The Government has notified the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of ₹10,000 crore to mobilise venture and growth capital for the country’s startup ecosystem.
The Startup India FoF 2.0 builds upon the strong performance of the earlier Fund of Funds for Startups (FFS 1.0), launched in 2016 under the Startup India Action Plan to address funding gaps and catalyse domestic capital for startups, the Ministry of Commerce and Industry said on Monday.
The new fund will deploy its ₹10,000 crore corpus through commitments to eligible Alternative Investment Funds (AIFs) across the 16th and 17th Finance Commission cycles.
Investments under Startup India FoF 2.0 will focus on AIFs supporting priority segments, including deep-tech startups, early growth-stage ventures backed by smaller AIFs, technology-driven and innovative manufacturing startups, as well as sector- and stage-agnostic startups.
The scheme will follow a structured selection process for AIFs, including screening by a Venture Capital Investment Committee (VCIC) comprising veterans from the startup ecosystem.
It incorporates robust monitoring and oversight mechanisms, with an Empowered Committee (EC) to monitor implementation and performance. Provisions for co-investment by the Government and institutional investors under an umbrella framework have also been included, with appropriate governance safeguards.
Operational guidelines and the composition of the VCIC will be issued by the Department for Promotion of Industry and Internal Trade (DPIIT).
Startup India FoF 2.0 is expected to play a critical role in advancing India’s innovation-led growth agenda. By supporting startups that build globally competitive technologies, products, and solutions, the scheme will strengthen economic resilience, boost manufacturing capabilities, generate high-quality jobs, and position India as a global innovation hub.
The Small Industries Development Bank of India (SIDBI) will operationalise the scheme as the Implementation Agency (IA) from the date of notification. Additionally, another domestic Implementation Agency will be selected to support implementation.
The fund will contribute to the corpus of SEBI-registered AIFs for investment in entities recognised as ‘startups’ by the Central Government.
Aligned with the national vision of Viksit Bharat @ 2047, the initiative reflects the Government’s continued commitment to empowering entrepreneurs, fostering innovation, and unlocking the full potential of India’s startup ecosystem.