When PM Narendra Modi announced the $1.5 Bn Fund of Funds for Startups (FFS) in January 2016 as part of his ambitious his Startup India Plan, for many it was just another promise on paper. But, the hopes and aspirations of several young entrepreneurs of India got an uplift, when on June 22, 2016, the Union Cabinet actually approved the fund and designated SIDBI for the disbursement of the Fund of Funds’ corpus to eligible startups through AIFs (Alternative Investment Funds) registered with the SEBI.
According to October 2017 status report by DIPP on the Startup India website, about $92 Mn (INR 605.7 Cr) from the fund has already been released to SIDBI, and 75 startups have received funding from 17 AIFs so far. The entire Fund of Funds corpus has been earmarked to get allocated across two finance commission cycles (2015-2020 & 2021-2025).
We have listed down the total funding AIFs have received from SIDBI under Fund of Funds as part of Startup India plan. Apart from fund details, we have also included the number of startups that have been funded by each one of them below.
As one can observe, while Chiratae Trust has been sanctioned the maximum corpus, while, Kae Capital Fund II has made the maximum investments in startups, as of September 2017.
How The Fund Of Funds For Startups Work
Although it’s unlikely, yet for the novice, here is a brief rundown on how exactly the SIDBI-AIFs association work to impart designated corpus to the startups, as part of Startup India plan.