New Delhi — May 27, 2026 — The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the Startup India Fund of Funds 2.0 (FoF 2.0) with a corpus of ₹10,000 crore. The initiative is designed to mobilise venture capital for India’s rapidly expanding startup ecosystem and accelerate innovation‑led entrepreneurship across sectors.
FoF 2.0 builds on the success of the first Fund of Funds for Startups (FFS 1.0), launched in 2016. Under the earlier scheme, the entire ₹10,000 crore corpus was committed to 145 Alternative Investment Funds (AIFs), which collectively invested over ₹25,500 crore in more than 1,370 startups spanning artificial intelligence, robotics, clean technology, fintech, healthcare, manufacturing, biotechnology, and space technology.
The new fund adopts a targeted approach, prioritising deep tech ventures and technology‑driven manufacturing startups that require patient, long‑term capital. It will also support early‑growth stage companies to reduce failures caused by limited access to funding in their formative years. Importantly, FoF 2.0 aims to expand investment beyond metropolitan hubs, ensuring innovation thrives across India.
According to the Ministry of Commerce & Industry, the scheme will strengthen India’s domestic venture capital base, particularly smaller funds, while addressing high‑risk capital gaps in priority sectors critical to self‑reliance and economic growth. The initiative is aligned with the government’s Viksit Bharat @ 2047 vision, expected to contribute to economic resilience, job creation, enhanced manufacturing capabilities, and India’s emergence as a global innovation hub.
With this approval, the government has reaffirmed its commitment to empowering entrepreneurs and unlocking the full potential of India’s startup ecosystem
