Startup India FoF 2.0 Launched
The Department for Promotion of Industry and Internal Trade (DPIIT) has officially launched the Startup India Fund of Funds (FoF) 2.0, with a total corpus of ₹10,000 Cr, effective from April 13, 2026. The disbursals to alternative investment funds (AIFs) will be spread over the 16th and 17th finance commission cycles.
Details
The scope of Startup India FoF has been expanded to include AIFs supporting deeptech startups, micro VCs backing early-stage startups, AIFs supporting tech-driven manufacturing startups, and AIFs supporting sector and stage agnostic startups. The SIDBI will act as the implementing agency for the scheme, with the DPIIT planning to select another implementation agency.
Company Background
The Startup India FoF 1.0 was launched in 2016 with an initial corpus of ₹10,000 Cr, aiming to catalyze private investment into Indian startups. The supported AIFs have invested ₹25,548 Cr in 1,371 startups across 29 states and union territories, generating over 2 Lakh jobs.
Market Context
This move signifies a significant step towards fostering innovation and job creation in India. The funding will channel capital to startups working on novel solutions in deeptech, early-stage ventures, and tech-driven manufacturing, emphasizing the government’s commitment to bolstering the startup ecosystem.
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Source: Inc42