April 6, 2025: A new fund of funds for startups with a staggering corpus of ₹10,000 crore to accelerate innovation and support India’s growing startup ecosystem, has been announced by Union Commerce and Industry Minister Piyush Goyal at Startup Mahakumbh 2025 event.
The fund is set to foster the growth of deep tech startups across sectors like artificial intelligence (AI), robotics, biotechnology, machine learning, and quantum computing, positioning India as a global leader in innovation.
Fund of Funds to Focus on Early-Stage Entrepreneurs; Rs 2,000 crore to SIDBI
A key objective of the new fund of funds Rs 10,000 crore fund is to provide much-needed early-stage financial support to budding entrepreneurs. Many startups, especially in high-tech sectors, often struggle to secure funding due to high capital requirements and long gestation periods. With a major focus on seed funding, this initiative aims to bridge the funding gap, enabling small startups to scale and innovate.
The government has allocated Rs 2,000 crore to SIDBI (Small Industries Development Bank of India) in 2025, which will kickstart the disbursement process. This move is expected to drive significant growth in sectors like AI, robotics, and biotech, which often require substantial investments to move beyond initial concepts.
Deep Tech Startups in Focus
This new fund will specifically target deep tech innovations in fields such as artificial intelligence, robotics, machine learning, quantum computing, precision manufacturing, and semiconductor design. These sectors are crucial to the future of technology and require specialized, patient capital to thrive.
By channeling resources into these cutting-edge fields, the government aims to build a robust ecosystem that can address national priorities, including sustainable development and national security, through homegrown technological solutions.
Minister Piyush Goyal emphasized that these efforts will help develop breakthrough technologies that not only benefit India’s economy but also contribute to global innovation. With the new fund of funds funding initiative, the government aims to nurture a strong pipeline of startups that can create technologies with real-world applications and long-term societal impact.
Dedicated Startup India Desk
As part of the comprehensive effort to empower startups, the government also introduced the Startup India Desk within the Ministry of Commerce and Industry. This desk will act as a helpline for entrepreneurs, providing them with guidance on funding, resources, and government policies. Entrepreneurs can reach out to the Startup India Desk via a dedicated toll-free number, available in regional languages, making it easier for founders across the country to access support.
Promoting Local Innovation
By supporting deep tech startups, the government is aiming to create an environment where India becomes a global hub for technological innovation. The fund will help develop AI, robotics, and biotech solutions that could lead to significant advancements in healthcare, manufacturing, and national security.
Through these initiatives, India is taking a bold step towards building an innovation-driven economy. The Rs 10,000 crore fund of funds is not just a financial boost but a commitment to developing indigenous technologies that can meet national needs and compete globally.
Expanding Infrastructure Support
In addition to the funding, Goyal urged SIDBI to establish support centers in every state, which will provide infrastructure and shared facilities for early-stage entrepreneurs. This decentralized approach will ensure that support is accessible across the country, encouraging innovation even in remote and underserved regions.
The Rs 10,000 crore fund of funds for startups marks a turning point in India’s technological landscape. By nurturing cutting-edge industries like AI, robotics, and biotech, the government is empowering the next generation of innovators and entrepreneurs.
With enhanced access to funding and resources, Indian startups will now have the support they need to develop world-class technologies, ensuring India’s position as a leader in the global innovation race.
