Centre's Fund Of Funds Invested Rs 17,534 Cr In 938 Homegrown Startups: Report
A recent CRISIL report has shed light on the significant investment inflows into startups beyond Tier-I cities, with government's fund of funds injecting a Rs 1,590 crore into 129 startups.
The scheme, aimed at fostering the growth of the country's startup ecosystem, has sanctioned commitments for 129 alternative investment funds (AIFs) across various sectors including deeptech, agritech, healthtech, and sustainability.
Established in 2016 with an initial corpus of Rs 10,000 crore, the fund of funds initiative has played a pivotal role in providing vital capital to startups outside Tier-I cities, thereby promoting regional entrepreneurship.
The findings of a third-party assessment conducted by analytics firm CRISIL, named Prabhaav, have unveiled intriguing insights into the performance of the fund of funds scheme.
According to the report, the government has infused Rs 17,534 crore into 938 unique Indian startups through the initiative since its inception in 2016 until November 2023.
Moreover, the scheme has catalysed investments nearly four times the initial capital injection, signifying its effectiveness in stimulating entrepreneurial activity and fostering innovation in the country.
