RDI Fund backs 19 second-tier fund managers with ₹7,131 crore commitment

The RDI Fund has announced its inaugural slate of 19 second-level fund managers, pledging ₹7,131 crore in capital commitments to strengthen India's MSME ecosystem. The selected managers comprise 14 alternative investment funds and five research-focused organisations positioned to identify and support high-potential enterprises across sectors and geographies.

As second-level fund managers, these entities will serve as intermediaries between the RDI Fund and ground-level investors, responsible for identifying promising MSMEs and channelling capital to support their growth trajectories. The structure is designed to create a multiplier effect, with private sector investors expected to match or exceed the RDI Fund's contribution on a rupee-for-rupee basis.

The diversified composition of the first cohort reflects an intent to foster varied investment strategies and sectoral expertise. While alternative investment funds will focus on direct equity and quasi-equity instruments, the research organisations are expected to provide market intelligence and due diligence support to strengthen investment decisions and outcomes.

The initiative underscores efforts to address the persistent financing gap faced by India's MSME sector, which comprises millions of enterprises but struggles to access institutional capital at scale. By deploying capital through multiple channels and leveraging specialized fund managers, the RDI Fund seeks to create sustainable pathways for enterprise development and job creation across the country.