in electronics, nanoelectronics and information technology.
Also read: Delhi Consumer Court fines Indian Railways Rs 25,000 for making RAC passengers share one blanket
Fosters Make in India initiative
Rather than putting money directly into individual companies, the government channels its investment through professionally managed venture capital funds, which then finance promising technology startups. This approach is aimed at fostering homegrown product development, boosting intellectual property creation, and cutting India's reliance on imported technology.
Trending Stories
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
As of February 28, 2026, the Centre had committed Rs 257.77 crore across eight daughter funds. Collectively, these funds have invested Rs 1,335.77 crore in 128 startups and companies, generating over 22,700 jobs and contributing to the development or acquisition of more than 300 intellectual properties, government data shows.
These figures emerge as the government broadens its electronics manufacturing agenda beyond mobile phone assembly, extending into components, semiconductors, and advanced electronics through initiatives like the Electronics Components Manufacturing Scheme (ECMS), designed to boost domestic value addition and reinforce India's standing in global electronics supply chains.
