Cabinet approves Startup India Fund of Funds 2.0 with Rs 10,000 crore corpus
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Startup India Fund of Funds 2.0 with a total corpus of Rs 10,000 crore. The move aims to mobilise long-term domestic venture capital and strengthen India’s startup ecosystem.
The new fund seeks to accelerate the next phase of India’s innovation journey. It will support deep tech, tech-driven manufacturing and early-growth stage startups across sectors. In addition, the scheme will help address funding gaps that often hinder promising ventures.
Building on the success of FFS 1.0
The Startup India Fund of Funds 2.0 builds on the performance of the earlier Fund of Funds for Startups (FFS 1.0), launched in 2016. Under FFS 1.0, the government committed Rs 10,000 crore to 145 Alternative Investment Funds (AIFs).
These AIFs invested over Rs 25,500 crore in more than 1,370 startups across sectors such as artificial intelligence, robotics, clean tech, fintech, healthcare, manufacturing, space tech and biotechnology. The initiative helped nurture first-time founders and crowd in private capital.
Since the launch of the Startup India initiative in 2016, India’s startup ecosystem has expanded significantly. The number of startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) has grown from fewer than 500 to over 2 lakh. Notably, 2025 recorded the highest-ever annual startup registrations.
Focus on deep tech and national reach
Startup India Fund of Funds 2.0 will adopt a targeted and segmented funding approach. It will prioritise deep tech and innovative manufacturing ventures that require patient capital. Moreover, it will provide support to early-stage founders to reduce failure rates due to lack of funding.
The scheme also aims to expand investment beyond major metropolitan cities. By encouraging funding in emerging startup hubs, the government seeks to ensure balanced regional growth.
Officials expect the fund to strengthen India’s domestic venture capital base, especially smaller funds. Ultimately, the initiative aligns with the vision of Viksit Bharat @ 2047 and aims to position India as a global innovation leader.
