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Government notifies Startup India Fund of Funds 2.0

  • 14 Apr 2026
  • 129 Views

The Startup India Fund of Funds 2.0 (Startup India FoF 2.0), with a total corpus of Rs. 10,000 corpus, has been notified by the Government of India. This corpus is meant for mobilizing venture and growth capital for the country’s startup ecosystem. 

The Startup India FoF 2.0 is based on the success of the Fund of Funds for Startups (FFS 1.0), which was launched in 2016 as part of the Startup India Action Plan to deal with funding gaps and catalyze domestic capital for startups.

How will Startup India FoF 2.0 Corpus be Used?

The total corpus in Startup India FoF 2.0, i.e., Rs. 10,000 crore, will support the eligible Alternative Investment Funds (AIFs) over the 16th and 17th Finance Commission cycles. 

Investments under Startup India FoF 2.0 will focus on Alternative Investment 

Funds that support priority areas like deep tech startups, early-stage growth startups backed by smaller AIFs, tech-driven and innovative manufacturing startups and sector or stage agnostic startups.

Structured Selection Process for AIFs

Startup India FoF 2.0 will stick to a structured selection procedure for AIFs that involves screening by a Venture Capital Investment Committee (VCIC). The Scheme incorporates robust monitoring and oversight mechanisms. An Empowered Committee (EC) will also be formed to track the Scheme’s implementation and performance. 

Provisions for co-investment by Government as well as institutional investors under an umbrella framework have been included with appropriate governance safeguards. The Department for Promotion of Industry and Internal Trade (DPIIT) will release the operational guidelines and composition of VCIC. 

Expectations from Startup India FoF 2.0

It is anticipated that the Startup India FoF 2.0 will play a major role in advancing India’s innovation-led growth agenda. By supporting startups that build globally competitive technologies, products and solutions, the Scheme will make a contribution to strengthening India’s economic resilience, boosting manufacturing capabilities, creating high-quality jobs and placing India’s position as a global innovation hub.

Implementation Agency for Startup India FoF 2.0

The Small Industries Development Bank of India (SIDBI) will commence operationalization of the scheme as the Implementation Agency (IA) with effect from the date of notification. In addition, another domestic Implementation Agency will also be selected for the proposed scheme’s implementation.

Contribution to Corpus of AIFs & Alignment with Viksit Bharat @ 2047 

The Startup India FoF 2.0 will contribute to the corpus of SEBI-registered AIFs for investing in businesses that the Central Government recognizes as "startups." The Fund is in line with the national vision of Viksit Bharat @ 2047. 

It shows that the Government continues to remain committed to giving entrepreneurs more power, encouraging new ideas and making the most of India's startup ecosystem.

 

To check the official notification, click on the following link:- https://egazette.gov.in/WriteReadData/2026/271764.pdf

 

Source:- Press Information Bureau (PIB)

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