New Delhi, Apr 13 (TNT): The Union Government has notified the Startup India Fund of Funds 2.0 (FoF 2.0) with a corpus of ₹10,000 crore to mobilise venture and growth capital for the country’s startup ecosystem.
The scheme builds on the earlier Fund of Funds for Startups (FFS 1.0), launched in 2016 under the Startup India initiative to address funding gaps and catalyse domestic capital.
The FoF 2.0 will deploy funds through SEBI-registered Alternative Investment Funds (AIFs), with investments focused on priority areas such as deep-tech startups, early-stage ventures, technology-driven manufacturing and other innovative sectors.
The fund will be implemented across the 16th and 17th Finance Commission cycles and will follow a structured selection process, with proposals evaluated by a Venture Capital Investment Committee (VCIC) comprising industry experts.
An Empowered Committee will oversee implementation and performance.
The Department for Promotion of Industry and Internal Trade will issue operational guidelines, while Small Industries Development Bank of India will act as the primary implementation agency.
Another domestic agency will also be appointed.
The scheme also provides for co-investment by the government and institutional investors under a structured framework with governance safeguards.
Officials said the initiative is expected to strengthen India’s innovation ecosystem, boost manufacturing, generate high-quality jobs and position the country as a global startup hub, in line with the vision of ‘Viksit Bharat 2047’.
TNT KS
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