In a significant step to strengthen India’s fast-growing startup ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi has given the green signal to Startup India Fund of Funds 2.0 (FOF 2.0). Under this scheme, a total fund of Rs 10,000 crore will be created, which will be helpful in raising venture capital for startups across the country.
This initiative builds on the success of the Fund of Funds (FFS 1.0) launched in 2016 under the Startup India initiative. Through FFS 1.0, Rs 10,000 crore was given to 145 alternative investment funds (AIFs), which invested more than Rs 25,500 crore in more than 1,370 startups in sectors such as agriculture, AI, robotics, fintech, healthcare, space technology.
Since 2016, the number of Indian startups recognized by DPIIT has increased from 500 to over 2 lakh. The number of registrations is expected to reach a record level in 2025. FoF 2.0 will strengthen the venture capital ecosystem by strengthening domestic capital and encourage innovation-based entrepreneurship.
This fund will create globally competitive technologies, boost manufacturing, create quality employment and make India a global innovation hub. In line with the vision of Developed India 2047, it is a symbol of government commitment.
Comments are closed.