Cabinet Clears ₹10,000 Crore Startup India Fund of Funds 2.0 to Boost Deep Tech and Innovation
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 to mobilize venture capital and accelerate the growth of India’s startup ecosystem.
Announced under the Startup India initiative, the new fund aims to catalyse the next phase of India’s innovation journey by mobilising long-term domestic capital, strengthening the venture capital landscape, and supporting entrepreneurship driven by technology and innovation.
Building on a decade of startup growth
Since the launch of Startup India in 2016, India’s startup ecosystem has expanded dramatically—from fewer than 500 startups to more than 2 lakh startups recognised by the Department for Promotion of Industry and Internal Trade. The year 2025 recorded the highest-ever annual startup registrations, underscoring the sector’s rapid expansion.
Key focus areas of FoF 2.0
The new fund adopts a targeted and segmented funding strategy to support:
- Deep tech & advanced manufacturing: Encouraging breakthroughs in high-tech sectors requiring long-term capital.
- Early-growth stage startups: Providing financial support to reduce early-stage failure risks.
- National outreach: Promoting investments beyond major metros to foster innovation nationwide.
- High-risk capital gaps: Channeling funds into priority sectors vital for self-reliance and economic growth.
- Strengthening domestic VC ecosystem: Supporting smaller venture funds to deepen India’s investment base.
Driving innovation-led economic growth
Startup India FoF 2.0 is expected to boost India’s innovation-led growth by enabling globally competitive technologies, strengthening manufacturing capabilities, generating high-quality jobs, and enhancing economic resilience.
Aligned with the national vision of Viksit Bharat @ 2047, the initiative reinforces the government’s commitment to empowering entrepreneurs, fostering innovation, and positioning India as a global hub for startup-driven growth.
