India Launches New Rs 10,000 Crore Fund for Budding Entrepreneurs

The Indian government announced a new Fund of Funds Scheme (FFS) with a Rs 10,000 crore corpus to support the growth of entrepreneurs. This expands on a previous initiative and involves the Small Industries Development Bank of India managing contributions to startup-focused Alternate Investment Funds.

The Indian government has unveiled a new Rs 10,000 crore Fund of Funds Scheme (FFS) aimed at fostering entrepreneurial growth across the nation. Finance Minister Nirmala Sitharaman stated that new funds will bolster the existing framework catering to startups.

This move continues from a similar initiative launched in 2016 with an equivalent corpus. The Small Industries Development Bank of India (SIDBI) plays a pivotal role in channeling these resources to Securities and Exchange Board of India (SEBI)-registered Alternate Investment Funds (AIFs), who then invest in promising startups.

Major investment firms like Chiratae Ventures and Blume Ventures are among those supported under this scheme. The government remains committed to nurturing innovation and has already recognized over 1,52,139 startup entities as part of the Startup India initiative launched in 2016.

(With inputs from agencies.)