New Delhi, Feb 16 (KNN) The Union Cabinet has approved the establishment of Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of Rs 10,000 crore to mobilise venture capital for the country’s startup ecosystem.
The new fund aims to accelerate the next phase of India’s startup growth by unlocking long-term domestic capital, deepening the venture capital landscape and strengthening innovation-driven entrepreneurship across sectors.
Launched under the Startup India programme, the second phase of the Fund of Funds builds on nearly a decade of policy support. Since 2016, the number of startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) has increased from fewer than 500 to over 2 lakh, with 2025 recording the highest annual registrations so far.
According to an official statement issued by the Ministry of Commerce and Industry, Startup India FoF 2.0 has been structured with a targeted and segmented funding approach.
The scheme will prioritise deep-tech and technology-driven innovative manufacturing, focusing on sectors that require patient, long-term capital support. It will also seek to empower early-growth stage founders by addressing funding gaps that often lead to early-stage failures.
The fund aims to expand its national footprint by encouraging investments beyond major metropolitan centres, ensuring that innovation ecosystems develop across tier-II and tier-III cities.
It is also designed to address high-risk capital gaps in strategic and priority areas critical for self-reliance and long-term economic growth.
In addition, the initiative is expected to strengthen India’s domestic venture capital base, with a particular emphasis on supporting smaller and emerging fund managers to broaden the investment landscape.
The government said the fund would play a pivotal role in advancing India’s innovation-led growth agenda by backing globally competitive technologies, products and solutions.
It is expected to contribute to economic resilience, manufacturing expansion and high-quality job creation, while positioning India as a global innovation hub.
(KNN Bureau)
