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 new fund builds on the earlier Fund of Funds for Startups (FFS 1.0), launched in 2016 under the Startup India Action Plan, which aimed to address funding gaps and catalyse domestic capital for startups.
Under the revised scheme, the ₹10,000 crore corpus will be committed to eligible Alternative Investment Funds (AIFs) over the 16th and 17th Finance Commission cycles. Investments are expected to focus on priority segments such as deep tech startups, early growth-stage ventures supported by smaller AIFs, technology-driven and innovative manufacturing startups, as well as sector-agnostic entities.
Startup India FoF 2.0 will follow a structured selection process for AIFs. Screening will be carried out by a Venture Capital Investment Committee (VCIC) comprising experienced members from the startup ecosystem. The scheme also provides for monitoring and oversight mechanisms, including an Empowered Committee (EC) to track implementation and performance.
In addition, provisions for co-investment by the Government and institutional investors have been included under an umbrella framework with governance safeguards. Operational guidelines and the composition of the VCIC will be issued by the Department for Promotion of Industry and Internal Trade (DPIIT).
The Small Industries Development Bank of India (SIDBI) has been designated as the Implementation Agency and will operationalise the scheme from the date of notification. Another domestic implementation agency is also expected to be selected.
The fund will contribute to the corpus of SEBI-registered AIFs, which in turn will invest in entities recognised as startups by the Central Government.
The scheme is positioned as part of a broader push to strengthen India’s innovation-driven growth. By supporting startups developing globally competitive technologies and products, the initiative is expected to enhance manufacturing capabilities, generate employment, and improve economic resilience.
Aligned with the vision of Viksit Bharat @ 2047, the fund signals continued policy support for entrepreneurship and innovation in India’s startup ecosystem.
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