India boosts startup ecosystem with new funding

Small Industries Development Bank of India to implement the scheme.

The Indian government is supporting startups in the country via significant funding coursed through the Startup India Fund of Funds 2.0 (Startup India FoF 2.0).

Notifying the Startup India FoF 2.0 with a total corpus of ₹10,000 crore, the government said the goal is to mobilise venture and growth capital. The allocation will be focused on alternative investment funds that back deep tech startups, early growth-stage startups, technology-driven manufacturing startups, and other priority segments.

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

The Startup India FoF 2.0 scheme will be implemented by the Small Industries Development Bank of India alongside a domestic implementation agency. It features robust monitoring and oversight mechanisms, as well as provisions for co-investment by government and institutional investors.  

"Aligned with the national vision of Viksit Bharat @ 2047, the fund represents the government's continued commitment to empowering entrepreneurs, fostering innovation, and unlocking the full potential of India's startup ecosystem," the ministry said.