Subsidiary Network

Micro Units Development & Refinance Agency Ltd. (MUDRA) was set up on April 08, 2015 as a wholly owned subsidiary of SIDBI for “funding the unfunded” micro enterprises in the country. MUDRA has been supporting Banks, Micro-finance Institutions (MFIs), NBFCs and other lending institutions through refinance assistance for lending to micro/ small business entities engaged in manufacturing, trading, service sector activities, activities allied to agriculture and other eligible income- generating activities.

MUDRA also manages the PMMY portal where the lending institutions upload their operational data relating to implementation of the Pradhan Mantri Mudra Yojana(PMMY). The progress of implementation of PMMY is reviewed periodically by MUDRA Ltd. and Department of Financial Services, Ministry of Finance, Govt. of India at all India level and State Level Bankers Committees at the state level.

MUDRA, currently with an authorised capital of ₹5,000 crore and a paid up capital of ₹1,675.93 crore, works closely with Banks, MFIs and other lending institutions at the state/ regional level to provide micro finance support to the growing micro enterprise sector in the country.

SIDBI Venture Capital Limited (SVCL), a wholly owned subsidiary of SIDBI, was set up in July 1999 as an Investment Management Company for managing Venture Capital Funds (VCFs). Since inception, SVCL has continued to provide growth capital to deserving MSMEs across diversified sectors The funds managed by SVCL have been instrumental in generating a valuable growth momentum among key sectors of the economy.

Impact of SVCL:

SVCL managed funds have assisted MSMEs in various sectors like manufacturing, technology, services, etc.

SVCL has led the path by being the first investor in most of its investee companies or a sector, making way for other funds to follow and assist development of a successful investee. Marquee Investors/ Funds have invested in SVCL investee companies in subsequent rounds.

Most of SVCL funds have significant focus on manufacturing businesses which are generally starved for equity capital.

Several companies in which SVCL’s Funds have been invested have grown to respectable sizes.

Samridhi fund was the first social impact fund under the new AIF guidelines. It has assisted companies in diverse sectors like financial inclusion, healthcare, drinking water, organic food, agri processing and clean energy etc.

Through Samridhi Fund, SVCL has invested in 5 MFIs. Two of them have transformed into Small Finance Banks (SFB). The MFIs and the SFBs have helped financial inclusion, especially of rural poor women in multiple geographical locations.

With a track record of over 130 investments and over 100 exits so far, SVCL has made remarkable contributions towards the growth of traditional sectors like manufacturing and textiles while also pioneering the wave of new technology enabled start-ups, social enterprises, women entrepreneurs and innovative products and services enterprises across healthcare, logistics, education, water etc.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) set up by SIDBI and Ministry of MSME, Government of India (GoI) in July 2000, operates the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) in respect of credit facilities extended by its Member Lending Institutions, which are not backed by collateral security and third-party guarantee. The guarantee ceiling is ₹10 crore per borrower.

Cumulative number of guarantees of 1.15 crore worth ₹9.35 lakh crore has been approved till March 31, 2025. The amount of Guarantees approved during FY 2025 is ₹3,05,507 crore recording a significant growth of 51%. The share of women entrepreneurs and SC/ST entrepreneurs in the total approved guarantee during FY 2025 is 23% and 8% respectively. The MSEs supported under CGS of CGTMSE have generated employment to the tune of 3.03 crore and have contributed ₹28,066 crore towards exports.

CGTMSE has leveraged technology to improve operational efficiencies.

Important developments during FY 2025:

1. CGTMSE has completed 25 years of its establishment in July 2025, marking a significant milestone in its journey of facilitating access to credit for the MSE sector through its Credit Guarantee Scheme.
2. New guarantee fee structure has been introduced with significant reduction in the fee from peak rate of 2% pa to 0.37% pa with effect from April 01, 2023
3. Enhancement in extent of guarantee coverage for Women-led Enterprises from 85% to 90%
4. Extending Special Benefits to MSEs promoted by Transgender for concession of 10% in the standard rate of annual guarantee fee and higher extent of guarantee coverage of 85%.
5. During FY 2025, MoU was signed with the State Government of Gujarat and Mizoram to provide enhanced guarantee coverage for MSEs situated in the respective States. As on March 31, 2025, MoU has been signed with nine State Governments viz. State Government of Tamil Nadu, Assam, Manipur, Meghalaya, West Bengal, Goa, Odisha, Gujarat and Mizoram.

Receivables Exchange of India Limited (RXIL) is India’s first and leading Trade Receivables Discounting System (TReDS) platform, licensed by the Reserve Bank of India in December 2016. Established as a joint venture between Small Industries Development Bank of India (SIDBI) and National Stock Exchange of India Ltd.(NSE), along with State Bank of India, ICICI Bank, and Yes Bank, RXIL has transformed MSME receivables financing by providing seamless, digital access to working capital.

TReDS stands as an integrated financing platform and a digital marketplace meticulously crafted to empower Micro, Small, and Medium Enterprises (MSMEs) in realizing their trade receivables due from various buyers, through the financiers predicated on their Buyer’s risk.

IMPACT OF RXIL

• RXIL offers a win-win proposition to all stakeholders– MSMEs sellers, corporate buyers (including PSUs and Government departments) and financiers. With a fully digital, paperless process, RXIL TReDS platform offers a transparent and efficient Invoice discounting mechanism, facility prompt and timely payments for MSMEs receivables.
• The Government of India has prioritised deepening digital payments and strengthening the MSME sector by enabling easier market access and timely realisation of receivables. The TReDS framework, including RXIL’s platform, has been a key initiative toward ensuring time-bound receivable realization for MSMEs at a relatively lower financing cost.
• Since its inception, RXIL TReDS has onboarded over 50,000 MSMEs and facilitated timely payments worth more than ₹228,000 crores (as on Sept 30, 2025). As a fully digital platform, RXILs operations have remained seamless and resilient. Access to low-cost finance has helped MSMEs reduce their receivables cycle by 23% (as per TReDS Impact Study conducted by Professors from IIM Bangalore and Ahmedabad University) and reduces borrowing costs. Notably, RXIL is the only TReDS platform to have onboarded State Governments, enabling MSME vendors to access financing against their receivables from state entities.
• It is RXIL’s vision to extend the TReDS benefit and to support the growth and development of 65,000 and more MSMEs across India by FY 2026.
• RXIL remains committed to contributing to the Government of India’s vision of fostering a vibrant MSME ecosystem and advancing the national mission of AtmaNirbhar Bharat (Self Reliant India)

Acuité Ratings & Research Limited (www.acuite.in)is a technology-enabled, full-service credit rating agency registered with the Securities and Exchange Board of India (SEBI) and accredited by Reserve Bank of India (RBI). The Company received RBI Accreditation as an External Credit Assessment Institution (ECAI), for Bank Loan Ratings under BASEL-II norms in the year 2012. Since then, it has assigned more than 10,300+ credit ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide section of industries. Acuité rates bonds, debentures, commercial paper, fixed deposits and various fund-based and non-fund-based bank facilities. Apart from credit ratings, Acuité’s expertise includes economic research, industry research, financial modelling, rating modelling, and development of software applications.

SMERA Ratings Private Limited is a wholly owned subsidiary of Acuité Ratings & Research Ltd. SMERA (www.smeraonline.com) is world's first SME-focused rating agency providing credit ratings of Indian micro and small enterprises. SMERA's services are aimed at empowering the SME ecosystem by promoting transparency, building trust and facilitating lending decisions. SMERA, which morphed from an initiative of the Ministry of Finance and RBI back in 2005, has built an enviable record of conducting more than 60,000 ratings till date.

International Finance Corporation (IFC) recognized SMERA as a novel and sustainable initiative of the Government of India, to improve the credit flow to the MSME sector. In 2007, the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) awarded SIDBI with "Outstanding Development Project Award" under the SME Development Category, for setting up SMERA. This award was a recognition of the Indian initiative to enhance credit flow to credit-constrained SME sector for developing its SME sector. SMERA was also a recipient of the Technical Assistance Grant by DFID, UK under World Bank’s ‘Project on SME Financing & Development’.

ESG Risk Assessments & Insights Ltd. (ESGRisk.ai), another wholly owned subsidiary of Acuité Ratings & Research Ltd., is an ESG Rating Provider registered with SEBI since April 29, 2024 under the SEBI (Credit Rating Agencies) (Amendment) Regulations, 2023. ESGRisk.ai is a pioneer in bringing ESG assessments to investors and corporates. Currently, ESG assessment reports and ratings of over 300 listed Indian companies can be accessed via “ESG 360 Degree” subscription platform of ESGrisk.ai. ESGRisk.ai’s ratings are an objective, independent and unbiased opinion on a company’s ability to mitigate emerging risks associated with Environment, Social, and Governance issues that have a material financial impact.

India SME Technology Services Limited (ISTSL) was set up in November 2005 by SIDBI along with Indian Bank, Oriental Bank of Commerce, Indian Overseas Bank and State Bank of India with the primary objective to strengthen and accelerate the process of technological modernization in the MSME sector.

Through key partnerships with national and international organisations engaged in similar activities, ISTSL offers expert technology advisory and consultancy services to MSMEs so as to enable them to make the best of the latest technological developments and remain relevant in the fast changing market place. It also plays a crucial role in providing a platform for MSMEs to tap opportunities at the domestic and global level for acquisition of modern technologies.

Key technical development services offered by ISTSL include sharing of information on technology options, match-making, finance syndication and business collaborations, organising seminars/meets and providing market support. Another key contribution of ISTSL is its strong focus on promotion of energy efficient, and environment friendly technologies in the MSME sector, with considerable efforts being made to facilitate reduction in Green House Gases in the MSME sector.

ISTSL is also providing project management consultancy services for implementation of renewable energy (especially solar rooftop PV system projects).

ISTSL is one among the very few agencies selected for conduction of Zero Defect – Zero Effect (ZED) Scheme Awareness Workshops among MSMEs. ISTSL is also empanelled as a technical inspection agency with “The National Small Industries Corporation Limited” under single point registration scheme.