Govt approves second Fund of Funds for Indian startups, sets up Startup India Desk

Union Commerce and Industry Minister Piyush Goyal said the government has approved the second fund of funds for startups with a corpus of Rs 10,000 crore.

At the Startup Mahakumbh event, the Minister remarked that Rs 2,000 crore would be disbursed to SIDBI this year, even as the government looks to encourage the deep tech startup segment in the country.

A significant portion of the fund will be reserved for seed funding of small startups and to support deep tech innovation startups, he said.

The Minister also announced the setting up of a dedicated Startup India Desk within the ministry to serve as a helpline for budding entrepreneurs across India, accessible through a simple four-digit toll-free number in regional languages.

Through this fund, "We aim to foster the development of cutting-edge technologies like AI, robotics, quantum computing, machine learning, precision manufacturing and biotech," he said, adding that through the Startup India Desk, a startup can suggest steps to further improve the ecosystem and flag problems if they are facing any.

The fund's objective is to provide early-stage financial support to budding entrepreneurs, who often face challenges in accessing traditional forms of capital.

The fund will focus on startups operating in cutting-edge domains, including artificial intelligence (AI), machine learning, quantum computing, robotics, precision manufacturing, biotech, and semiconductor design, where long gestation periods and high capital requirements often pose hurdles.

By mobilising patient capital, the government aims to build a strong pipeline of indigenous technology solutions that can address national priorities and position India as a global innovation leader, Goyal said.

He further urged SIDBI to establish at least one support centre in every state to provide basic infrastructure and shared facilities for early-stage entrepreneurs.