The government of India is exploring setting up a dedicated Fund of Funds (FoF) for DeepTech startups and companies to support the next generation of companies, said Finance Minister Nirmala Sitharaman while announcing the Union Budget 2025 on February 1.
The Finance Minister also said that around 10,000 fellowships will be provided in IITs and IISc for tech research, in the next 5 years. The announcement also includes around Rs 20,000 crores of investment to drive private sector innovation.
The DeepTech FoF comes after the FM announced proposal to expand the scope of the Small Industries Development Bank of India (Sidbi) Fund of Funds for Startups (FFS) by allocating an additional Rs 10,000 crore in corpus to the scheme, in a bid to offer funding to startups.
With the fresh allocation, the scheme's total outlay would reach a total of Rs 20,000 crore.
What is the Sidbi Fund of Funds for Startups?
The Sidbi FFS is one of three key schemes promoted by the government under the Startup India initiative.
Launched on January 16, 2016, the FFS invests in Alternative Investment Funds (AIFs), rather than investing in startups directly. Through it, Sidbi has so far deployed over Rs 11,000 crore in venture capital and venture debt firms, including Stellaris Venture Partners, Sanjay Nayar’s Sorin Investments, Fireside Ventures, Chiratae Ventures, Trifecta Capital and Alteria Capital.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
