Indian Economy News

DPIIT issues operational guidelines to operationalize US$ 1.08 billion Startup India Fund of Funds 2.0

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has issued operational guidelines for the Startup India Fund of Funds 2.0 (FoF 2.0), with a corpus of Rs. 10,000 crore (US$ 1.08 billion). The guidelines establish a structured framework for fund deployment, governance and monitoring, aimed at improving the efficiency of capital flows into India’s startup ecosystem. The scheme will be implemented through commitments to Securities and Exchange Board of India (SEBI)-registered Category I and II Alternative Investment Funds (AIFs), which will, in turn, invest in DPIIT-recognised startups.

The Small Industries Development Bank of India (SIDBI) will act as the initial implementation agency, responsible for selecting and monitoring AIFs. At the same time, DPIIT plans to onboard an additional agency to expand operational capacity. The fund will function as a catalytic mechanism to mobilise private capital rather than directly investing in startups, thereby strengthening domestic venture capital and reducing dependence on foreign funding. The scheme is expected to support priority sectors such as deep technology, innovation-driven manufacturing, and early-stage enterprises, while also expanding access to funding beyond metro regions. Overall, the initiative is poised to enhance the depth and quality of India’s startup ecosystem and reinforce its position as a global innovation hub.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.