In a major push to strengthen India’s startup ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the Startup India Fund of Funds 2.0 (FoF 2.0) with a corpus of Rs. 10,000 crore. The initiative aims to mobilise long-term domestic capital, strengthen the venture capital ecosystem, and accelerate innovation-led entrepreneurship across the country.
Building on nearly a decade of progress under the Startup India initiative, FoF 2.0 marks the next phase of India’s startup journey. Since 2016, India’s startup landscape has expanded dramatically—from fewer than 500 startups to over 2 lakh DPIIT-recognised ventures, with 2025 recording the highest-ever annual registrations.
The new fund follows the success of the Fund of Funds for Startups (FFS 1.0), launched in 2016 to bridge funding gaps and catalyse domestic venture capital. Under FFS 1.0, the full Rs. 10,000 crore corpus was committed to 145 Alternative Investment Funds (AIFs), which collectively invested over Rs. 25,500 crore in more than 1,370 startups across sectors including agriculture, artificial intelligence, robotics, clean tech, fintech, healthcare, manufacturing, space tech, and biotechnology.
FoF 2.0 adopts a targeted, segmented approach, with a strong focus on deep tech and technology-driven manufacturing. It aims to support early-stage founders, address high-risk capital gaps, encourage investment beyond major metros, and strengthen India’s domestic venture capital base—particularly smaller funds. The fund will prioritise high-tech breakthroughs requiring patient, long-term capital and support sectors critical to self-reliance and economic growth.
