New Delhi: Startup India Fund of Funds 2.0 has been approved by the Union Cabinet chaired by Prime Minister Narendra Modi, with a total corpus of ₹10,000 crore to mobilize venture capital for India’s startup ecosystem.
The initiative aims to strengthen domestic capital flows, support innovation-led entrepreneurship, and accelerate the next phase of India’s startup growth.
Startup India Fund of Funds 2.0 to Strengthen Venture Capital Ecosystem
The Startup India Fund of Funds 2.0 scheme is designed to mobilise long-term domestic capital, strengthen the venture capital ecosystem, and support innovation-driven entrepreneurship across the country.
Launched under the Startup India initiative, the new fund builds on nearly a decade of efforts to position India as one of the world’s leading startup ecosystems.
Since the launch of Startup India in 2016, the country’s startup ecosystem has grown from fewer than 500 startups to more than 2 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), with 2025 recording the highest-ever annual startup registrations.
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Building on Fund of Funds for Startups 1.0
Startup India FoF 2.0 follows the performance of the Fund of Funds for Startups (FFS 1.0), launched in 2016 to address funding gaps and catalyse domestic venture capital investments.
Under FFS 1.0:
The entire corpus of ₹10,000 crore was committed to 145 Alternative Investment Funds (AIFs).
These AIFs invested over ₹25,500 crore in more than 1,370 startups across sectors including:
- Agriculture
- Artificial Intelligence
- Robotics
- Automotive
- Clean Tech
- Consumer Goods and Services
- E-Commerce
- Education
- Fintech
- Food and Beverages
- Healthcare
- Manufacturing
- Space-Tech
- Biotechnology
FFS 1.0 played a key role in nurturing first-time founders, crowding in private capital, and building a strong foundation for India’s venture capital ecosystem.
Key Features of Startup India Fund of Funds 2.0
Startup India FoF 2.0 introduces a targeted and segmented funding approach to support innovation and entrepreneurship across sectors and regions.
- Deep Tech and Tech-Driven Manufacturing
- Focus on high-technology innovation requiring patient, long-term capital.
- Support for Early-Growth Startups
- Funding support for founders and innovative ideas to reduce early-stage funding gaps.
- National Investment Reach
- Encouraging investments beyond major metropolitan cities.
- Addressing High-Risk Capital Gaps
- Directing capital toward priority sectors aligned with self-reliance and economic growth.
- Strengthening Domestic Venture Capital
- Supporting smaller funds to boost India’s domestic investment ecosystem.
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Startup India Fund of Funds 2.0 is expected to play an important role in advancing India’s innovation-led growth agenda by supporting globally competitive technologies, products, and solutions.
The initiative is aimed at strengthening 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 reflects the Government’s continued commitment to empowering entrepreneurs, fostering innovation, and unlocking the full potential of India’s startup ecosystem.
