Commerce and Industry Minister Piyush Goyal on Tuesday, 19 May chaired a high-level review meeting on the Startup India Fund of Funds 1.0 and 2.0 in New Delhi, examining strategies to deepen India's startup and innovation ecosystem. The deliberations centred on expanding capital access, drawing greater private sector participation, and driving inclusive growth beyond metro cities.

Key Developments from the Review

Discussions at the meeting focused on strengthening support for deep-tech, innovation-driven, and manufacturing startups. A particular emphasis was placed on extending the startup ecosystem's reach to Tier 2 and Tier 3 cities, which have historically received a disproportionately smaller share of venture capital and institutional support.

Minister Goyal, sharing details on X, said the meeting also addressed 'measures to strengthen the startup ecosystem through improved institutional mechanisms, enhanced industry participation, long-term capital and greater focus on strategic sectors critical for India's technological and economic growth.'

India's Startup Numbers at a Record High

The government last month disclosed that it recognised more than 55,200 startups during financial year 2025-26 — the highest single-year count since the Startup India initiative was launched. Cumulatively, India's total recognised startup count has crossed 2.23 lakh as of 31 March 2026, according to the Ministry of Commerce and Industry.

These startups have collectively generated more than 23.36 lakh direct jobs. Notably, over 1.07 lakh of these recognised startups — nearly 48 per cent of the total — have at least one woman director or partner, reflecting a measurable push toward gender-inclusive entrepreneurship.

Fund of Funds: Disbursements and Scale

Under the Fund of Funds for Startups (FFS), more than ₹7,000 crore has been disbursed to over 135 Alternative Investment Funds (AIFs) by the end of FY26. These AIFs have in turn deployed over ₹26,900 crore into more than 1,420 startups, creating a multiplier effect on the original government outlay.

Building on this track record, the government has launched Startup India Fund of Funds 2.0 with a fresh corpus of ₹10,000 crore, signalling a significant scaling-up of the state-backed venture architecture.

Broader Ecosystem Support Mechanisms

The government continues to underpin the startup lifecycle through three flagship schemes: the Fund of Funds for Startups, the Startup India Seed Fund Scheme, and the Credit Guarantee Scheme for Startups. Together, these instruments provide financial scaffolding from ideation through early growth and beyond.

This comes amid a global recalibration of startup funding, with Indian founders increasingly looking to domestic institutional capital as overseas venture flows moderate. The Fund of Funds 2.0 corpus is designed, in part, to fill that gap and reduce dependence on foreign risk capital for early-stage companies.

What Comes Next

With Fund of Funds 2.0 now operational and the review meeting signalling fresh policy attention, the government is expected to outline updated guidelines for AIF eligibility and sector prioritisation in the coming weeks. Industry bodies and deep-tech founders will be watching whether the new corpus translates into faster deployment timelines than its predecessor.