DPIIT issues operational guidelines for ₹10,000 crore Startup India Fund of Funds 2.0
DPIIT issued operational guidelines on 25 April 2026 for the ₹10,000 crore Startup India Fund of Funds 2.0, to be deployed through SEBI-registered Category I and II AIFs, with SIDBI as the initial Implementation Agency.
Summary
Operational guidelines for the ₹10,000 crore Startup India Fund of Funds 2.0 (FoF 2.0) were issued by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, on 25 April 2026. The scheme will commit funds to SEBI-registered Category I and II Alternative Investment Funds (AIFs), which will invest in DPIIT-recognised startups. The Small Industries Development Bank of India (SIDBI) will be the initial Implementation Agency, and DPIIT will onboard an additional agency. AIFs are grouped into deep tech funds, micro venture capital funds, funds for technology-led manufacturing, and sector- and stage-agnostic funds. AIFs will be chosen in two stages: screening and due diligence by the Implementation Agency, then evaluation by a Venture Capital Investment Committee.
Key facts
- Scheme
- Startup India Fund of Funds 2.0
- Corpus
- ₹10,000 crore
- Issued by
- DPIIT, Ministry of Commerce and Industry; 25 April 2026
- Channel
- SEBI-registered Category I and II AIFs investing in DPIIT-recognised startups
- Implementation Agency
- SIDBI (initial); one more agency to be onboarded
- AIF segments
- Deep tech; micro VC; tech-led manufacturing; sector- and stage-agnostic
- Selection
- Two-stage: Implementation Agency screening, then Venture Capital Investment Committee
Practice MCQs 3 questions
Which institution is the initial Implementation Agency for the Startup India Fund of Funds 2.0 under the April 2026 guidelines?
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Correct answer: C — SIDBI
The guidelines name the Small Industries Development Bank of India (SIDBI) as the initial Implementation Agency; DPIIT will onboard one more agency.
The corpus of the Startup India Fund of Funds 2.0, for which DPIIT issued operational guidelines in April 2026, is:
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Correct answer: A — ₹10,000 crore
The guidelines operationalise the ₹10,000 crore corpus of FoF 2.0.
Consider the following statements about the Startup India Fund of Funds 2.0 guidelines: 1. Funds will be committed to SEBI-registered Category I and II Alternative Investment Funds, which invest in DPIIT-recognised startups. 2. AIFs will be selected in two stages, ending with evaluation by a Venture Capital Investment Committee. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct: FoF 2.0 commits to SEBI-registered Category I and II AIFs, and selection involves screening by the Implementation Agency followed by a Venture Capital Investment Committee.