The Department for Promotion of Industry and Internal Trade (DPIIT) has issued operational guidelines for 10 thousand crore rupees startup India Fund of Funds 2.0. The guidelines lay down a structured framework to operationalise the corpus through clearly defined mechanisms for fund deployment, governance, and monitoring, with the objective of improving the efficiency of capital flows into India’s startup ecosystem.
The Ministry of Commerce and Industry said that the scheme will be implemented through commitments to SEBI-registered Category I and II Alternative Investment Funds, which will invest in DPIIT-recognised startups. The Ministry said that the Small Industries Development Bank of India (SIDBI) will act as the initial implementation agency and will undertake execution through a structured Alternative Investment Funds selection and monitoring process.
Startup India FoF 2.0, through its structured operational design, is expected to significantly enhance the depth and quality of domestic venture capital, support innovation-driven enterprises, and strengthen India’s position as a leading global startup hub.
