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Informist, Saturday, Feb. 14, 2026

 

--Cabinet OKs INR 100 bln for Startup India Fund of Funds 2.0 

 

NEW DELHI – The Union Cabinet Friday approved the establishment of Startup India Fund of Funds 2.0 with a total corpus of INR 100 billion for the purpose of mobilising venture capital for the startup ecosystem of the country. "The Scheme is designed to accelerate the next phase of India's startup journey by mobilising long-term domestic capital, strengthening the venture capital ecosystem, and supporting innovation-led entrepreneurship across the country," the government said in a release.

 

The Fund of Funds for Startups was first launched in 2016 to address funding gaps and catalyse the domestic venture capital market for startups. Under the first leg of the scheme, the entire corpus of INR 100 billion was committed to 145 alternative investment funds, who then invested over INR 255 billion in more than 1,370 startups across the country.

 

"Startup India Fund of Funds 2.0 is designed to take Indian innovation to the next level," Information and Broadcasting Minister Ashwini Vaishnaw said Saturday. "The new fund will have a targeted, segmented funding approach to support," he said. 

 

Under the second leg of the scheme, funding will be directed towards deep-tech and tech-driven innovative manufacturing by prioritising breakthroughs in high-tech areas that require patient, long-term capital. It empowers early-growth stage founders by providing a safety net for new and innovative ideas, reducing early-stage failures caused by lack of funding, the government said. The scheme is also designed to address high-risk capital gaps by directing greater capital to priority areas which are important for self-reliance and boosting economic growth.

 

The scheme will "strengthen India's domestic venture capital base, particularly smaller funds to further boost the domestic investment landscape," the government said.  End

 

Reported by Priyasmita Dutta

Edited by Ashish Shirke

 

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