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The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has approved the establishment of the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of INR 10,000 crore to mobilize venture capital for the startup ecosystem.
According to a PIB release, the scheme is aimed at accelerating long-term domestic capital for startups and solidifying the VC ecosystem.
The scheme is launched under the Startup India initiative and Startup India FoF 2.0 is poised to build on previous efforts with the Fund of Funds for Startups (FFS 1.0), which was launched in 2016 to address funding gaps and catalyse the domestic venture capital market for startups.
According to state data, India’s startup ecosystem has grown from fewer than 500 startups to over 2 lakh Department for Promotion of Industry and Internal Trade (DPIIT)-recognised startups today. 2025 also saw the highest-ever annual startup registrations.
“Building on the transformational success of Startup India since 2016 and the strong outcomes of FFS 1.0, this Fund will mobilise long-term domestic capital for deep tech, capital-intensive manufacturing and early-growth startups. This move will strengthen India’s venture capital ecosystem, crowd in private investment and accelerate high-quality job creation across the country, advancing our Govt’s ambition to make India a global innovation hub,” said Piyush Goyal, Union Minister of Commerce & Industry, in a social media post.
According to the PIB release, under FFS 1.0, the full corpus of INR. 10,000 crore has been committed to 145 Alternative Investment Funds (AIFs), which have invested over INR. 25,500 crore in more than 1,370 startups across the country.
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