Telangana Launches Rs 12.66 Cr Fund for Women-Led Enterprises

By: WE Staff | Tuesday, 3 March 2026

• Society for Elimination of Rural Poverty has introduced a ₹12.66 crore Challenge Fund in Telangana
• The fund is to support and scale up women-run businesses from self-help groups

The Society for Elimination of Rural Poverty has launched a Challenge Fund of ₹12.66 crores for the development of women-owned businesses based on Self-Help Groups across the state of Telangana.

The Programme is being implemented in association with T-Hub, WE Hub, and BITS Pilani Hyderabad. The Challenge Fund is supported by the Ministry of Rural Development and is being implemented by the National Rural Livelihoods Mission incubator model.

The Challenge Fund aims to enable the development of over 300 women- and youth-owned businesses across the state of Telangana through mentorship, technology, and market linkages. The Programme aims to assist the women of Self-Help Groups to transition from microfinance to entrepreneurship.

The application process for the Programme is set to begin on 8th March 2026, coinciding with International Women's Day. The Programme is being rolled out across all 33 districts of the state of Telangana through the district- and block-level implementation model of SERP.

Telangana has over 65 lakh women who are part of approximately 4.35 lakh self-help groups. This fund aims to leverage this number by supporting the business formalisation process for businesses operating in the manufacturing, food processing, agri-allied, services, handicraft, and new industries sectors.

These selected businesses will be able to receive diagnostics, business growth plans, sector-specific mentoring, digital enablement, branding, market linkages, and preparation for external investment. According to the officials, the aim is to develop growth-oriented businesses that can gain access to formal credit and markets.

Divya Devarajan, the Chief Executive Officer of SERP Telangana, stated that the fund marks a shift towards the development of enterprises. She also stated that the aim is to develop inclusive growth through the strengthening of rural entrepreneurship.

The state has also integrated the Challenge Fund into its overall vision for inclusive economic development, which is consistent with the national vision for the long-term goals set out in the vision for Viksit Bharat 2047.