Government Bolsters Startup Growth with New Rs 10,000 Crore Fund of Funds

The government unveiled a new Fund of Funds Scheme (FFS) with a Rs 10,000 crore corpus, aiming to stimulate venture capital investments by backing startups. Managed by SIDBI, the initiative promises substantial funding for AIFs, fostering technological innovation across diverse industries and significantly boosting India's startup ecosystem.

The government on Saturday unveiled an ambitious new Fund of Funds Scheme (FFS) with an impressive Rs 10,000 crore corpus, designed to ignite growth and encourage budding entrepreneurs across the nation.

Finance Minister Nirmala Sitharaman emphasized the scheme's role in propelling venture capital investments. The initiative, operationalized by the Small Industries Development Bank of India (SIDBI), aims to allocate substantial capital to SEBI-registered Alternate Investment Funds (AIFs), which will then invest in innovative startups.

This bold move follows a similar initiative from 2016, and has already garnered commitments surpassing Rs 91,000 crore from prominent AIFs. With an expanding scope and fresh contributions, the government continues its mission to nurture innovation through the Startup India initiative.

(With inputs from agencies.)