Startup India Fund of Funds 2.0 (FoF 2.0)

The Union Cabinet has approved the establishment of the Startup India Fund of Funds 2.0 (FoF 2.0) with a corpus of ₹10,000 crore to mobilise venture capital for India’s growing startup ecosystem.

The scheme, launched by the Ministry of Commerce and Industry under the Startup India initiative, aims to strengthen funding support for innovation-driven enterprises.

Building on Startup India’s Growth

Since the launch of Startup India in 2016, India’s startup ecosystem has expanded from fewer than 500 startups to more than 2 lakh recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), with 2025 recording the highest-ever annual registrations.

FoF 2.0 follows the success of the Fund of Funds for Startups (FFS 1.0), introduced in 2016 to bridge funding gaps and catalyse domestic venture capital investments. Under FFS 1.0, the entire ₹10,000 crore corpus was committed to 145 Alternative Investment Funds (AIFs).

Focus Areas of FoF 2.0

Startup India FoF 2.0 will adopt a targeted funding approach, prioritising:

• Deep-tech startups
• Technology-driven innovative manufacturing ventures
• Early-growth stage startups needing patient capital

The scheme also aims to reduce startup failures due to limited early-stage funding and encourage innovation beyond major metropolitan centres.

Boost to Self-Reliance and Venture Capital Ecosystem

The fund seeks to address high-risk capital gaps in priority sectors critical to self-reliance and economic growth. It will also strengthen India’s domestic venture capital ecosystem, especially smaller funds that often struggle to raise capital.