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Govt commits Rs. 7,385 crore under Fund of Funds for Startup India Investment for 88 Alternative Investment Funds

Newdelhi:26/9/22:Fund of Funds for Startups (FFS), launched under the Startup India initiative in 2016 by the Prime Minister, Shri Narendra Modi has committed Rs. 7,385 crores to 88 Alternative Investment Funds (AIFs) as of 24th September 2022. These AIFs in turn have invested Rs. 11,206 crores in 720 startups. FFS has been playing a monumental role in mobilizing domestic capital in the Indian startup ecosystem.

FFS has announced a corpus of Rs. 10,000 crores. The corpus is to be built up over the 14th and 15th Finance Commission Cycles (FY 2016-2020 and FY 2021-2025) through budgetary support by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, Government of India. Under FFS, support is extended to SEBI registered Alternative Investment Funds (AIFs), which in turn invest in startups.

FFS has not only made capital available for startups at the early stage, seed stage, and growth stage but also played a catalytic role in terms of facilitating the raising of domestic capital, reducing dependence on foreign capital, and encouraging homegrown and new venture capital funds. Collectively, the AIFs supported by FFS have a target corpus of over Rs. 48,000 crores. Among the prominent AIFs of leading, startup investment firms supported under FFS are Chiratae Ventures, India Quotient, Blume Ventures, IvyCap, Waterbridge, Omnivore, Aavishkaar, JM Financial, Fireside Ventures, and more.

The amount committed under FFS has seen notable growth over the years recording a CAGR of over 21% since the launch of the Scheme. Furthermore, the Small Industries Development Bank of India (SIDBI) which is responsible for operationalizing the Scheme has undertaken a series of reforms recently to expedite the drawdowns to enable AIFs assisted under FFS to avail accelerated drawdowns. This has created a positive impact and has resulted in year on year (Q1 FY 2021-22 vis-à-vis Q1 FY 2022-23) surge of 100% in the number of drawdowns.

FFS has helped anchor 67 AIFs out of 88 AIFs supported and 38 of these are first-time fund managers which is in line with FFS’s core objective of anchoring venture capital investments for Indian startups.

Investments into eligible startups are approximately 3.7 times FFS disbursements which are well above the minimum stipulated 2 times under the Scheme. Performing startups supported through FFS are showing a valuation increase by more than 10 times with a number of them even achieving unicorn status (valuation of over USD 1 billion). Dunzo, CureFit, FreshToHome, Jumbotail, Unacademy, Uniphore, Vogo, Zostel, Zetwerk, etc., are some of the notable startups funded through FFS. The returns generated from the success of these startups and the innovation created will remain within the country and facilitate the generation of employment and the creation of wealth.

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.
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