Govt clears ₹10,000 crore Startup India Fund of Funds 2.0 to boost deep tech

The second tranche, under the Startup India initiative, aims to mobilise long-term domestic capital, strengthen venture funding beyond metros, and accelerate growth in deep tech, advanced manufacturing, and early-stage enterprises.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹10,000 crore Startup India Fund of Funds 2.0 to strengthen venture capital support for emerging enterprises, particularly in deep technology and innovation-led manufacturing.

The second tranche builds on the original Fund of Funds for Startups (FFS) launched in 2016 under the Startup India programme. The new fund is intended to sustain investment momentum and widen the scope of support to high-tech and early-growth ventures requiring patient capital.

Expanding India’s venture capital base

Officials said the initiative is designed to mobilise long-term domestic capital, deepen the venture capital ecosystem, and bridge high-risk funding gaps that often limit early-stage innovation. An Empowered Committee will guide and oversee the implementation of the scheme.

Under the first phase, the entire ₹10,000 crore corpus was committed to 145 Alternative Investment Funds (AIFs), which in turn invested over ₹25,500 crore in more than 1,370 startups across sectors including artificial intelligence, agriculture, robotics, clean energy, fintech, healthcare, manufacturing, and space technology.

The government said the initial fund helped nurture first-time founders, crowd in private investment, and lay the foundation for a stronger domestic venture capital market.

Focus on deep tech and regional inclusion

The second phase will adopt a more targeted and segmented funding strategy, prioritising deep tech, tech-driven manufacturing, and early-growth enterprises. It will also seek to expand funding access beyond major metropolitan hubs, encouraging innovation across smaller cities and emerging startup clusters.

Since the launch of Startup India in 2016, the number of government-recognised startups has grown from around 500 to over two lakh. In 2025 alone, more than 49,400 startups were recognised — the highest in a single year. India currently has nearly 100 unicorns, startups valued at $1 billion or more.

The government has also doubled the turnover threshold for startup recognition to ₹200 crore, further broadening eligibility under the scheme.