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Govt Unleashes Rs 10,000 Cr Startup Fund
26 Apr
Summary
- Rs 10,000 crore fund of funds scheme for startups launched.
- Guidelines aim to improve capital flow efficiency for startups.
- SIDBI to act as initial implementation agency for the scheme.
On Saturday, April 26, 2026, the government released comprehensive guidelines for the Rs 10,000 crore fund of funds (FoF) scheme, designed to invigorate India's startup sector. The initiative focuses on refining mechanisms for fund deployment, governance, and monitoring to optimize capital flows.
The scheme will channel investments through Sebi-registered Alternative Investment Funds (AIFs), which will then invest in startups recognized by the DPIIT. This structured approach is intended to ensure disciplined allocation, attract private capital, and broaden funding access for startups across different sectors, stages, and locations.
The Small Industries Development Bank of India (SIDBI) has been appointed as the initial implementation agency. The Department for Promotion of Industry and Internal Trade (DPIIT) plans to bring on board additional agencies to enhance sectoral expertise and institutional capacity.
To address specific ecosystem gaps, the guidelines segment AIFs into categories such as deep tech-focused funds, micro venture capital funds, and those supporting innovative manufacturing. A Venture Capital Investment Committee, comprising industry and academic leaders, will evaluate proposals to ensure effective fund management and investment strategies.
