Startup India Fund of Funds 2.0

On 13th February 2026, the Union Cabinet approved the establishment of the Startup India Fund of Funds 2.0 (FoF 2.0) with a corpus of Rs. 10,000 crore.

The initiative has been launched under the broader Startup India programme to strengthen India’s startup ecosystem and deepen access to growth capital.

Aspect	Details
FoF 2.0 Approval	The Union Cabinet approved the Startup India Fund of Funds 2.0 with a total corpus of Rs. 10,000 crore.
Startup India Vision	The new fund builds on nearly a decade of efforts under the Startup India initiative to establish India as a leading global startup ecosystem.
Fund of Funds Model	A Fund of Funds (FoF) generally does not invest directly in startups but channels investments through SEBI-registered Alternative Investment Funds (AIFs).
Investment Structure	The architecture enables capital support for startups through professionally managed investment funds operating across sectors and growth stages.
Role of SIDBI	SIDBI has been the key institution associated with the Startup India Fund of Funds framework.
Objective	FoF 2.0 aims to strengthen startup financing, promote innovation, and expand India’s entrepreneurial ecosystem through institutional funding support.

PT Facts

Startup India: Launched on 16 January 2016.
FoF Model: Does not directly invest in startups.
Investment Route: Investments are made through SEBI-registered Alternative Investment Funds.
SIDBI: Small Industries Development Bank of India plays a central role in the FoF architecture.
AIFs: Alternative Investment Funds are regulated investment vehicles under SEBI.
Startup Ecosystem: India is among the world’s leading startup ecosystems by number of startups and unicorns.

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