In a major boost to India’s thriving startup ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi has greenlit the establishment of Startup India Fund of Funds 2.0 (SIFoF 2.0) with a hefty corpus of ₹10,000 crore. This strategic move aims to channel venture capital into emerging ventures, fueling the next phase of innovation-driven entrepreneurship across the nation.
The initiative builds on the resounding success of the original Fund of Funds for Startups (FFS 1.0), launched in 2016 to bridge funding gaps and invigorate domestic venture capital markets. Under FFS 1.0, the entire ₹10,000 crore was committed to 145 Alternative Investment Funds (AIFs), which in turn invested over ₹25,500 crore into more than 1,370 startups spanning diverse sectors like agritech, AI, robotics, clean tech, fintech, healthcare, and space technology.
India’s startup landscape has undergone a remarkable transformation since the Startup India initiative kicked off in 2016. From fewer than 500 recognized startups, the ecosystem has exploded to over 200,000 DPIIT-registered entities, with 2025 poised to witness record-high annual registrations. SIFoF 2.0 is designed to sustain this momentum by mobilizing long-term domestic capital, strengthening the VC ecosystem, and supporting innovation-led enterprises nationwide.
This fund will play a pivotal role in advancing India’s innovation agenda, empowering startups to develop globally competitive technologies, products, and solutions. By bolstering manufacturing capabilities, generating high-quality jobs, and positioning India as a global innovation hub, it aligns seamlessly with the Viksit Bharat 2047 vision. The government’s unwavering commitment to entrepreneurs underscores its resolve to unlock the full potential of the startup revolution.