Renu Suresh

Expert

Published on: Sep 17, 2026

Tex Venture Fund

The Ministry of Textiles, Government of India, has launched the Tex Venture Fund with an initial corpus of Rs.35 crores in collaboration with the Small Industries Development Bank of India (SIDBI) to support start-up entrepreneurs in the textile sector. This fund is registered with the Securities & Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012, as a Category-I SME Fund. The primary aim is to foster the development of the power loom and related textile sectors.

Objectives

The SIDBI Venture Capital Fund Limited (SVCL) invests on behalf of the Ministry of Textiles, offering equity to kick-start or expand MSMEs.
Investments focus on innovative private power loom MSME enterprises.

Financial Assistance

SIDBI Venture Capital Fund Limited provides financial assistance up to a maximum of 50% of the project cost, capped at Rs 3 crore.

Investment Criteria

Focus on early and growth-stage investments in Small Enterprises as outlined in the MSMED Act, 2006.
Investments are limited to Rs 3 crore per enterprise.
The Fund targets companies in emerging fields within the textile industry and allied products.
Investment areas include textile production machinery, technical textiles, coated textiles, and many more.
Chemical and material-related products also have venture investment potential.
Innovative marketing efforts enhance the competitiveness of Indian textile products.

Investment Details

Equity shares and instruments convertible into equity for Textile Micro and Small Enterprises.
Preference to new products, technology, or innovative business models offering superior value propositions.
Targets innovative MSE companies in the power loom sector.
Includes companies with proven financial performance undergoing expansion.

Key Criteria for Project Selection

The Tex Venture Fund seeks projects with high growth and earnings potential. Key selection criteria include:

Strong and Committed Core Team: SVCL looks for management teams with a strong track record of performance and dedication.

High Scalability and Non-Cyclical Business: Investments prefer sectors that promise sustainable growth and are less affected by economic cycles.

Sustainable Competitive Advantage: Focus is on innovative business models with a long-term competitive edge.

A Clear Exit Plan: Ventures with a well-defined exit strategy within a reasonable period are favored.

Learn more about Alternative Investment Funds.

Documents Required

Applicants must provide the following documents:

Pertaining to Company

MOA and AOA document of Tex Venture Fund
MSME registration documents
KYC/ Due Diligence details including PAN, VAT, TIN, Sales Tax, etc.
Certificates under various regulatory acts and tax returns for the last three years

Pertaining to Promoters

PAN Card, address proof, and income tax returns for the last three years
Net worth statement certified by CA
Promoters' references with contact details

Pertaining to Financial

Audited financial statements and auditor's report
Un-audited financial statements for the most recent date
Detailed financial model with assumptions

Pertaining to Capital Structure

Investment details with Subscription and Shareholding Agreements
Corporate structure block diagram indicating holdings

Company Details

Incorporation details and milestones
Certifications, JV details, and IP information
External credit ratings

Explore more about Tex Venture Fund

Business Model

Industry and business information
Market and industry background, growth, opportunities
Manufacturing process flowchart
Competitive landscape and description of products and services
Sales and marketing strategies, geographical presence, and key customers

Tex Venture Fund Application Procedure

To apply for the Tex Venture Fund, applicants need to submit an application in the prescribed format. Access the application form here. After form submission and verification by SIDBI, fund initiation will take place.

Learn about the Venture Capital Assistance Scheme

Additional Funding Opportunities

Explore various funding options for start-ups and existing businesses by visiting our comprehensive guide on startup funding options. You may also consider options like the North East Venture Fund (NEVF) or the Maharashtra State Social Venture Fund.

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Frequently Asked Questions

Common questions about Tex Venture Fund.

The Tex Venture Fund is an initiative launched by the Ministry of Textiles, Government of India, in association with the Small Industries Development Bank of India (SIDBI). It is a Category-I SME Fund registered with SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012. The principal objective of the fund is to contribute to the development of the power loom and related textile sectors.

The Tex Venture Fund invests in innovative private MSME enterprises, specifically in the power loom and related textile sectors. It focuses on early and growth-stage investments in Small Enterprises, as defined under the MSMED Act, 2006, and its amendments. Each investment is limited to a maximum of Rs 3 crore.

The Tex Venture Fund looks to invest in companies involved in new and emerging fields in the textile industry and allied products and services. This includes areas such as textile production machinery and automation, technical textiles, coated textiles, textiles for defence applications, sportswear, weaving, and garment making. Related products and services like chemicals and materials, as well as innovative marketing, are also eligible for venture investment.

The Tex Venture Fund looks for projects offering potential for attractive growth and earnings. Key criteria include a strong and committed core team, high scalability and non-cyclical business, sustainable competitive advantage, and a clear exit plan. Innovative business models with a sustainable competitive advantage are preferred.

The Tex Venture Fund invests a maximum of 50% of the project cost, with a ceiling of Rs 3 crore per investment.

The required documents include company registration documents, KYC/Due Diligence details, tax returns, audited financial statements, detailed financial models, capital structure details, business model information, manufacturing process flowcharts, competition analysis, product/service descriptions, sales and marketing strategies, and government approvals, among others.

The applicant needs to submit an application form in the prescribed format, providing the required details. The application is then forwarded to SIDBI for verification, after which the fund can be initiated if approved.

The principal objective of the Tex Venture Fund is to contribute to the development of the power loom and related textile sectors in India.

The Tex Venture Fund is managed by SIDBI Venture Capital Fund Limited (SVCL), which invests on behalf of the Ministry of Textiles in the form of equity in MSME enterprises.

Yes, the Tex Venture Fund focuses on investing in companies involved in new and emerging fields in the textile industry and allied products and services. This includes areas such as textile production machinery and automation, technical textiles, coated textiles, textiles for defence applications, sportswear, weaving, garment making, as well as related products and services like chemicals and materials, and innovative marketing.