UAE investors to back Next Orbit fund
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New Delhi: Private equity fund Next Orbit Ventures said it has received interest from investors in the United Arab Emirates (UAE) to invest in its $750 million fund focused on the electronic system design and manufacturing (ESDM) sector.
UAE International Investors’ Council, which includes 18 UAE entities such as Mubadala Development Co. , DP World, Etisalat, Emma, has shown keen interest to invest in the fund, the council said in a statement on Tuesday.
Mumbai-based Next Orbit is raising its second $750 million fund, launched in November, from investors in India and abroad.
While 49% (about $360 million) of the fund is expected to come from the Indian government, the rest will be raised from investors in India and abroad.
The fund will invest in digital, analog and solar fabrication (FABS) projects along with semiconductor design, electronics, light-emitting diodes (LED) and solar products to feed those FABS.
Next Orbit Ventures II has been selected as the “Daughter Fund” under Government of India’s Electronics Development scheme.
“This investment spree in India follows the ‘Digital India’ and ‘Make in India’ programmes of the government of India which are providing economic, skill development and tax incentives to electronics manufacturing,” said Ajay Jalan, founder and managing partner at Next Orbit Ventures.
“The project will provide more than 28 million jobs in the country and will be a second source of quality supply of electronic, LED and solar products which is currently dominated by cheap Chinese products,” Jalan added.