Govt commits Rs. 7,385 Crore to 88 AIFs under Startup India Initiative

• ByStartupStory     |    December 27, 2022

The ministry of commerce and industry announced on Monday that the Fund of Funds for Startups (FFS), established under the Prime Minister of India’s Startup India initiative in 2016 with a corpus of Rs 10,000 crore, has committed Rs 7,385 crore to 88 Alternative Investment Funds (AIFs) as of September 24, 2022.

In turn, these AIFs have invested Rs 11,206 crore in 720 startups. FFS has assisted in the anchoring of 67 AIFs out of 88 supported, with 38 of these being first-time fund managers.

“FFS has been playing a monumental role in mobilizing domestic capital in Indian startup ecosystem,” the commerce and industry ministry said in a statement.

Dunzo, CureFit, FreshToHome, Jumbotail, Unacademy, Uniphore, Vogo, Zostel and Zetwerk are some of the notable startups funded through FFS, according to the statement.

“Collectively, the AIFs supported by FFS have a target corpus of over Rs 48,000 crore,” the ministry said, adding that Chiratae Ventures, India Quotient, Blume Ventures, IvyCap, Waterbridge, Omnivore, Aavishkaar, JM Financial, and Fireside Ventures, are among the prominent AIFs of leading startup investment firms supported under FFS. 

Since the scheme’s inception, the amount committed under FFS has grown at a CAGR of more than 21%, with a 100% increase in drawdown amounts in the first quarter of FY23 compared to the previous year.

According to the statement, investments in eligible startups are approximately 3.7 times FFS disbursements, which is well above the scheme’s minimum of two times.

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