Fund of Funds for Startups
Fund of Funds for Startups (FFS) under Startup India
Government-backed Fund of Funds with a corpus of around ₹10,000 crore, managed by SIDBI, which invests in SEBI-registered Alternative Investment Funds (AIFs) that, in turn, invest equity and equity-linked capital into Indian startups.
Who Can Apply?
For AIFs (Daughter Funds)
SEBI-registered Category I or II AIFs with a corpus typically below a specified ceiling, strong management team and clear startup-focused investment strategy.
For Startups (Indirect Beneficiaries)
DPIIT-recognised startups that meet the investment thesis of FFS-supported AIFs in terms of stage, sector and scalability.
Innovation & Scalability
Startups should be innovation-driven with potential for scalable business, employment generation and value creation.
Indian Entity
Startups must be incorporated in India as a private limited company or other permitted structure under Startup India guidelines.
No Direct Application to FFS
Startups cannot apply directly to FFS or SIDBI; they must approach the individual AIFs backed by FFS for investment.
Compliance & Governance
Both AIFs and startups must follow applicable SEBI, Companies Act, tax and regulatory compliances for equity investments.
Key Features
Fund of Funds Structure
Government capital is pooled at the top level and invested into multiple SEBI-registered AIFs rather than directly into startups.
Multiplier Effect
Each rupee committed by FFS requires AIFs to invest at least twice that amount in eligible startups, crowding in private capital.
Professional Fund Managers
Investments into startups are made by experienced VC/PE fund managers with sector expertise and governance standards.
Pan-India Startup Coverage
Backs funds that invest across sectors, stages and geographies, including tier‑2 and tier‑3 startup hubs.
Supports High-Growth Startups
Designed to fuel innovation-driven, high‑potential startups that require equity capital for rapid scaling.
Evergreen Ecosystem Impact
Returns from successful exits strengthen the ecosystem and demonstrate viability of domestic venture capital.
Scheme Benefits
Application Process
For Startups – Get DPIIT Recognition
Register on the Startup India portal, obtain DPIIT startup recognition and keep statutory compliances and financials in order.
Identify FFS-Supported AIFs
Map venture capital and private equity funds that have received commitments from FFS and that match your stage and sector.
Pitch to AIFs
Approach relevant funds with your pitch deck, traction metrics and funding requirement; follow their diligence and investment process.
Investment & Scale-Up
On selection, negotiate term sheets and receive equity/equity-linked capital from the AIF; use it for product, team and market expansion.
Documents Required
Frequently Asked Questions
Does the Fund of Funds invest directly into startups?
No. The Fund of Funds provides capital only to SEBI-registered AIFs; those AIFs then invest directly into startups.
How big is the Fund of Funds corpus?
The core corpus is around ₹10,000 crore, with actual deployed and committed amounts spread across many AIFs over multiple years.
What type of funding do startups receive?
Startups receive equity or equity-linked investments (such as CCPS, CCDs, or similar instruments) from the AIFs backed by FFS.
How can my startup benefit from the scheme?
By becoming DPIIT-recognised and then raising funding from an AIF that has received commitments from the Fund of Funds.
Is there any interest subsidy or guarantee under FFS?
No. FFS is an equity-focused initiative; it does not provide interest subsidy or credit guarantee, which are covered by other schemes.
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