DPIIT Issues Guidelines for Startup India FoF 2.0

On 25th April 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) released operational guidelines for the ₹10,000 crore Startup India Fund of Funds 2.0.

Key Points

The scheme aims to streamline capital deployment and strengthen India’s startup ecosystem.
The fund will be deployed through SEBI-registered Category I and II Alternative Investment Funds (AIFs).
Small Industries Development Bank of India (SIDBI) will serve as the initial implementation agency.
DPIIT will also onboard an additional agency to expand institutional capacity and sectoral reach.
The scheme focuses on deep tech, micro venture capital, manufacturing innovation, and broader startup funding.
It follows a two-stage AIF selection process involving screening and Venture Capital Investment Committee evaluation.
The fund is designed as a catalytic mechanism to mobilise private capital rather than direct government investment.
Minimum private capital mobilisation norms are included to ensure market discipline.
A portion of returns may support mentorship, shared infrastructure, and ecosystem development.
The Department for Promotion of Industry and Internal Trade (DPIIT) is a central government department under the Ministry of Commerce and Industry in India.
It is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives.