In a major boost to India’s thriving startup ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi has greenlit the Startup India Fund of Funds 2.0 (FoF 2.0) with a massive corpus of Rs 10,000 crore. This strategic initiative aims to channel vital venture capital into innovative ventures, propelling the nation’s entrepreneurial landscape to new heights.
The decision underscores the government’s commitment to fostering long-term domestic capital infusion and strengthening the venture capital framework. By supporting innovation-driven entrepreneurship across the country, FoF 2.0 is poised to accelerate the next phase of India’s startup journey.
Launched under the flagship Startup India initiative, this fund builds on nearly a decade of sustained efforts to position India among the world’s top startup hubs. Since its inception in 2016, the ecosystem has exploded from fewer than 500 startups to over 200,000 recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), with 2025 registrations hitting record highs.
FoF 2.0 extends the resounding success of its predecessor, FoF 1.0, which was introduced in 2016 to bridge funding gaps and invigorate domestic VC markets. That fund allocated its full Rs 10,000 crore to 145 Alternative Investment Funds (AIFs), catalyzing over Rs 25,500 crore in investments into more than 1,370 startups spanning diverse sectors like agritech, AI, robotics, clean tech, fintech, healthcare, and space technology.
This new infusion is expected to play a pivotal role in advancing India’s innovation-led growth agenda. By empowering startups to develop globally competitive technologies, products, and solutions, it will bolster economic resilience, enhance manufacturing capabilities, generate high-quality jobs, and cement India’s status as a global innovation powerhouse.
Aligned with the Viksit Bharat 2047 vision, FoF 2.0 exemplifies the government’s unwavering dedication to empowering entrepreneurs, fueling innovation, and unlocking the full potential of India’s startup ecosystem.