Karnataka Leads Centre's Electronics Development Fund with 90 Firms, Attracts 64% of Total Investments

Karnataka has attracted the highest share of investments under the Centre's Electronics Development Fund (EDF), emerging as the leading state by the number of companies backed through the programme, as per The Economic Times news report. 

According to the data presented by the Ministry of Electronics and Information Technology (MeitY) in Parliament showed that 90 of the 128 EDF-supported companies are based in Karnataka, receiving investments of nearly ₹854.5 crore through EDF-backed venture capital funds. 

Karnataka Accounts for Nearly Two-Thirds of Investment 

As of June 30, 2026, the eight venture capital "daughter funds" backed by the EDF had invested ₹1,335.7 crore in 128 startups and companies.  

Karnataka-based firms received ₹854.5 crore, accounting for around 64% of the total investments. Of the 90 beneficiary companies in the state, 89 are based in Bengaluru and one in Belagavi. 

Telangana and Maharashtra Follow 

After Karnataka, Telangana emerged as the 2nd-largest recipient under the scheme, with seven companies based in Hyderabad attracting nearly ₹130 crore in EDF-backed investments. 

Maharashtra ranked next, where eight companies across Mumbai and Pune received ₹142.4 crore. Delhi accounted for six companies that secured ₹99.2 crore, while five Chennai-based companies received investments totalling ₹62.2 crore. 

Fund Supports Electronics and IT Companies 

The Electronics Development Fund operates as a fund of funds, with the Centre investing ₹257.7 crore in eight SEBI-registered venture capital funds. These funds have invested more than five times that amount in technology companies.  

Of the 128 beneficiaries, 77 companies operate in the electronics system design and manufacturing (ESDM) sector, while 51 companies belong to the information technology sector. 

Portfolio Companies Raise Over ₹22,500 Crore 

According to MeitY, companies backed by the EDF have collectively raised around ₹22,553.8 crore and created or acquired 373 intellectual property assets.  

The ministry added that the fund completed its investment phase in February 2024 and is currently in the divestment phase, while the daughter funds continue to monitor their portfolio companies. 

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Conclusion 

Karnataka accounted for the largest share of investments under the Electronics Development Fund, with 90 companies receiving ₹854.5 crore. The EDF-backed companies have collectively raised over ₹22,553 crore, while the fund has now entered its divestment phase. 

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