Govt Rolls Out Rs 10,000 Cr Fof 2.0 To Support Deep-Tech, Growth-Stage Startups

2026-04-14 02:06:55

(MENAFN- KNN India) New Delhi, Apr 14 (KNN) The government has notified the Rs 10,000-crore Startup India Fund of Funds 2.0 (FoF 2.0) to mobilise venture and growth capital for startups, with a focus on emerging and innovation-driven sectors.

The scheme builds on the earlier Fund of Funds for Startups (FFS 1.0), launched in 2016 under the Startup India initiative to address funding gaps and catalyse domestic capital in the startup ecosystem.

Under FoF 2.0, the government will commit funds to SEBI-registered Alternative Investment Funds (AIFs) over the 16th and 17th Finance Commission cycles. These AIFs will, in turn, invest in startups, enabling broader capital mobilisation across sectors and growth stages.

The scheme will prioritise funding for deep-tech startups, early growth-stage ventures backed by smaller AIFs, and technology-driven and innovative manufacturing enterprises, while also retaining flexibility to support sector-agnostic opportunities.

A structured selection mechanism has been put in place, with a Venture Capital Investment Committee (VCIC) comprising ecosystem experts to evaluate AIFs. Oversight will be ensured through an Empowered Committee, along with provisions for co-investment by government and institutional investors under defined governance safeguards.

Detailed operational guidelines will be issued by the Department for Promotion of Industry and Internal Trade.

The Small Industries Development Bank of India (SIDBI) has been designated as the implementation agency and will operationalise the scheme, with an additional domestic agency to be appointed.

According to the official release, the initiative is expected to strengthen India's innovation ecosystem by supporting globally competitive technologies and products, enhancing manufacturing capabilities, generating high-quality employment and contributing to long-term economic resilience in line with the vision of Viksit Bharat 2047.

(KNN Bureau)

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