In a major boost to India’s startup ecosystem, the Union Cabinet, chaired by Narendra Modi, has approved the establishment of the Startup India Fund of Funds 2.0 with a total corpus of ₹10,000 crore to mobilise venture capital for startups across the country. The scheme aims to accelerate India’s next phase of entrepreneurial growth by unlocking long-term domestic capital, strengthening the venture capital landscape, and supporting innovation-led businesses.

Launched under the Startup India initiative, FoF 2.0 builds on nearly a decade of ecosystem development. Since 2016, India’s startup base has expanded from fewer than 500 to over two lakh DPIIT-recognised startups, with 2025 recording the highest-ever annual registrations.

The new fund follows the success of Fund of Funds for Startups 1.0, under which the entire ₹10,000 crore corpus was committed to 145 Alternative Investment Funds, enabling investments of over ₹25,500 crore in more than 1,370 startups across sectors such as AI, fintech, healthcare, manufacturing, space tech, and biotechnology.

FoF 2.0 adopts a targeted approach, focusing on deep tech and innovative manufacturing, early-stage founders, and expanding investments beyond major metros. It also aims to bridge high-risk capital gaps and strengthen smaller domestic venture funds.