Union Cabinet Approves Rs 10,000 Crore Startup India Fund of Funds 2.0

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of the Startup India Fund of Funds 2.0 with a total corpus of Rs 10,000 crore to mobilise venture capital for the country’s startup ecosystem.

"In a major boost to India’s growing startup ecosystem, the Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, has approved the establishment of the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of Rs. 10,000 crore for the purpose of mobilizing venture capital for the startup ecosystem of the country," an official statement said on Saturday.

The fund aims to boost the next phase of India’s startup journey by mobilising long-term domestic capital, strengthening the venture capital ecosystem and supporting innovation-led entrepreneurship across the country.

Launched under the Startup India initiative, the Startup India FoF 2.0 builds on nearly a decade of efforts to position India among the world’s leading startup nations.

A fund of funds (FoF) does not invest directly in startups or companies. Instead, it invests in other venture capital or private equity funds, enabling professional fund managers to deploy capital while spreading risk.

Since 2016, the number of Department for Promotion of Industry and Internal Trade (DPIIT)-recognised startups has grown from fewer than 500 to over two lakh, with 2025 recording the highest-ever annual registrations.

The Startup India Fund of Funds 2.0 is expected to play a key role in advancing India’s innovation-led growth by supporting startups developing globally competitive technologies, products and solutions.

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