Zerund Manufacturing, a brainchild of three fresh engineering graduates of 2018, manufacturing special bricks, has earmarked a niche for itself for the product it manufactures and the way it has managed the required finances for such an endeavour. It is not your regular manufacturing unit built with a heavy dose of promoters’ capital and finances from banks. Rather, it is a start-up, one among the 459 registered ones in the State, literally built brick-by-brick by Mousum Talukdar, David Pritam Gogoi and Rupam Choudhury after two years of careful planning and guidance by Assam Start-up Nest, a Government of Assam initiative. Having tasted early success, these entrepreneurs are keen to scale it up. The problem they are facing is infusion of capital required to match their aspiration.
“We wanted to be employers right from the day we started. So, naturally we wanted to expand beyond the geography of Assam. Recently, we have secured a patent for a premix for manufacturing bricks without the massive infrastructure required for manufacturing bricks. Now, we were looking for capital,” David told Asom Barta.
Not all those who come to us qualify for funding. In such a case, we advise them on the way forward. To those who fulfil the requirements
of funding, we evaluate their potential to see whether we want to opt for equity in their start-up or provide them lending assistance. We then send their proposal to competent authority for final approval. Even after we have invested in them, we will continue to monitor them– Rupam Nath
It is for scenarios like this that the Assam Start-up Venture Capital Fund, an initiative of the Government of Assam in sync with the Small Industrial Development Bank of India (SIDBI) will come to the aid of these start-ups which want to dream big.
“Its objective is to invest in scalable business ventures including innovative business models or new products and technologies in start-ups making up for the lack of angel investor or angel investment fund in Assam,” Assam Industrial Development Corporation Managing Director Manavendra Pratap Singh told Asom Barta.
This fund is to aid and assist early and growth-stage MSMEs. The strategy involves investing in manufacturing and services start-ups which have the potential to become leaders in their respective industry segment.
Rupam Nath, a SIDBI official, told this reporter that the Fund has a capital base of ₹200 cr, of which ₹100 cr has been provided by the Government of Assam. SIDBI and the Fund of Funds of the Government of India has put in ₹65 cr. “We received a registration certificate from Securities and Exchange Board of India (SEBI) in the financial year 2022-2023.
To avail funding under this Fund, the start-up has to meet set criteria after which it is approved by a three-member investment board consisting of representatives from Assam Government, SIDBI and an independent member.
“Not all those who come to us qualify for funding. In such a case, we advise them on the way forward. To those who fulfil the requirements of funding, we evaluate their potential to see whether we want to opt for equity in their start-up or provide them lending assistance. We then send their proposal to competent authority for final approval. Even after we have invested in them, we will continue to monitor them,” Nath informed this newsletter.
Zerund Manufacturing is the first Start-up which has been selected for funding under the scheme. “There are others whose applications are at the primary stage of evaluation,” Nath informed this reporter. “That a start-up like Zerund will take roots in Assam was inconceivable a few years ago. This fund will boost the start-up ecosystem in the State and contribute to its economy and employment.”
The AIDC MD is hopeful that in the coming years the capital invested in the fund will go up to ₹400 crore. “A fund like this will definitely aid a new dimension to start-up ventures in Assam,” he said.
At present, we have been tagged as a ‘Category A leader State’. We are keen to set-up incubation centre in various places of the State on the line up of Asam Start-up. We are even trying to facilitate mentoring of upcoming ventures by those who have earmarked a name for themselves in the area. We have also signed an MoU with IIT for technological assistance, while continuing to work towards creating an environment for Angel-investors to come in a big way in the State,” Singh said.
