New Delhi, February 13 The government on Friday approved the second tranche of the Startup India Fund of Funds Scheme, with a corpus of Rs 10,000 crore.
This will encourage startups in the early stages and deep-tech research, Prime Minister Narendra Modi said in a social media post.
On his first day at Seva Teerth, the prime minister's new office, Modi signed files related to the empowerment of the poor, the marginalized, farmers, youth, and women.
The key decisions include "approval for a Startup India Fund of Funds 2.0 with a corpus of Rs 10,000 crore," the post stated.
The Prime Minister on Friday moved to his new office, Seva Teerth, from the colonial-era South Block building near Rashtrapati Bhavan on Raisina Hill. This move took place on February 13, marking 95 years since the formal inauguration of New Delhi as India's modern capital in 1931.
In 2016, the government had established a Fund of Funds worth Rs 10,000 crore to provide seed capital and enable startups to take calculated risks.
Following the successful utilization of the first tranche, a second phase of Rs 10,000 crore was approved in the Union Budget for 2025-26.
So far, over 2 lakh entities have been recognized as startups by the Department for Promotion of Industry and Internal Trade (DPIIT). These entities are eligible for incentives under the Startup India action plan.
The scheme is designed to catalyze venture capital investments and is implemented by the Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs), which in turn invest in startups.
AIFs supported under the Fund of Funds Scheme (FFS) are required to invest at least twice the amount committed under the FFS in startups.
DPIIT is the monitoring agency, and SIDBI is the operating agency for the FFS.