Boost for startups: Govt will infuse Rs 10,000 cr more into fund of funds

In her  budget presentation on Saturday (February 1, 2025), Finance Minister Nirmala Sitharaman announced a Fund of Funds for Startups to promote entrepreneurship in the Union Budget for 2025 in Parliament.

 

Finance Minister Nirmala Sitharaman has proposed to expand the scope of the Small Industries Development Bank of India (Sidbi) Fund of Funds for Startups (FFS) by allocating an additional Rs 10,000 crore in corpus to the scheme, in a bid to offer funding to startups.With the fresh allocation, the scheme's total outlay would reach a total of Rs 20,000 crore.

 

“The Alternative Investment Funds (AIFs) for startups have received commitments of more than Rs 91,000 crore. These are supported by the fund of funds set up with the government of India’s commitment of Rs 10,000 crore. Now, a new Fund of Funds with expanded scope and a fresh contribution of another Rs 10,000 crore will be set up,” the Finanace Minister said in her budget speech on February 1.

 

 

"Fund of funds will support startups in 27 focus sectors. The government will infuse Rs 10, 000 Cr additional funds into these fund of funds increasing the total allocation to 20,000 Cr, to propel entrepreneurship and growth in startups," said Dhruv Chopra, Managing Partner at Dewan P N Chopra & Co.