Rs 14,077 cr investments made in 791 startups through FFS, AIFs: MoCI

• ByStartupStory     |    February 4, 2023

According to information provided to the Parliament today, out of the Rs 7,980 crore pledged to 99 Alternative Investment Funds (AIFs) under the Fund of Funds Scheme, Rs 3,400 crore had been paid to 72 of them as of December. These funds have since invested Rs 14,077 crore in 791 startups. 

According to Union minister of state for commerce Som Parkash’s response to a question in the Parliament on Friday, the scheme does not invest directly in startups but rather provides capital to SEBI-registered AIFs, also known as daughter funds, who in turn invest money in expanding Indian startups through equity and equity-linked instruments.

It has not only provided funding for firms in their early, seed, and development stages, but it has also acted as a catalyst for domestic capital raising, reduced reliance on foreign money, and promoted new and domestic venture capital funds. 

In addition, the minister stated that the government has implemented over 50 regulatory reforms since 2016 to make it easier to do business, get finance, and lessen the regulatory burden on the startup ecosystem.

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