Fund of Funds expected to benefit over 161K startups

We believe the increased financial support from govt alongside efforts to reduce capital constraints will further accelerate growth of startups. ARCHANA JAHAGIRDAR, founder of Rukam Capital

- Vishal Mathur

NEW DELHI: The aim of the 2025-26 Union Budget to provide a decisive push for startups in the country was clear on Saturday when finance minister Nirmala Sitharaman outlined several measures to help bolster and expand the startup ecosystem. The key announcement was that of another FFS, or Fund of Funds for startups, with a fresh government contribution of ₹10,000 crore. The government expects this to benefit the 161,225 startups recognised by the Department for Promotion of Industry and Internal Trade, or DPIIT.

"The Alternate Investment Funds (AIFs) for startups have received commitments of more than ₹91,000 crore. These are supported by the Fund of Funds set up with a government contribution of ₹10,000 crore. Now, a new Fund of Funds, with expanded scope and a fresh contribution of another ₹10,000 crore, will be set up," Sitharaman said during her speech in Parliament.