Govt notifies Rs 10,000 crore Startup India Fund of Funds 2.0
14 Apr 2026, 11:03 AMThis comes after the the Union Cabinet had approved the Startup India Fund of Funds 2.0 earlier in February.
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The Indian government has notified a Rs 10,000 crore Startup India Fund of Funds 2.0 to mobilise venture and growth capital for startups, with a focus on deep technology, early growth-stage firms and innovative manufacturing, an official statement said.
This comes after the the Union Cabinet had approved the Startup India Fund of Funds 2.0 earlier in February.
The new fund builds on the earlier Fund of Funds for Startups launched in 2016, which aimed to address funding gaps and catalyse domestic capital in the startup ecosystem.
The fund will prioritise sectors such as deep tech, technology-driven manufacturing and early-stage companies backed by smaller AIFs, while retaining flexibility to invest across sectors and stages.
"Startup India FoF 2.0 is expected to play a critical role in advancing India’s innovation-led growth agenda, and by supporting startups that build globally competitive technologies, products, and solutions," it noted.
The statement added that Startup India FoF 2.0 will follow a structured route to back AIFs (Alternative Investment Funds), with a Venture Capital Investment Committee of seasoned ecosystem players doing the screening. There’s also a separate empowered committee to keep a check on how the scheme is being implemented and how it performs. The framework allows the government to co-invest alongside institutional capital.
The Department for Promotion of Industry and Internal Trade (DPIIT) will issue detailed operational guidelines and finalise the investment committee’s composition.
The Small Industries Development Bank of India (SIDBI), like in the first fund of funds, will act as the implementation agency and begin operationalising the scheme immediately, the statement said, adding that another domestic agency will also be selected.
Indian venture capital firms that have raised capital from the government's debut fund of funds include Chiratae Ventures, Blume Ventures, Fireside Ventures, India Quotient and Arali Ventures.
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