Ever since the Centre launched the Fund of Funds for Startups (FFS) with a corpus of $1.5 Bn (INR 10K Cr) in January 2016, the DIPP (Department of Industrial Policy and Promotion), Small Industries Development Bank of India (SIDBI), and selected alternate investment funds (AIFs) have been aiming at maximum disbursal of the allotted funds till 2025.
Though the initial fund disbursement was low, since the beginning of 2018, the AIFs have accelerated startup investments under the Fund of Funds.
In early 2018, it was reported that DIPP has released $76.9 Mn (INR 500 Cr) to SIDBI in FY16 and $15.3 Mn (INR 100 Cr) in FY17.
These numbers were really low considering that the entire Fund of Funds corpus has been earmarked for allocation across two finance commission cycles (2015-2020 and 2021-2025).
However, in an April 6, 2018 circular, SIDBI claimed that it has committed $170.57 Mn (INR 1,136 Cr) to 25 VC Funds, who in turn have invested $85.44 Mn (INR 569 Cr) in 120 unique startups.
The circular further said that the modification of the definition of startups in May 2017 and improvements incorporated in the recognition process have helped reduce the time taken for grant of recognition certificates from 10-15 days previously to one-four days at present.