Home
Others
Others News
Government Green Lights Rs. 10,000 Crore Fund of Funds 2.0 Under the Startup India Mission

Government Green Lights Rs. 10,000 Crore Fund of Funds 2.0 Under the Startup India Mission

The Union Cabinet has approved the establishment of the Startup India Fund of Funds 2.0.

Written by Akash Dutta, Edited by Ketan Pratap | Updated: 16 February 2026 14:24 IST

Government Green Lights Rs. 10,000 Crore Fund of Funds 2.0 Under the Startup India Mission

Photo Credit: Pixabay/Geralt

The Government will also support early growth-stage founders with the new corpus

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Startup India FoF 2.0 has received a corpus of Rs. 10,000 crore
The fund will be used to mobilise venture capital market for startups
It will support deep tech and tech-driven manufacturing startups

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the establishment of the Startup India Fund of Funds 2.0 with a total corpus of Rs. 10,000 crore on Saturday. The new scheme follows the Fund of Funds for Startups 1.0, which was launched in 2016 to address funding gaps in the Indian startup ecosystem and help mobilise the domestic venture capital market. With the second edition, the Government is also taking a structured approach towards supporting new-age startups, highlighting a focus on deep tech, manufacturing, and early growth-stage companies.

Startup India Fund of Funds 2.0 Approved by the Cabinet

With the establishment of Startup India FoF 2.0, a corpus of Rs. 10,000 crore has been set aside to enable the private investors in the country to invest in startups. As explained in a TechCrunch report, the new scheme is a common venture capital model where the Government backs startups indirectly by providing capital to domestic investors.

This way, the venture capital market can have access to funds that it can bet on startups with a high-growth potential or an innovation that can disrupt the existing market. The previous iteration of the scheme was launched in 2016, and it committed funds to 145 Alternative investment Funds (AIFs). These AIFs, subsequently, invested more than Rs. 25,500 crore in over 1,370 Indian startups across agriculture, artificial intelligence (AI), robotics, automotive, clean tech, consumer goods, e-commerce, and more.

Anthropic Might Be Facing a Legal Complaint in India By a Same-Name Firm

With Startup India FoF 2.0, the Government is taking a more targeted approach. It is aimed to support deep tech and tech-driven innovative manufacturing startups to prioritise breakthroughs in high-tech areas that typically have a long gestation period. Additionally, early-growth stage founders, who suffer from a lack of funding and a safety net, will also be prioritised in the second iteration.

The Union Cabinet is also shifting its focus to the hinterland of the country, encouraging venture capitalists to invest in startups beyond the metro cities. It has also identified high-risk capital gaps in areas which are critical for self-reliance and economic development, and startups working in these sectors will be prioritised.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: India, Startups, Startup India Fund of Funds 2, Startup India Initiative, Enterprise

Akash Dutta Email Akash Dutta

Akash Dutta is a Chief Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More