Govt mulls allowing pension funds to invest in startups

The Indian government is considering allowing pension funds to invest in new tech businesses.

The secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Mr Guruprasad Mohapatra told Indo-Asian News Service that the government is planning to initiate inter-ministerial discussions to understand the scope of using pension and insurance funds to invest in startups.

Mr Mohapatra said that utilising insurance and pension funds to invest in startups seems like an “attractive opportunity” as the funds have huge capital.

He added that pension funds from overseas have started investing in India. An example is Canada Pension Plan Investment Boards, which has made investments in ventures like logistics startup Delhivery, EdTech startup Byju’s and gaming platform Dream11.

Source: Asia Insurance Review