Lok Sabha Question No. 348 (STARRED), answered on 2026-03-17
Subject: Startup India Fund of Funds 2.0
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad

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

## LOK SABHA

STARRED QUESTION NO. 348.

TO BE ANSWERED ON TUESDAY, THE 17 TH  MARCH, 2026.

## STARTUP INDIA FUND OF FUNDS 2.0

## *348.  PROF. VARSHA EKNATH GAIKWAD: SHRI SANJAY DINA PATIL:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government is aware that Rs. 10,000 crore Startup India Fund of Funds  2.0  has  been  announced  to  mobilise  venture  capital  for  deep-tech, technology-driven  manufacturing  and  early-growth  startups  and  the  role envisaged  for Mumbai  as  a  national startup and  financial hub  in its implementation;
- (b) the details and number of startups from Mumbai and Maharashtra that have received or are proposed to receive support under the Fund, sector-wise;
- (c) whether the Government has taken any steps to leverage Mumbai's financial ecosystem, incubators and accelerators to expand access to venture capital for startups across Maharashtra;
- (d) the measures being taken by the Government to extend mentoring, handholding  and  investor  outreach  from  Mumbai  to  startups  in  non-metro districts; and
- (e) the future  roadmap to strengthen Mumbai's role as a gateway for inclusive, regionally balanced startup financing in Maharashtra?

## ANSWER वाणिज्य  एवं उद्योग मंत्री  (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL)

(a) to (e): A  Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF THE LOK SABHA STARRED QUESTION NO. 348 FOR ANSWER ON 17.03.2026

- (a): The Union Cabinet has recently approved the establishment of the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of Rs. 10,000 crore. The Scheme is designed to accelerate the next phase of India's startup journey by  mobilising  long-term  domestic  capital,  strengthening  the  venture  capital ecosystem, and supporting innovation across the country.

The new fund will adopt a targeted and segmented funding approach, with a focus on  deep-tech,  technology-driven  innovative  manufacturing,  and  early-growth innovative  ideas,  thereby  catalysing  venture  capital  investments  in  emerging sectors across India, including Maharashtra. Cities with established financial and venture capital ecosystems, such as Mumbai, play an important role in facilitating the  mobilisation  of  venture  capital  and  strengthening  the  broader  startup investment ecosystem.

The Scheme builds upon the experience and performance of the Fund of Funds for  Startups  Scheme  (FFS  1.0)  implemented  under  the  Startup  India  initiative. Under FFS 1.0, the Government provides capital to SEBI-registered Alternative Investment Funds (AIFs) through the Small Industries Development Bank of India (SIDBI), which in turn invests in startups across sectors and stages.

As  on  31 st   January  2026,  Rs.  6,801.95  crore  has  been  committed  to  80  AIFs supported under the Scheme from the State of Maharashtra. This includes 78 AIFs from the city of Mumbai that have been committed with Rs. 6,756.95 crore under the Scheme.

- (b): In the State of Maharashtra, supported AIFs under the FFS 1.0 have invested Rs. 6,025.25 crore in 276 startups as on 31 st  January 2026. Particularly in Mumbai city, Rs. 4,697.3 crore has been invested in 231 startups by AIFs supported under the Scheme. The sector-wise details of startups supported by AIFs under the FFS, in Mumbai city are placed as Annexure-I .

In addition to FFS, recognised startups from Mumbai have availed funding and incubation support through other flagship funding schemes under the Startup India initiative  viz.  Startup  India  Seed  Fund  Scheme  (SISFS)  and  Credit  Guarantee Scheme for Startups (CGSS).

Under the SISFS, supported incubators have approved Rs. 27.56 crore to 152 startups  from  Mumbai  and  Mumbai  Suburban  districts.  Under  the  Credit Guarantee  Scheme  for  Startups  (CGSS),  in  Mumbai  and  Mumbai  Suburban districts, 11 loans amounting to Rs. 42.9 crore have been guaranteed to startup borrowers.

- (c) to (e): Under  the  Startup  India  initiative,  the  Government  unveiled  an  action  plan  for startups  comprising  of  schemes  and  incentives  envisaged  to  create  a  vibrant startup ecosystem in the country. The Action Plan comprises of 19 action items spanning  across  areas  such  as  'Simplification  and  handholding',  'Funding support and incentives' and 'Industry-academia partnership and incubation'. The  Government also  implements periodic exercises and  programs including States' Startup Ranking, National Startup Awards, and Innovation Week which play an important role in the holistic development of the startup ecosystem. The

Government  also  encourages  and  supports  ecosystem-led  initiatives  such  as Startup  Mahakumbh  which  serves  as  a  vibrant  platform  for  stakeholders  to network and collaborate. Initiatives to improve market access and enable public procurement support startups in growing and scaling up their businesses. These measures  are  complemented  by  regulatory  reforms  and  other  ecosystem development events and programs. Specific measures undertaken to promote the startup ecosystem across States/Union Territories (UTs), including in Mumbai and non-metro districts in Maharashtra are placed as Annexure-II .

Further,  specifically  in  the  State  of  Maharashtra,  36,782  entities  have  been recognized as startups by the Government with a recognised startup emerging from  every  district  of  the  State.  Specifically  in  Mumbai  and  Mumbai  Suburban districts,  11,789  entities  have  been  recognized  as  startups as  on 31 st   January 2026.

As on 31 st  January 2026, supported AIFs under the FFS Scheme have invested Rs. 6,025.25 crore in 276 startups from the State of Maharashtra, including nonmetro cities such as Bhiwandi.

As on 31 st  January 2026, supported incubators under SISFS have approved Rs. 105.06  crore  to  559  startups  from  the  State  of  Maharashtra  including  nonmetro  districts  such  as  Amravati,  Buldhana,  Hingoli,  Kolhapur,  Sangli,  and Solapur.

Additionally, under the CGSS, as on 31 st  January 2026, 78 loans amounting to Rs.  187.6 crore has been guaranteed to startups from the State of Maharashtra including non-metro districts such as Ahilyanagar, Akola, Palghar, and Yavatmal.

## Support to the startup ecosystem in Maharashtra through the Government of Maharashtra

The  Government  of  Maharashtra  has  introduced  the  Maharashtra  Startup, Entrepreneurship and Innovation Policy 2025, which provides a framework for expanding funding access, infrastructure and ecosystem support for startups in the State. The policy includes provisions for financial assistance and ecosystem development to strengthen the startup landscape across Maharashtra.

The State has also instituted funding mechanisms such as the Maharashtra Fund of Funds in partnership with SIDBI, supporting professionally managed venture funds  that  invest  in  startups  across  the  State.  Additionally,  the  Maharashtra Innovation and Technological Development Fund (MITDF) provides a dedicated venture funding mechanism for early-stage and growth capital.

Complementary  ecosystem  initiatives include the establishment of microincubators in ITIs, polytechnics and colleges, development of regional innovation and entrepreneurship hubs, strengthening of district innovation committees and funds,  and  programmes  such  as  Startup  Yatra,  innovation  challenges  and hackathons,  along  with  a  statewide  mentor  network  and  digital  knowledge platform connecting startups with investors, experts and institutions.

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## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA STARRED QUESTION NO. 348 FOR ANSWER ON 17.03.2026.

Sector-wise details of startups selected in Mumbai city by AIFs under the FFS as on 31 st January 2026 are as follows:

| Sector                             |   No. of startups selected by AIFs |   Amount invested by AIFs (in Rs. crore) |
|------------------------------------|------------------------------------|------------------------------------------|
| Advertising/Media/Entertainment    |                                  9 |                                    41.23 |
| Agriculture/Agritech               |                                  3 |                                    51.5  |
| Artificial Intelligence / Robotics |                                  5 |                                   243.95 |
| Automotive                         |                                  3 |                                    55.72 |
| BioTechnology                      |                                  2 |                                    15.49 |
| Business Product and Services      |                                 13 |                                   313    |
| Clean Tech/ Clean Energy           |                                  4 |                                    88.34 |
| Consumer Goods & Services          |                                 20 |                                   274.51 |
| E-Commerce                         |                                 11 |                                   215.44 |
| Education/Edtech                   |                                 15 |                                   148.92 |
| Financial Services/Fintech         |                                 31 |                                   867.14 |
| Food & Beverages                   |                                 10 |                                   118.6  |
| Healthcare/Health-tech             |                                 31 |                                   851.82 |
| IT & ITES                          |                                 45 |                                   488.11 |
| Logistics/Transport                |                                 11 |                                   292.46 |
| Manufacturing                      |                                 14 |                                   464.23 |
| Others                             |                                  1 |                                    34.5  |
| Travel and Tourism                 |                                  3 |                                   132.33 |
| Total                              |                                231 |                                  4697.3  |

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (c) to (e) OF THE LOK SABHA STARRED QUESTION NO. 348 FOR ANSWER ON 17.03.2026.

The details of various measures being undertaken to promote the startup ecosystem are as follows:

## 1.  Capacity Building and Handholding

Capacity  building  workshops  are  undertaken  throughout  the  year  across  regions including nonmetro cities under the States' Startup Ranking ('SRF') exercise to promote and handhold States and UTs in developing regional ecosystems. Monitoring, capacity development, and handholding sessions are also conducted specifically for incubators beyond  metro  cities  and  regions.  Various  other  startup  workshops  and  demos  are organized  to  handhold  startups  to  access  the  flagship  schemes  and  challenges launched under Startup India.

## 2.  Outreach and Awareness

Outreach  and  awareness  activities  for  startups  are  organized  across  the  country including  in  areas  beyond  metropolitan  cities.  These  activities  include  encouraging entrepreneurs  from  non-metropolitan  cities  and  enabling  opportunities  for  funding, incubation, mentorship and business linkages in collaboration with State/UT administrations. Various startup showcases are also organised where startups pitch their business proposals to investors and participate in capacity building activities. The programs implemented under the Startup India initiative are also propagated through various social media platforms.

## 3.  Ecosystem Development Events and Programs

Various national ecosystem development events and programs are held such as the Startup Mahakumbh, which fosters innovation and entrepreneurship by bringing the ecosystem together from various parts of the country; the Startup India Innovation week is held around the National Startup Day i.e., 16th January, to celebrate entrepreneurship  and  promote  innovation  with  stakeholders  from  across  India.  The Startup India Yatra initiative was also launched with an aim to reach Tier 2 and Tier 3 cities  of  India  to  search  for  entrepreneurial  talent  and  help  develop  the  startup ecosystem. It was conducted across 16 districts in Maharashtra, reaching approximately  5,000  individuals  and  offering  incubation  support  to  100  aspiring entrepreneurs.

## 4.  International Exposure and Linkages

The Startup20 Engagement Group was institutionalised under India's G20 Presidency to facilitate  harmonisation  and  cross  collaboration  amongst  the  largest global economies. The meetings and engagements of Startup20 Engagement Group under India's G20 Presidency were held across the country providing access to global market, visibility and resources of India's regionals startup ecosystems. International linkages are further developed through international Government to Government partnerships, participation in international forums, hosting of global events, and international bridges with different countries that aid in promoting cross collaboration. The launch of IndiaFrance Year of Innovation  2026, held on 17 February 2026 in Mumbai, marked an important step in strengthening bilateral collaboration in innovation, startups, research, and advanced technologies between the two countries.

## 5.  Encouraging Ecosystem Collaboration

The  Government  launched  the  Startup  India  Hub  portal  for  stakeholders  of  the entrepreneurial  ecosystem  in  India  to  discover  resources,  information,  and  various benefits  under the  Startup  India  initiative  on  a  common  digital  platform.  This  portal enables various programs and initiatives to be accessed digitally, improving accessibility for entrepreneurs and startups even from nonmetro cities and regions.

6. Various other programs and initiatives are also undertaken by the Government such as GENESIS  (Gen-Next  Support  for Innovative Startups) Scheme,  TIDE  2.0 (Technology Incubation and Development of Entrepreneurs) Scheme, Chips to Startup  (C2S)  Programme,  Design  Linked  Incentive  (DLI)  Scheme,  Entrepreneurship Development Programmes (EDPs) and Entrepreneurship Skill Development Programmes (ESDPs), Scheme for Innovations for Defence Excellence (iDEX) and Acing Development  of Innovative Technologies with iDEX  (ADITI), Research, Development, and  Innovation  (RDI)  Scheme,  National  Initiative  for  Developing  and Harnessing  Innovations  (NIDHI),  and  Biotechnology  Industry  Research  Assistance Council (BIRAC) schemes.

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