What is the Fund of Funds for Startups (FFS) announced in Budget 2025?

The Fund of Funds for Startups (FFS) is a ₹10,000 crore initiative announced by Finance Minister Nirmala Sitharaman to support Indian startups. Managed by DPIIT and SIDBI, this fund aims to provide financial assistance across various stages—from seed to growth—to strengthen India's startup ecosystem.

What is the Fund of Funds for Startups (FFS) announced in Budget 2025?

The Fund of Funds for Startups (FFS) is a ₹10,000 crore initiative announced by Finance Minister Nirmala Sitharaman to support Indian startups. Managed by DPIIT and SIDBI, this fund aims to provide financial assistance across various stages—from seed to growth—to strengthen India's startup ecosystem.

How does the FFS help Indian startups grow?

The FFS provides crucial capital to startups in their early and expansion stages. By supporting domestic venture capital funds, it ensures that startups can access funding without relying heavily on foreign investments, helping them scale and innovate faster.

How does the FFS help Indian startups grow?

The FFS provides crucial capital to startups in their early and expansion stages. By supporting domestic venture capital funds, it ensures that startups can access funding without relying heavily on foreign investments, helping them scale and innovate faster.

Who will manage and implement the FFS?

The Department for Promotion of Industry and Internal Trade (DPIIT), in partnership with SIDBI (Small Industries Development Bank of India), will manage and monitor the disbursal and implementation of the ₹10,000 crore startup fund.

Why is this fund important for India's startup ecosystem?

This fund is vital because it boosts internal capital generation, reduces foreign dependency, and enhances investor confidence in Indian startups. It also plays a key role in positioning India as a global hub for innovation and entrepreneurship.

What is the broader impact of Startup India since 2016?

Since its launch, the Startup India initiative has led to the recognition of over 1.5 lakh startups, increased domestic investment, and removed policy hurdles. It continues to support innovation, job creation, and economic development across the country.

Who will manage and implement the FFS?

The Department for Promotion of Industry and Internal Trade (DPIIT), in partnership with SIDBI (Small Industries Development Bank of India), will manage and monitor the disbursal and implementation of the ₹10,000 crore startup fund.

Why is this fund important for India's startup ecosystem?

This fund is vital because it boosts internal capital generation, reduces foreign dependency, and enhances investor confidence in Indian startups. It also plays a key role in positioning India as a global hub for innovation and entrepreneurship.

What is the broader impact of Startup India since 2016?

Since its launch, the Startup India initiative has led to the recognition of over 1.5 lakh startups, increased domestic investment, and removed policy hurdles. It continues to support innovation, job creation, and economic development across the country.

Why is this fund important for India's startup ecosystem?

This fund is vital because it boosts internal capital generation, reduces foreign dependency, and enhances investor confidence in Indian startups. It also plays a key role in positioning India as a global hub for innovation and entrepreneurship.

Why is this fund important for India's startup ecosystem?

This fund is vital because it boosts internal capital generation, reduces foreign dependency, and enhances investor confidence in Indian startups. It also plays a key role in positioning India as a global hub for innovation and entrepreneurship.

What is the broader impact of Startup India since 2016?

Since its launch, the Startup India initiative has led to the recognition of over 1.5 lakh startups, increased domestic investment, and removed policy hurdles. It continues to support innovation, job creation, and economic development across the country.

What is the broader impact of Startup India since 2016?

Since its launch, the Startup India initiative has led to the recognition of over 1.5 lakh startups, increased domestic investment, and removed policy hurdles. It continues to support innovation, job creation, and economic development across the country.

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Budget 2025: Govt Announces ₹10,000 Crore Fund To Boost Startups

Alankar Mishra

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Updated: 14-07-2025 at 12:34 PM

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Indian Union Budget 2025 includes a Fund of Funds for Startups (FFS) which amounts to ₹10,000 crore. The initiative, announced by Minister Nirmala Sitharaman, marks a paradigm shift towards innovation and entrepreneurship within India, strengthening the startup ecosystem in the country. This fund is expected to assist in all phases of a startup’s lifecycle from early to seed to expansion. The government has already recognised over 150,000 startups which showcases India as a major player in the world of startups.

Key Highlights

Feature	Details
Fund Name	Fund of Funds for Startups (FFS)
Announced By	Finance Minister Nirmala Sitharaman
Total Fund Corpus	₹10,000 crore
Managing Body	DPIIT & SIDBI
Startup Support	Early-stage, seed, and growth-stage startups
Objective	Boost domestic capital and reduce foreign dependence

Encouraging Startup Growth

The FFS scheme was launched in 2016 and has been instrumental in aiding the funding of Indian startups. The fresh ₹10,000 crore corpus will increase capital supply and encourage Indian venture capital funds.

The increased participation of local investors in these start-ups will enable India to wean itself away from foreign capital while establishing its footprint in innovation across the globe.

Startup India: A Decade of Growth

The Startup India Action Plan started back in 2016 and its existence has contributed vigorously to the expansion of the “Startup” ecosystem within India. In particular, it has resulted in:

An increase in investment from within the country into the startup space.
Creation of more innovation-led companies.
Enhanced government support through financial and policy handouts.

By removing barriers to capital and promoting investment within the country, the Indian government is looking to boost India's ranking as a worldwide innovation powerhouse.

Conclusion

The fund of funds with a budget of ₹10,000 crores in 2025 will provide essential funding to startups in seed and growth stages. This step focuses on increasing capital access, reducing constraints and enhancing internal investments which supports India’s aspiration to build a global startup ecosystem.

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