Startup India Fund of Funds 2.0 Approved with
₹10,000 Crore Corpus
Ø Rs. 10,000 crore corpus to support deep tech,
tech-driven innovative manufacturing startups, and early-growth stage startups
1.
Cabinet Approval
·
The Union Cabinet, chaired by Narendra Modi,
has approved Startup India FoF 2.0.
·
Total corpus: ₹10,000 crore.
·
Objective: Mobilise long-term domestic venture
capital for India’s startup ecosystem.
2.
Purpose and Vision
·
Accelerate the next phase of India’s startup
growth.
·
Strengthen the domestic venture capital ecosystem.
·
Support innovation-driven entrepreneurship across
sectors and regions.
·
Aligns with the vision of innovation-led economic
growth and Viksit Bharat @ 2047.
3.
Background: Growth Under Startup India
·
Launched in 2016.
·
Startups increased from fewer than 500 to over 2
lakh DPIIT-recognised startups.
·
2025 recorded the highest-ever annual startup
registrations.
4.
Building on Fund of Funds for Startups (FFS 1.0)
·
Launched in 2016 to address funding gaps.
·
₹10,000 crore corpus fully committed to 145
Alternative Investment Funds (AIFs).
·
AIFs invested over ₹25,500 crore in
1,370+ startups.
·
Covered sectors: agriculture, AI, robotics,
automotive, clean tech, fintech, biotech, space tech, healthcare,
manufacturing, e-commerce, education, food & beverages, etc.
·
Helped nurture first-time founders and crowd in
private capital.
5. Key
Features of Startup India FoF 2.0
a. Deep
Tech & Advanced Manufacturing Focus
·
Supports high-tech, innovation-led sectors
requiring long-term capital.
b.
Early-Growth Stage Support
·
Provides funding support to reduce early-stage
startup failures.
c.
National Outreach
·
Encourages investment beyond metro cities for
inclusive innovation.
d.
Address High-Risk Capital Gaps
·
Directs funds to priority sectors vital for
self-reliance and economic growth.
e.
Strengthening Domestic VC Base
·
Supports smaller domestic venture capital funds to
deepen the investment ecosystem.
6.
Expected Impact
·
Boost innovation and globally competitive
technologies.
·
Strengthen manufacturing capabilities.
·
Generate high-quality employment.
·
Enhance economic resilience.
·
Position India as a global innovation hub.
Overall
Significance
Startup India FoF 2.0
marks a strategic step in deepening India’s venture capital ecosystem,
accelerating innovation-led growth, and empowering entrepreneurs across the
country.
In a major boost to India’s growing
startup ecosystem, the Union Cabinet chaired by the Prime Minister, Narendra
Modi, has approved the establishment of the Startup India Fund of Funds 2.0
(Startup India FoF 2.0) with a total corpus of Rs.
10,000 crore for the purpose of mobilizing venture
capital for the startup ecosystem of the country.
The Scheme is designed to accelerate
the next phase of India’s startup journey by mobilising long-term domestic
capital, strengthening the venture capital ecosystem, and supporting
innovation-led entrepreneurship across the country.
Launched under the Startup India
initiative, Startup India FoF 2.0 builds on nearly a
decade of sustained efforts to make India one of the world’s leading startup
nations. Since the launch of Startup India in 2016, India’s startup ecosystem
has witnessed an extraordinary transformation growing from fewer than 500 startups
to over 2 lakh Department for Promotion of Industry and Internal Trade
(DPIIT)-recognised startups today, with 2025 marking the highest ever annual
startup registrations.
Building on Fund of Funds for Startups
1.0
The Startup India FoF
2.0 follows the strong performance of the Fund of Funds for Startups (FFS 1.0),
which was launched in 2016 to address funding gaps and catalyse the domestic
venture capital market for startups.
Under FFS 1.0, the entire corpus of Rs.
10,000 crore has been committed to 145 Alternative
Investment Funds (AIFs). Such supported AIFs have invested over Rs. 25,500 crore in more than 1,370 startups across the country in
sectors such as agriculture, artificial intelligence, robotics, automotive,
clean tech, consumer goods & services, e-commerce, education, fintech, food
& beverages, healthcare, manufacturing, space tech, and biotechnology
amongst others.
FFS 1.0 played a pivotal role in
nurturing first-time founders, crowding in private capital, and helping build a
strong foundation for India’s venture capital ecosystem.
Key Features of the Scheme:
While the first phase built the
ecosystem, Startup India FoF 2.0 is designed to take
Indian innovation to the next level. The new fund will have a targeted,
segmented funding approach to support:
a. Deep tech and tech-driven innovative
manufacturing: Prioritizing breakthroughs in high-tech areas that require
patient, long-term capital.
b. Empowering early-growth stage
founders: Providing a safety net for new and innovative ideas, reducing
early-stage failures caused by lack of funding.
c. National reach: Encouraging
investment beyond major metros so that, the innovation thrives in every corner
of the country.
d. Designed to address high‑risk
capital gaps: Directing greater capital to priority areas which are important
for self-reliance and boosting economic growth.
e. Strengthen India’s domestic venture
capital base, particularly smaller funds to further boost the domestic
investment landscape.
Startup India FoF
2.0 is expected to play a pivotal role in shaping India’s economic trajectory,
leading to transformational impact.
Startup India Fund of Funds 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 Fund will contribute to strengthening India’s
economic resilience, boosting manufacturing capabilities, generating
high-quality jobs, and positioning India as a global innovation hub.
Aligned with the national vision of
Viksit Bharat @ 2047, the Fund represents the Government’s continued commitment
to empowering entrepreneurs, fostering innovation, and unlocking the full
potential of India’s startup ecosystem.