The Union Cabinet, chaired by Indian Prime Minister Narendra Modi, has approved the Startup India Fund of Funds 2.0 with a corpus of ₹10,000 crore to mobilise venture capital for the country’s startup ecosystem.
The new fund builds on nearly a decade of the Startup India initiative, under which India’s recognised startup base has expanded to more than two lakh DPIIT-recognised startups.
This follows the earlier Fund of Funds for Startups (FFS 1.0), launched in 2016 to address funding gaps and catalyse domestic VC participation.
Under FFS 1.0, the full ₹10,000 crore corpus was committed to 145 alternative investment funds, which together invested over ₹25,500 crore into more than 1,370 startups across sectors including agriculture, artificial intelligence, robotics, automotive, cleantech, fintech, healthcare, manufacturing and spacetech.
Startup India FoF 2.0 will adopt a segmented funding approach, with a strong push towards deeptech and tech-driven innovative manufacturing ventures that typically require patient, long-term capital. The scheme will also aim to support early-growth stage founders to reduce failure rates caused by funding constraints.
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