Startup Mahakumbh To Amplify Collaboration Between State & Startup Ecosystems: SIDBI’s Manoj Mittal

As India’s startup ecosystem matures and expands into Tier II and Tier III cities, the focus is shifting towards capital accessibility, founder support, and policy-backed initiatives that can drive the next phase of growth. At the centre of this shift is the government’s INR 10K Cr Fund of Funds for Startups (FFS), managed by Small Industries Development Bank of India (SIDBI), which has channelled investments into more than 1,200 startups through 153 alternative investment funds (AIFs).

The bank is also working closely with incubators, academic institutions, and state governments to push startup activity in underserved markets — a shift that comes as early stage capital becomes more selective post-2022.

Now, with Startup Mahakumbh — scheduled from April 3–5 at Bharat Mandapam in New Delhi, SIDBI is stepping into a larger convening role. The event is expected to bring together thousands of startups, investors, and government stakeholders, with a strong focus on sector-specific growth, public-private collaboration, and innovation from Tier II and III cities.

In an interaction with Inc42, SIDBI CMD Manoj Mittal explains how the bank is refining its startup playbook, what the next phase of capital deployment could look like, and why events like Startup Mahakumbh matter in India’s current funding environment.

Here are the edited excerpts from the conversation…

Inc42: What are some of the key outcomes of the Fund of Funds initiative for startups and how does SIDBI plan to scale its impact in the coming years?

Manoj Mittal: The government’s Fund of Funds for Startups (FFS) initiative has mobilised around INR 92K Cr investments so far by investing in 153 AIFs, which created a multiplier effect and ensured sustained capital availability for startups.

The fund supports over 1,200 startups across sectors, enabling them to grow their businesses and innovate. FFS facilitates the formation of around 22 unicorns, while some soonicorns supported by FFS will soon turn unicorns.

By funding startups, the fund has also become an enabler in job creation and economic growth, particularly in new industries. It has drawn in local investors, making us less reliant on overseas capital, and helped develop the Indian venture capital environment by supporting fund managers and nurturing industry-best practices.

We will work on expanding the FFS ambit to early-stage startups in Tier II and Tier III cities, mobilising sectoral funds focussed on national priorities like sustainability and deep tech, encouraging fund managers with strong MSME linkages, and helping boost diversity and inclusion in entrepreneurship. 

Inc42: How are you trying to foster innovation and entrepreneurship in Tier II and III cities?

Manoj Mittal: Since FFS was rolled out, 181 startups from beyond Tier I cities have been funded with around INR 2,100 Cr. As a result, deal activity across sectors beyond Tier I cities picked up substantially. We have taken a few steps to bring about a similar change across the country.

First, collaboration with the state governments. SIDBI has collaborated with a number of states to set up exclusive startup-focussed funds. 

Second, launching awareness programmes. We have been working on outreach programmes for development of the entrepreneurial ecosystem in Tier I and III cities. Such initiatives help potential entrepreneurs and startups be informed about opportunities and support systems.

Third, tie-ups with academic institutions like IITs, NITs, and IIMs, as well as leading fund managers, to develop mentorship and funding avenues. 

Inc42: How is SIDBI collaborating with various stakeholders in the startup ecosystem to create a more supportive environment for entrepreneurs, especially the first-time entrepreneurs?

Manoj Mittal: We have set up a host of funds since 1999 to invest in startups. SIDBI Venture Capital Ltd (SVCL), for instance, has operated several contra-theme funds (funds that invest in underperforming stocks for long term gains) since 1999. It was among the first to set up an IT-dedicated fund (NFSIT), investing in firms like BillDesk and Manthan when the industry’s attention was on IT and infrastructure. SIDBI also launched the SME Growth Fund for manufacturing ((to support manufacturing SMEs) in 2004, and a first-of-its-kind social venture fund. 

SVCL is investing out of an export-oriented fund (Ubharte Sitaare), a deep tech-focussed fund (Atmanirbhar Startup Fund), and several state-focussed funds for startups in Assam and Tripura, where the ecosystem is being built. I must mention that IN-SPACe recently nominated SVCL to manage an INR 1,000 Cr fund for the space tech industry in India.

SIDBI is also focussed on non-financial interventions. It runs mentorship programmes by experts to guide entrepreneurs.

Such initiatives have led a number of states to launch their Fund of Funds schemes, with SIDBI mandated to manage them in Uttar Pradesh, Odisha, Bihar, and Maharashtra.

We have also facilitated early stage support by partnering with incubators to provide mentorship, resources, and access to capital. A seed-fund corpus of INR 121 Cr has been sanctioned to 16 incubators and an additional INR 38 Cr to eight more for equity support to seed-stage startups, with some of them in the defence space.

Inc42: How do you see the impact of events like Startup Mahakumbh on the ecosystem?

Manoj Mittal: Events like these are catalytic enablers for the startup ecosystem. One of the key strengths of Startup Mahakumbh is that it gives startups a platform to showcase their products and services to global decision-makers — offering exposure not just to investors, but also to potential partners, enablers, and customers.

I believe the networking opportunity that it offers to new businesses to associate with mentors, experts, investors, and policymakers is the true highlight of the event. It amplifies the spirit of entrepreneurship across the nation.

Inc42: Which specific track or feature of Startup Mahakumbh will be the most impactful for MSMEs and early stage startups?

Manoj Mittal: For startups and MSMEs in their early stages, several tracks and features of Startup Mahakumbh stand out in catalysing growth. 

Investor Connect and Networking Sessions, for example, provide a platform for startups to pitch directly to potential investors, partners, and business enablers, thereby opening doors for funding and collaboration. 

Mentorship and guidance workshops, on the other hand, provide early stage entrepreneurs with clear direction and hands-on tips from seasoned founders and industry experts for setting up and expanding a business successfully.

Technology showcases, another key highlight of the event, enables startups to identify and adopt emerging technologies, while sectoral panels and discussions offer sector-specific insights into priority sectors.