Government approves Startup India Fund of Funds 2.0 with Rs 10,000 cr corpus

New Delhi: The Union cabinet on Friday gave its approval to the second tranche of the Startup India Fund of Funds Scheme (FFS) with a corpus of ₹ 10,000 crore. The FFS 2.0 for startups, unveiled in the budget for 2025-26, focuses on the manufacturing and high-technology sectors, which require longer-term funding.

"To power India's innovation ecosystem, especially in deep tech, early-stage ideas, advanced manufacturing and breakthrough technologies, the PM has approved the Startup India FFS 2.0 with a corpus of ₹10,000 crore," the Prime Minister's Office said in a statement.

This was one of the key decisions that Prime Minister Narendra Modi took on his first day at Seva Teerth, where the PMO will now be housed.


In 2016, the government had launched a similar scheme with a corpus of Rs 10,000 crore, with contributions spread over the 14th and 15th finance commission.

Following the successful utilisation of the first tranche, a second phase of ₹10,000 crore was sanctioned in the budget for 2025-26.

So far more than 200,000 entities have been recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT), which is the monitoring agency for the fund. These entities are eligible for incentives under the Startup India Action Plan.

The scheme was set up to catalyse venture capital investments and is operationalised by Small Industries Development Bank of India (SIDBI), which provides capital to the Securities and Exchange Board of India-registered alternative investment funds (AIFs), which in turn invest in startups. SIDBI is the operating agency for FFS. AlFs supported under FFS are required to invest at least two times the amount committed under FFS in startups.