Cabinet Clears Rs 10,000 cr Startup India Fund of Funds 2.0 to Power Next Growth Phase

New Delhi: The Union Cabinet, led by Prime Minister Narendra Modi, has approved the creation of the Startup India Fund of Funds 2.0 with a corpus of Rs 10,000 crore, aimed at unlocking greater venture capital investment for the country’s expanding startup landscape.

According to an official statement issued on Saturday, the new fund is designed to provide a significant impetus to India’s entrepreneurial ecosystem by mobilising long-term domestic capital and deepening the venture capital market. The initiative seeks to support innovation-driven enterprises across sectors and geographies, reinforcing the foundations of the country’s startup economy.

The Fund of Funds 2.0 builds on the progress made under the Startup India programme over the past decade, during which India has emerged as one of the world’s leading startup hubs. Rather than investing directly in individual startups, a fund of funds channels capital into alternative investment funds, including venture capital and private equity funds. These professionally managed funds, in turn, invest in promising startups, helping diversify risk while ensuring expert oversight.

Since the launch of the Startup India initiative in 2016, the number of startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) has surged from fewer than 500 to more than 200,000. The year 2025 marked a record in annual registrations, reflecting sustained momentum in the sector.

Officials expect the Startup India Fund of Funds 2.0 to catalyse the next phase of growth by backing ventures developing globally competitive technologies, products, and services. By strengthening access to capital, the government aims to accelerate innovation-led development and position Indian startups for greater international success.

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