The Maharashtra Defence and Aerospace Venture Fund serves as a catalyst for innovation, indigenization, and self-reliance in the defence and aerospace sectors

Mumbai, January 29, 2025: The Maharashtra Defence and Aerospace Venture Fund (MDAVF), a SEBI-registered Category II Alternative Investment Fund (AIF) managed by IDBI Capital Markets & Securities Limited (ICMS), has emerged as a pivotal driver of India’s defence, aerospace, and allied sectors. Since its inception, MDAVF has committed an impressive ₹480 crore across 27 MSMEs, focusing on critical areas such as missile systems, aerospace technologies, naval systems, and electronic warfare.

To date, MDAVF has invested approximately ₹406 crore in 22 MSMEs. The fund has successfully executed full and partial exits from 12 companies, realizing divestment proceeds of around ₹281 crore and achieving a strong Internal Rate of Return that highlights the fund’s disciplined and strategic approach to value creation.

Mr. Amey Belorkar, Fund Manager – Maharashtra Defence and Aerospace Venture Fund (MDAVF), IDBI Capital Markets & Securities Ltd., stated, “MDAVF is committed to supporting India’s vision of self-reliance in defence and aerospace by channelizing strategic investments into high-potential ventures. We are dedicated to fostering technological breakthroughs that not only strengthen national security but also enhance indigenous capabilities. By backing innovative and sustainable growth in critical sectors, MDAVF is proud to contribute to India’s defence ecosystem and the vision of Atmanirbhar Bharat.”

MDAVF’s investments have led to the creation of over 3,000 direct jobs and an estimated 10,000-15,000 indirect jobs across Maharashtra. By nurturing a robust ecosystem for defence and aerospace within the state, the fund has catalysed skill development, indigenization, and technological advancement in critical defence manufacturing sectors. Notably, 13 of the 27 MDAVF-backed companies are led by women promoters and entrepreneurs, actively driving innovation and growth in the defence and aerospace industry. This highlights MDAVF’s unwavering commitment to diversity, inclusivity, and empowering women within India’s defence ecosystem.

The fund’s investments align seamlessly with the government’s visionary ‘Make in India’ initiative, prioritizing the development of indigenous capabilities in defence production. Sectors such as nuclear solutions, UAV automation, marine technologies, and aerospace advancements have witnessed remarkable progress, positioning India as a global leader in cutting-edge defence manufacturing. MDAVF is poised to leverage emerging opportunities in advanced technologies and manufacturing, providing a resilient platform for sustainable growth, innovation, and self-reliance.

Managed by IDBI Capital Markets & Securities Limited, MDAVF continues to play a transformative role in driving indigenous innovation, fostering self-reliance, and enhancing India’s global competitiveness in the defence and aerospace sectors.