New Delhi, February 14 (IANS). In a major boost to India’s growing startup ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the setting up of Startup India Fund of Funds 2.0 (Startup India FoF 2.0). A total fund of Rs 10,000 crore has been allocated for this, the purpose of which is to raise venture capital for the startup ecosystem of the country.
The scheme aims to accelerate the next phase of India’s startup journey by mobilizing long-term domestic capital, strengthening the venture capital ecosystem and supporting innovation-led entrepreneurship across the country.
Startup India FOF 2.0, launched under the Startup India initiative, is a culmination of nearly a decade of sustained efforts to make India one of the leading startup nations in the world. Since the launch of Startup India in 2016, India’s startup ecosystem has witnessed a phenomenal transformation, growing from less than 500 startups today to over 2 lakh startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) with the highest ever annual number of startup registrations in 2025.
Startup India FoF 2.0 is building on the successful performance of the Fund of Funds for Startups (FFS 1.0), the Cabinet said in its statement. FFS 1.0 was launched in 2016 to address the funding gap for startups and accelerate the domestic venture capital market.
Under FFS 1.0, the entire amount of Rs 10,000 crore was allocated to 145 Alternative Investment Funds (AIFs). These backed AIFs have invested over Rs 25,500 crore in over 1,370 startups across the country in sectors such as agriculture, artificial intelligence, robotics, automotive, clean tech, consumer goods and services, e-commerce, education, fintech, food and beverages, healthcare, manufacturing, space technology and biotechnology.
Startup India Fund of Funds 2.0 is expected to play a key role in driving India’s innovation-led growth agenda. By supporting startups building globally competitive technologies, products and solutions, the Fund will contribute to enhancing India’s economic strength, boosting manufacturing capabilities, creating high-quality jobs and establishing India as a global innovation hub.
According to the Cabinet, in line with the national vision of Develop India 2047, the fund reflects the government’s continued commitment to empower entrepreneurs, foster innovation and unleash the full potential of India’s startup ecosystem.
–IANS
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