Fund of Funds 2.0: The second tranche of Rs 10,000 crore under the Fund of Funds 2.0, which was approved by the Modi Cabinet in February 2026, will have a wider scope, with a focus on different segments, said a DPIIT notification.
The dedicated fund for startups will focus on dedicated support for deep-tech and manufacturing startups.
The Fund of Funds is aimed at mobilising venture capital (VC). It will support deep tech, tech-driven innovative manufacturing startups, and early-growth stage enterprises.
"Startup India Fund of Funds 2.0 will have an expanded scope with a segmented approach to target key segments for real innovation," the notification by the Department for Promotion of Industry and Internal Trade (DPIIT) said.
Fund of Funds 2.0 will contribute to the corpus of SEBI-registered Alternative Investment Funds (AIFs) for investing in equity and equity-linked instruments of entities recognised as startups by the central government.
- The first segment of Fund of Funds 2.0 will focus on supporting deep tech. Startups engaged in developing novel solutions addressing complex problems that involve longer R&D cycles, and higher costs will be given priority funding.
- The second segment will provide capital to smaller AIFs (micro VCs) supporting early growth-stage startups. Enterprises in early phases of developing a technology, product or service will be the focus.
- The third segment will support tech-driven innovative manufacturing startups, while the fourth will cater to AIFs supporting sector/stage agnostic startups.
The DPIIT will issue the guidelines later. The guidelines will also include other aspects important to realise the expanded scope of the scheme.
Small Industries Development Bank of India (SIDBI), which was the implementation agency of FFS 1.0, will also be the implementing agency for FoF 2.0.
