The Union Cupboard, chaired by the Prime Minister, Narendra Modi, has accepted the institution of the Startup India Fund of Funds 2.0 (FoF 2.0) with a complete corpus of Rs 10,000 crore to mobilise enterprise capital for the nation’s startup ecosystem.

The brand new fund builds on almost a decade of coverage help underneath the Startup India initiative, launched in 2016. On the time of its launch, India had fewer than 500 recognised startups. As we speak, the nation has over 2 lakh startups recognised by the Division for Promotion of Trade and Inner Commerce (DPIIT), with 2025 recording the best ever annual startup registrations.

FoF 2.0 follows the sooner Fund of Funds for Startups (FFS 1.0), which was launched in 2016 to deal with structural funding gaps and catalyse home enterprise capital participation. Below FFS 1.0, the complete corpus of Rs 10,000 crore was dedicated to 145 SEBI-registered Different Funding Funds (AIFs).

These AIFs collectively invested greater than Rs 25,500 crore in over 1,370 startups throughout sectors together with agriculture, synthetic intelligence, robotics, automotive, clear tech, shopper items and providers, e-commerce, schooling, fintech, meals and drinks, healthcare, manufacturing, house tech and biotechnology.

The federal government mentioned FFS 1.0 performed a key position in nurturing first-time founders, crowding in personal capital and constructing the foundations of India’s enterprise capital ecosystem.

Startup India FoF 2.0 will proceed the mannequin of investing in SEBI-registered AIFs, which can in flip deploy capital into startups. Nevertheless, the second part is designed with a extra focused and segmented method.

The fund will prioritise deep tech and technology-driven progressive manufacturing, areas that sometimes require affected person and long-term capital. It would additionally give attention to supporting early-growth stage founders, aiming to cut back startup failures attributable to restricted entry to early-stage funding.

One other key goal is to strengthen India’s home enterprise capital base, notably smaller funds, and to increase capital entry past main metro cities. The scheme is meant to deal with high-risk capital gaps in precedence sectors aligned with self-reliance and long-term financial progress.

In keeping with the federal government, Startup India FoF 2.0 is anticipated to play a crucial position in advancing India’s innovation-led progress agenda. By backing startups creating globally aggressive applied sciences, merchandise and options, the fund goals to strengthen financial resilience, enhance manufacturing functionality, generate high-quality jobs and place India as a world innovation hub.