DPIIT Finalises 15 Funds Under Startup India Fund of Funds 2.0 — Startup Funding India, October 2026

Startup funding in India got a fresh public-capital signal on 30 October 2026. India's Department for Promotion of Industry and Internal Trade (DPIIT) has finalised 15 Alternative Investment Funds (AIFs) under its Startup India Fund of Funds (FoF) 2.0 scheme, with US$36.7 million earmarked for the Small Industries Development Bank of India (SIDBI), according to Dealroom's 30 October 2026 report, which cites CNBC-TV18.

How FoF 2.0 works

SIDBI, the scheme's initial implementation agency, will commit capital to SEBI-registered Category I and Category II AIFs, which then invest in DPIIT-recognised startups. The government does not invest in individual startups directly. Instead, FoF 2.0 is designed as a catalyst for private investment: eligible funds fall into four buckets — deep tech, micro venture capital for early-growth startups, technology-led manufacturing, and funds with no sector or stage restriction.

Who decides, and what happens next

A two-stage process screens proposals, with a Venture Capital Investment Committee assessing fund managers on track record, capabilities and strategy. The committee includes Vallabh Bhansali, Ashok Jhunjhunwala, Renu Swarup, Chintan Vaishnav and Rajesh Gopinathan. Dealroom cautions that the 15-fund selection is an early step and the US$36.7 million is an initial deployment, not startup funding itself — the impact depends on how quickly commitments turn into private fundraising and actual investments.

A wider institutional signal

The report also notes that the Employees' Provident Fund Organisation is weighing a proposal to channel up to 3% of its annual accretions into Category I and II AIFs, including SIDBI's FoF 2.0. For founders, the practical point is indirect but real: more fund-of-funds capital behind early and deeptech funds should, over time, mean more first cheques for DPIIT-recognised startups in those buckets.