Central Government commits Rs 7385 crore for Startup Fund: In 2016, as part of the Startup India initiative, the Government of India aimed to increase funding opportunities for startups in the country. Funding of funds for startups (Fund of Funds for Startups or FFS) scheme was launched.
Now the Ministry of Commerce and Industry of the government has said this in the information given on Monday Fund of Funds for Startups (FFS) 88 till September 24 this year under this scheme Alternative investment funds ,AIFs) has promised to pay 7,385 crores.
Join our Telegram channel to get all such news! 🙁Telegram channel link,
The amount invested in this AIF has grown at a CAGR (compound annual growth rate) of around 21% since its launch and is almost three-quarters of the target of ₹10,000 crore invested in FY2025.
7385 crore for startup fund?
come on Alternative investment funds ,AIFs) includes many big names including Chiratae Ventures, India Quotient, Blume Ventures, IvyCap, Waterbridge, Omnivore, Aavishkaar, JM Financial, Fireside Ventures.
Look at the numbers The AIF has invested ₹11,206 crore in around 720 startups in the last 6 years against commitments made under the Fund of Funds for Startups (FFS).
To recall, the government had announced FFS with a fund of Rs 10,000 crore. The fund is generated during the 14th (FY 2016-2020) and 15th (FY 2021-2025) Finance Commissions through budgetary support by the Department of Industry and Internal Trade Promotion (DPIIT) under the Ministry of Commerce and Industry of the country.
According to the government, Funding of funds for startups ,FFS) initiative is playing a major role in promoting domestic capital investment in the Indian startup ecosystem.
What is Fund of Funds for Startup Scheme?
Under the Fund of Funds for Startups or FFS initiative launched by the central government, SEBI registered Alternative Investment Funds (AIFs) are given capital support and invest in Indian startups.
These Alternative Investment Funds (AIFs) not only participate in early stage startups but also participate in seed funding rounds and other rounds of indigenous startups and fund the startups. Through this, it helps Indian startups raise capital domestically, reducing dependence on foreign capital.
Co-backed by the Fund of Funds for Startups (FFS), these alternative investment funds (AIFs) aim to invest over ₹48,000 crore in the Indian startup ecosystem.
Interestingly, many startups backed under FFS see their valuations grow by more than 10x and some have even achieved unicorn status (with valuations over $1 billion).
Notable startups like Dunzo, CureFit, FreshToHome, Jumbotail, Unacademy, Uniphore, Vogo, Zostel, Zetwerk, etc. have also received financial exposure under the Fund of Funds for Startups (FFS).
It is also worth noting that the funds earned through this scheme will be reinvested in the startup ecosystem of the country.