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Corporate Update

₹10,000 Cr Startup Fund 2.0 Gets Operational Push

• By  Textile Excellence
• April 30, 2026

The government has operationalised the ₹10,000 crore Startup India Fund of Funds (FoF) 2.0, laying out a clear framework to accelerate capital flow into India’s startup ecosystem.

The scheme will be deployed through SEBI-registered Category I and II AIFs, ensuring disciplined investments and crowding in private capital. The fund will not invest directly but act as a catalyst, unlocking larger pools of private funding across sectors and stages.

SIDBI will lead implementation, with plans to onboard another agency to expand reach and sectoral expertise. Funds will be segmented into deep tech, early-stage, manufacturing-focused, and broad-based categories, targeting key gaps in the ecosystem.

A two-stage selection process and oversight by a Venture Capital Investment Committee will ensure quality and accountability.

Crucially, the framework mandates minimum private capital mobilisation, reinforcing market discipline.

SIDBI will lead implementation, with plans to onboard another agency to expand reach and sectoral expertise. Funds will be segmented into deep tech, early-stage, manufacturing-focused, and broad-based categories, targeting key gaps in the ecosystem.