Sarkari Yojana
Fund of Funds for Startups
About Fund of Funds for Startups
To address startup funding needs, the Government of India created the Fund of Funds for Startups (FFS) under the Startup India Programme, with a corpus of ₹10,000 crore. DPIIT serves as the monitoring agency and SIDBI as the operating agency. Under the operating guidelines, FFS contributes to the corpus of SEBI-registered Alternative Investment Funds (AIFs), which in turn must invest at least double the FFS contribution into ‘startups’ as defined under the relevant Government of India gazette notification. FFS aims to give startups equity support and encourage innovation and entrepreneurship, targeting DPIIT-recognized startups working in technology, research, and innovation across sectors. Its multiplier effect — AIFs investing at least twice SIDBI’s contribution — channels more funds into the ecosystem. Benefits include access to patient capital, mentorship, and industry networks, and the scheme lends startups credibility that helps them attract follow-on investment. With its ₹10,000 crore initial corpus, FFS has already supported thousands of startups and fostered innovation, playing a key role in building a strong venture capital market and driving India’s economic growth through entrepreneurship.
Scheme Overview
Central Government
Ministry Of Commerce And Industry
SIDBI
Business Entity
16 Jan 2016
Scheme Details
Eligibility Requirements
To qualify for Fund of Funds for Startups, applicants must satisfy the following conditions:
FFS support goes to AIFs. Key eligibility criteria for seeking an FFS contribution:
The fund must be registered — or have…
The fund must be registered — or have applied to register — as a Category I or II Alternative Investment Fund (AIF) with SEBI.
The fund's corpus must be under ₹1,000 crore
The fund's corpus must be under ₹1,000 crore.
The fund's investment strategy must include investing in…
The fund's investment strategy must include investing in startups (as defined under Gazette Notification G.S.R.127(E) dated 19/02/2019, and any amendments).
The fund must commit to investing at least…
The fund must commit to investing at least twice the FFS contribution sought into startups (e.g., a ₹100 crore FFS contribution requires at least ₹200 crore invested in startups).
The Fund Manager/team must have a prior track…
The Fund Manager/team must have a prior track record in fund management or investment; every Key Member of the fund must have a CIBIL score above 650 (Key Member meaning the fund's Director, Sponsor, and Senior Personnel).
Every Key Member must be legally eligible to…
Every Key Member must be legally eligible to serve as a Director or in a managerial position under Indian law.
The startup must be no more than 10…
The startup must be no more than 10 years old from incorporation.
The startup must be DPIIT-recognized
The startup must be DPIIT-recognized.
The startup must be working on innovating, developing,…
The startup must be working on innovating, developing, or improving products, processes, or services.
Funding flows indirectly, through SEBI-registered AIFs backed by…
Funding flows indirectly, through SEBI-registered AIFs backed by SIDBI.
Benefits Provided
Fund of Funds for Startups provides the following benefits to eligible applicants:
Equity or equity-linked funding for startups
Equity or equity-linked funding for startups.
Mentorship from experienced AIF managers, plus market connections…
Mentorship from experienced AIF managers, plus market connections and governance support.
Capital mobilisation, drawing in private investors and larger…
Capital mobilisation, drawing in private investors and larger capital pools for startups.
Support for innovation-driven enterprises, boosting job creation and…
Support for innovation-driven enterprises, boosting job creation and economic growth.
A stronger Indian venture capital ecosystem and greater…
A stronger Indian venture capital ecosystem and greater entrepreneurship.
A built-in multiplier effect — AIFs must invest…
A built-in multiplier effect — AIFs must invest at least twice SIDBI's contribution — which has helped mobilise more than ₹90,000 crore through AIFs.
Documents Required
Applicants should keep the following documents ready before starting the application:
AIF registration certificate
AIF registration certificate.
Investment Management (IM) Agreement
Investment Management (IM) Agreement.
Past track record, if any
Past track record, if any.
Private Placement Memorandum (PPM)
Private Placement Memorandum (PPM).
AIF and fund financials
AIF and fund financials.
Trust Deed
Trust Deed.
Contributor details
Contributor details.
Startup certificate
Startup certificate.
KYC documents (Aadhaar card, PAN card for individual…
KYC documents (Aadhaar card, PAN card for individual and company, financials, CIBIL score). Startups should check the concerned AIF's website for further details.
2016-01-16
How to Apply
Online Application
Applicants can apply for Fund of Funds for Startups through the online application process outlined below.
Eligibility Screener and Registration An initial check confirms…
Eligibility Screener and Registration An initial check confirms the applicant meets basic eligibility, followed by portal registration.
Preliminary Questionnaire Key details about the fund, its…
Preliminary Questionnaire Key details about the fund, its strategy, and compliance are gathered for initial assessment.
Feedback, Go / No-Go The questionnaire feeds into…
Feedback, Go / No-Go The questionnaire feeds into a decision on whether the proposal advances, based on this preliminary review.
First Meeting An introductory discussion covers the fund's…
First Meeting An introductory discussion covers the fund's objectives, structure, and fit with FFS goals.
Detailed Application Comprehensive documents are submitted, covering fund…
Detailed Application Comprehensive documents are submitted, covering fund strategy, team credentials, and compliance.
Due Diligence Completed The fund's strategy, manager experience,…
Due Diligence Completed The fund's strategy, manager experience, governance, and operations undergo detailed evaluation.
Second Meeting, Feedback & Terms Discussion Due-diligence findings…
Second Meeting, Feedback & Terms Discussion Due-diligence findings and key terms & conditions are discussed.
VCIC Appraisal Memo Submission A Venture Capital Investment…
VCIC Appraisal Memo Submission A Venture Capital Investment Committee (VCIC) appraisal memo is prepared and submitted, summarising the evaluation and recommendations.
Present to VCIC Investment Committee The proposal is…
Present to VCIC Investment Committee The proposal is formally presented to the VCIC for approval and strategic-fit review.
SIDBI's Executive Committee SIDBI's Executive Committee conducts a…
SIDBI's Executive Committee SIDBI's Executive Committee conducts a final review and sanctions the investment.
Final Feedback, Post IC & EC, Issue of…
Final Feedback, Post IC & EC, Issue of LOI The decision is communicated and a Letter of Intent (LoI) issued to the selected fund.
Agreements Finalisation Legal agreements are drafted and signed…
Agreements Finalisation Legal agreements are drafted and signed to formalise the investment commitment.
Onboarded for the Fund Lifecycle Onboarding is completed,…
Onboarded for the Fund Lifecycle Onboarding is completed, with monitoring continuing across the fund's lifecycle.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.