The Department for Promotion of Industry and Internal Trade (DPIIT) has issued operational guidelines for the ₹10,000 crore Startup India Fund of Funds 2.0, setting in motion a structured roadmap to channel capital into the country’s growing startup ecosystem.
According to the Ministry of Commerce and Industry, the framework outlines clear mechanisms for fund deployment, governance, and monitoring, aimed at improving the efficiency and transparency of capital flows to startups.
The scheme will be implemented through commitments to SEBI-registered Category I and II Alternative Investment Funds (AIFs), which will, in turn, invest in DPIIT-recognised startups. The Small Industries Development Bank of India has been designated as the implementation agency and will oversee execution through a structured process for selecting and monitoring AIFs.
Startup India FoF 2.0 is expected to deepen the domestic venture capital ecosystem, boost innovation-led enterprises, and further strengthen India’s position as a global startup hub.
