The Indian government has announced a Rs. 10,000 crore Startup India Fund of Funds 2.0. This is big news since it will support deep-tech startups and drive next-generation innovation across India’s growing startup ecosystem. An elite committee chaired by the Secretary, DPIIT will be constituted to monitor implementation and performance of the scheme.
The Rs. 10,000 crore Startup India Fund of Funds (FoF 2.0) will support deep-tech startups, early growth-stage companies, and technology-driven manufacturing ventures.
The initiative builds on the success of the earlier Fund of Funds for Startups (FFS 1.0). It has been operational since 2016. This is managed by the Small Industries Development Bank of India under the Department for Promotion of Industry and Internal Trade.
The newly announced FoF 2.0 retains the same underlying structure but sharpens its focus on future-facing sectors and growth-stage capital needs.
The fund will invest through SEBI-registered AIFs, which will deploy capital into government-recognised startups through equity and equity-linked instruments.
FoF 2.0 prioritizes areas that are critical to India’s long-term economic and technological ambitions. The Rs. 10,000 crore corpus has been structured across four key segments:
Deep-tech startups: It will support innovation in AI, space-tech, semiconductors, and advanced computing.
Micro VCs: The fund will also support eligible early growth-stage startups.
Tech-driven manufacturing: Through this initiative, advanced technological domestic production will also be supported.
Sector-agnostic funds: It provides flexibility to invest across emerging opportunities
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This funding invests in SEBI-registered Alternative Investment Funds (AIFs), which in turn deploy capital into startups.
The government has already supported over 1,370 startups through this model. It promotes private capital participation and expands access to early-stage funding. These initiatives will play an important role in bridging funding gaps and support startups to compete at a global scale.
“Startup India Fund of Funds 2.0 will have an expanded scope with segmented approach to target key segments for real innovation," the notification by Department for Promotion of Industry and Internal Trade (DPIIT) said.