Lok Sabha Question No. 1403 (UNSTARRED), answered on 2025-07-29
Subject: Funds for Startups
Ministry: COMMERCE AND INDUSTRY
Asked by: Smt. Sangeeta Kumari Singh Deo

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1403. TO BE ANSWERED ON TUESDAY, THE 29 TH  JULY, 2025.

## FUNDS FOR STARTUPS

## 1403.  SMT. SANGEETA KUMARI SINGH DEO:

Will the Minister of COMMERCE AND INDUSTRY

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has taken cognizance of the underutilisation of the Funds for Startups (FFS), with only Rs. 4,552 crore disbursed out of Rs. 10,229 crore committed as  of  early  2024  and  if  so,  the  reasons  for  the  disbursement  lag  despite  a  growing demand for capital support;
- (b) whether geographical distribution data is maintained to address regional disparities in startup funding, if so, the details thereof along with the number of startups from Odisha supported under the FFS scheme till date;
- (c) whether  any  assessments  have  been  conducted  on  the  barriers  to  e-commerce adoption among MSMEs in States like Odisha, especially in districts such as Khordha and if so, the details thereof; and
- (d) the steps taken to enhance digital infrastructure, provide training and improve logistics support to enable wider e-commerce participation by MSMEs in Odisha and similarly placed regions?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): Under the Startup India initiative, the Fund of Funds for Startups (FFS), has been established to catalyze venture capital investments for startups. It is operationalized by Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of  India  (SEBI)-registered  Alternative  Investment  Funds  (AIFs)  which  in  turn  invest  in startups.

AIFs  are  pooled  investment  vehicles  which  raise  funds  from  investors/  contributors  and invest,  inter-alia,  in  securities  of  unlisted  companies such  as  startups.  As  per  SEBI regulations, the AIFs indicate at the initial stage details such as the term of the AIF including period of fund raise, and the period for which investments will be made. In general, the life of an AIF is about 10 years with provision for extension by

2 years. The initial 5-6 years of the AIF's term/ life is earmarked for raising capital/commitments from other sources and thereon making investments.

AIFs evaluate startups for investments and once the investment is approved and agreements are executed, the investment by AIFs in startups takes place in tranches, over a period. Accordingly, AIFs also draw amount from contributors be pleased to state:

including  FFS  in  tranches  over  a  period  for  making  investments .  Thereafter,  the assisted investee companies of AIFs are mentored, nurtured and matured before exit/sale of investments.

Therefore,  while  the  commitment  is  made  up  front  to  an  AIF  under  FFS,  the  drawdown happens  based  upon  demand/investments  by  the  AIFs  over  the  period  when  it  makes investments in startups in tranches.

As on 30 th  June 2025, net commitments of Rs. 9,994 crore have been made to AIFs under the Scheme. Of these commitments, Rs. 6,221 crore has been disbursed.

- (b) : The Government maintains State/UT-wise data of startups supported by selected AIFs under FFS and the same is placed as Annexure-I . Specifically from the State of Odisha, AIFs under FFS have supported 7 startups with an investment of about Rs. 35 crore as on 30 th  June 2025.

FFS is also playing a key role in addressing funding requirements for startups across the country, including in regions beyond metros. For instance, AIFs from Guwahati and Jaipur, and startups from Agartala, Jorhat, Patna, Puducherry, Palakkad, Shivpuri, amongst others are being supported under the Scheme. Specifically from the State of Odisha, startups from Cuttack, Khorda, Rourkela, and Ganjam are being supported under the Scheme.

Various capacity building and  handholding, outreach and  awareness  activities are undertaken across the country to promote uptake of the FFS. For instance, online pitching sessions, venture capital fundraising and mentorship workshops, panel discussions, as well as  bootcamps  have  been  held  in  locations  such  as  Bhubaneswar,  Guwahati,  Shillong, Coimbatore, Jaipur, Kanpur, Surat, Ranchi, Patna, Lucknow, Roorkee, Indore, Ahmedabad, Jammu, etc. Further, FFS has been supporting first-time fund managers and encouraging them to identify startups from non-metro locations for support.

- (c) &(d) : Recognising the need to promote e-commerce adoption among MSMEs, the Government has taken various measures such as enhancing digital infrastructure,   providing training and improving logistics across the country, including in the State of Odisha. The details of the initiatives are placed as Annexure-II.

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## ANNEXURE-I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  THE  LOK  SABHA  UNSTARRED QUESTION NO. 1403 FOR ANSWER ON 29.07.2025.

## State/UT-wise details of startups supported by selected AIFs under FFS:

| State/UT          | No. of Startups selected by AIFs   | Amount Invested (in Rs. Crore)   |
|-------------------|------------------------------------|----------------------------------|
| Karnataka         | 396                                | 7,348                            |
| Maharashtra       | 265                                | 5,606                            |
| Delhi             | 203                                | 3,689                            |
| Haryana           | 102                                | 2,056                            |
| Tamil Nadu        | 57                                 | 1,336                            |
| Gujarat           | 29                                 | 721                              |
| Uttar Pradesh     | 46                                 | 659                              |
| Telangana         | 37                                 | 600                              |
| Rajasthan         | 27                                 | 365                              |
| Kerala            | 21                                 | 321                              |
| Madhya Pradesh    | 17                                 | 175                              |
| Bihar             | 4                                  | 163                              |
| West Bengal       | 15                                 | 140                              |
| Goa               | 2                                  | 124                              |
| Punjab            | 3                                  | 87                               |
| Chhattisgarh      | 3                                  | 54                               |
| Jammu & Kashmir   | 1                                  | 50                               |
| Assam             | 21                                 | 41                               |
| Andhra Pradesh    | 2                                  | 36                               |
| Odisha            | 7                                  | 35                               |
| Jharkhand         | 1                                  | 31                               |
| Chandigarh        | 3                                  | 17                               |
| Uttarakhand       | 3                                  | 8                                |
| Manipur           | 6                                  | 6                                |
| Puducherry        | 2                                  | 6                                |
| Arunachal Pradesh | 2                                  | 1                                |
| Meghalaya         | 3                                  | 1                                |
| Tripura           | 2                                  | 1                                |
| Nagaland          | 2                                  | 1                                |
| Total             | 1,282                              | 23,679                           |

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (c) & (d)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 1403 FOR ANSWER ON 29.07.2025.

The Government launched the Open Network for Digital Commerce (ONDC) with the aim to promote open networks for all aspects of the exchange of goods and services over digital or electronic networks.

Various  measures  are  being  undertaken  by  the  Government  across  Ministries  and Departments to enable market access for small businesses under a whole-of-government approach to open commerce across the country, including the State of Odisha. These are as follows:

- i. The Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  has  launched  Trade Enablement and Marketing (TEAM) scheme, which aims at facilitating micro and small enterprises  for  onboarding  onto  ONDC  by  providing  financial  assistance  to  Seller Network  participants  (SNPs)  for  onboarding,  cataloguing,  account  management, logistics, packaging material and design.
- ii. eSaras.in, the e-commerce platform under National Rural Livelihood Mission (NRLM) of Ministry of Rural Development, is live on ONDC - with operations through a central warehouse  in  Delhi-NCR.  e-Saras  is  integrated  with  ONDC  with  around  800+ handcrafted products made by Self Help Groups (SHGs) now available online. Further, the HimIra brand, under Himachal Pradesh State Rural Livelihood Mission (HP SRLM), is also live on the network, showcasing rural and SHGs products nationwide.
- iii. The Ministry of Agriculture and Small Farmers Agribusiness Consortium (SFAC) are driving onboarding of Farmer Producer Organisations (FPOs) onto the ONDC network. Currently, over 7000 FPOs are live on the ONDC network. Additionally, the electronic National Agriculture Market (eNAM) is being integrated to ONDC in a phased manner to connect FPOs and small farmers to a broader digital marketplace.

ONDC is also conducting targeted training programs, workshops, and digital literacy programs, helping  sellers  acquire  the  necessary  skills  to  succeed  online.  The  Digital  Readiness Assessment  Tool,  developed  with  the  Quality  Council  of  India  (QCI),  helps  assess  and enhance the digital capabilities of MSMEs, to prepare them for sustainable digital commerce participation.

As per inputs from Ministry of Electronics and Information Technology (MeitY), to enhance Digital infrastructure, Government has developed several digital platforms such as Aadhaar, DigiLocker, Unified Payment Interface, Unified Mobile Application for New-age Governance (UMANG), e-Sign, e-Hospital, e-Sanjeevani, Myscheme, Aarogya Setu, etc.

Further, the Government has taken various steps to address the issue of high logistics costs and improve infrastructure such as:

- i. PM (Pradhan Mantri) Gati Shakti National Master Plan enabling comprehensive and integrated planning for multimodal logistics.
- ii. National Logistics Policy (NLP), which aims to drive economic growth and business competitiveness of the country through cost-effective logistics network.
- iii. National Industrial Corridor Development Programme to create quality infrastructure

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