Driving Impact with Capital: A Conversation with Amey Belorkar of IDBI Capital
Amey Belorkar
Senior Vice President
IDBI Capital Markets & Securities
In an exclusive interaction with Engineering Review, Amey Belorkar, Senior Vice President at IDBI Capital Markets & Securities, sheds light on the pivotal role of Alternative Investment Funds (AIFs) in propelling India’s strategic sectors forward. From defence and aerospace to innovation and social equity, he discusses how IDBI Capital’s thematic AIFs are bridging capital gaps, fostering indigenous innovation, and aligning with national missions like Make in India and Atmanirbhar Bharat. Excerpts:
Q1. Can you provide an overview of IDBI Capital’s Alternative Investment Fund (AIF) and its strategic role in India’s financial ecosystem?
IDBI Capital Markets & Securities Limited (IDBI Capital) has been a pioneer in managing thematic Alternative Investment Funds (AIFs) that align with India’s strategic economic priorities. Our AIF platform focuses on sectors like defence and aerospace, innovation and technology, and social impact, creating specialized vehicles that mobilize institutional capital into high-growth, high-impact areas. These funds not only deliver competitive financial returns but also strengthen India’s industrial base, promote self-reliance, and foster socio-economic inclusion. By bridging the capital gap in niche sectors, our AIFs support the government’s initiatives like Make in India, Atmanirbhar Bharat, and Startup India
Q2. How do the Maharashtra Innovation and Technological Development Fund (MITDF) and Maharashtra Defence and Aerospace Venture Fund (MDAVF) align with the government’s “Make in India” initiative?
Both the Maharashtra Defence and Aerospace Venture Fund (MDAVF) and Maharashtra Innovation and Technological Development Fund (MITDF) are purpose-built to support the Make in India mission:
• MDAVF focuses on domestic defence manufacturing, investing in companies involved in missile systems, avionics, UAVs, and aerospace components. These investments enhance indigenous capabilities and reduce reliance on imports.
• MITDF promotes technological self-reliance by supporting startups and businesses engaged in AI, deep-tech, industrial automation, and digital transformation, nurturing homegrown IP and innovation-led growth.
• Both funds strengthen domestic value chains, create jobs, and foster sustainable industrial development.
Q3. What are the key investment criteria for businesses seeking funding from IDBI Capital’s AIFs, and how do you evaluate their growth potential?
• Our investment approach is anchored on three core criteria:
• Sectoral Relevance: Alignment with strategic sectors such as defence, aerospace, technology, and social impact.
• Scalability & Financial Viability: Ability to achieve scale and generate sustainable cash flows.
• Impact Potential: Contribution to import substitution, job creation, and inclusive growth.
We conduct rigorous due diligence encompassing technology validation, market opportunity, management capability, and ESG compliance. Investments are further assessed for their alignment with national priorities and potential to generate long-term value.
Q4 . How does IDBI Capital’s AIF contribute to fostering indigenous innovation, job creation, and infrastructure development?
IDBI Capital’s AIFs act as a catalyst for:
• Indigenous Innovation: Funding R&D-intensive businesses in defense, aerospace, and emerging technologies.
• Job Creation: Facilitating the expansion of portfolio companies leads to thousands of direct and indirect jobs, particularly in manufacturing and high-tech industries.
• Infrastructure Growth: Investments often support capacity building, modern manufacturing facilities, and supply chain enhancements that contribute to India’s industrial infrastructure.
Q5. Can you elaborate on the Bharat Ratna Dr. Babasaheb Ambedkar Investment Fund and its impact on SC/ST entrepreneurs in India?
The Bharat Ratna Dr. Babasaheb Ambedkar Investment Fund is a pioneering initiative designed to empower SC/ST entrepreneurs by providing growth capital and strategic support. The fund targets sectors such as manufacturing, services, and infrastructure, promoting inclusion and diversity. It has:
• Enabled businesses led by SC/ST entrepreneurs to access institutional capital.
• Created jobs within marginalized communities.
• Fostered a pipeline of sustainable businesses contributing to India’s inclusive growth story.
• Our long-term goal is to establish a self-sustaining ecosystem where SC/ST-led businesses thrive and serve as role models for future generations.
Q6. What role does ESG compliance play in IDBI Capital’s AIF investment strategy, and how do you balance commercial returns with social impact?
ESG (Environmental, Social, and Governance) factors are embedded in our investment philosophy:
• Environmental: Investments in clean tech and sustainable businesses.
• Social: Promoting inclusion through the SC/ST fund and funding sectors with high employment potential.
• Governance: Ensuring strong governance frameworks within portfolio companies.
We balance commercial returns with developmental impact, selecting businesses that deliver strategic value while meeting ESG benchmarks and ensuring responsible investing.
Q7. With plans to launch new venture capital funds focused on emerging technologies and IPO-ready businesses, what market trends are driving these initiatives?
We are exploring new venture capital funds focused on:
• Emerging Technologies: Deep-tech, AI, semiconductors, and green energy.
• IPO-Ready Businesses: Supporting scale-ready companies preparing for public markets.
Trends driving these initiatives include India’s digital transformation, the push for semiconductor manufacturing, renewable energy growth, and an increasing appetite for impact investments. Rising investor interest in specialized sectors and thematic funds further support these plans.
Q8. What are the biggest challenges in managing AIFs in India today, and how does IDBI Capital navigate regulatory and market uncertainties?
Managing AIFs in India involves navigating:
• Regulatory Complexity: Frequent policy updates necessitate robust compliance mechanisms.
• Liquidity Constraints: Designing structured exit strategies to ensure investor confidence.
• Market Volatility: Balancing risk and returns, especially in niche sectors with longer gestation periods.
Our strengths lie in deep sectoral expertise, strong governance frameworks, and close engagement with regulatory bodies, allowing us to manage risks while capitalizing on emerging opportunities.
