Union Cabinet approves Rs 10,000 cr Startup India Fund of Funds 2.0 | Details

Startup India FoF 2.0 is designed to take Indian innovation to the next level

• Cabinet approves Rs 10,000 crore Startup India Fund of Funds 2.0
• Fund aims to boost innovation and support early-stage startups
• Emphasize deep tech, national reach, and local venture capital

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The union cabinet, chaired by 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 Rs 10,000 crore for the purpose of mobilising venture capital for the startup ecosystem of the country.

The scheme aims to fast-track the next phase of India’s startup growth by unlocking long-term domestic capital, deepening the venture capital landscape, and boosting innovation-driven entrepreneurship nationwide.

Launched as part of the Startup India programme, Startup India FoF 2.0 builds on almost ten years of sustained policy push. Since 2016, India’s startup base has surged from under 500 ventures to over 2 lakh Department for Promotion of Industry and Internal Trade (DPIIT)-recognised startups, with 2025 witnessing a record number of annual registrations.

Key features of Startup India FoF 2.0

Startup India FoF 2.0 is designed to take Indian innovation to the next level. The new fund will have a targeted, segmented funding approach to support:

Deep tech and tech-driven innovative manufacturing: Prioritizing breakthroughs in high-tech areas that require patient, long-term capital.

Empowering early-growth stage founders: Providing a safety net for new and innovative ideas, reducing early-stage failures caused by lack of funding.

National reach: Encouraging investment beyond major metros so that, the innovation thrives in every corner of the country.

Designed to address high‑risk capital gaps: Directing greater capital to priority areas which are important for self-reliance and boosting economic growth.

Strengthen India’s domestic venture capital base, particularly smaller funds to further boost the domestic investment landscape.

Startup India Fund of Funds 2.0 is expected to play a critical role in advancing India’s innovation-led growth agenda. By supporting startups that build globally competitive technologies, products, and solutions, the fund will contribute to strengthening India’s economic resilience, boosting manufacturing capabilities, generating high-quality jobs, and positioning India as a global innovation hub, said a statement by the Ministry of Commerce and Industry.