Startup India Fund of Funds 2.0 (FoF 2.0)
Department for Promotion of Industry and Internal Trade (DPIIT)
Cabinet approved 14 Feb 2026; notified by DPIIT 14 Apr 2026; operational guidelines released 25 Apr 2026. ₹10,000 crore via SIDBI into SEBI-registered AIFs across four segments: deep tech, micro-VCs backing early-growth startups, tech-driven innovative manufacturing, and sector/stage-agnostic funds. AIFs apply on SIDBI's portal.
What changed: Newly operational (Apr 2026)
Startup India Fund of Funds 2.0 supports startups by channeling government capital into venture funds to boost investment in emerging businesses, aiming to fuel innovation in priority sectors.
Objectives
The Government operationalized the Startup India Fund of Funds 2.0 (Startup India Fund of Funds 2.0 (FoF 2.0)) with a total corpus of ₹10,000 crore. Small Industries Development Bank of India (SIDBI), Implementation Agency (IA) of the FFS 1.0, shall also be the Implementing Agency for the Startup India Fund of Funds 2.0 (FoF 2.0). In addition, another domestic IA(s) shall also be selected to implement the proposed Scheme. The IA(s) will provide capital to SEBI-registered Category I and Category II Alternative Investment Funds (AIFs) who in turn will invest in startups through equity and equity-linked instruments. Investments under Startup India FoF 2.0 AIFs supporting priority segments including deep tech startups, early growth stage startups supported by smaller AIFs, technology-driven and innovative manufacturing startups, and sector or stage agnostic startups.
Who can apply?
- SEBI-registered AIFs can apply for capital under the Scheme.
- The funding is provided to DPIIT recognised startups by selected AIFs.
What do you get?
- The Scheme has a corpus of ₹10,000 crore, which is aimed to be provided to startup through AIFs. AIFs supported under the Scheme are required to invest in startups across stages, adhering to the minimum investment multiplier for various segments as defined in the Operational Guidelines.
- Four segments: deep tech, micro-VCs backing early-growth startups, tech-driven innovative manufacturing, and a sector/stage-agnostic window. Implemented by SIDBI; notified 14 Apr 2026.
How to apply
The application process for AIFs has been digitalised and a detailed application can be submitted by the AIFs on SIDBI’s Fund Application Portal (https://vcfapplication.sidbi.in/login). The AIF applications undergo an eligibility screening and screening based on preliminary questionnaire. Eligible startups can approach selected AIFs for investments.