The Fund of Funds for Startups (FFS), an initiative of the central government to provide funding opportunities for Indian startups, has invested a total of Rs 7,385 crore over the past six years. As a part of the Startup India project, it was introduced in 2016.
A press release on PIB revealed that this money was invested in 88 alternate investment funds. Since their launch, these AIFs’ investments have risen by a compound annual growth rate of 21%, putting them nearly three-fourths of the way toward their target of Rs 10,000 crore by FY 2025.
“FFS has been playing a monumental role in mobilizing domestic capital in Indian startup ecosystem,” the commerce and industry ministry said in a statement.
In the past six years, the AIFs include companies with names like Chiratae Ventures, India Quotient, Blume Ventures, IvyCap, Waterbridge, Omnivore, Aavishkaar, JM Financial, and others, have invested Rs 11,206 crore in 720 startups. To minimize dependence on foreign capital, this money has primarily been utilized to invest in seed, early, and growth stage startups.
Of the 88 AIFs, 67 have had the FFS as the anchor investor, contributing to their success. Investments into qualified startups were supposed to be at least twice as much as what the FFS gave to each AIF, but in reality, the funds have been given out closer to 3.7 times as much.
Large unicorns and well-known brands like Dunzo, CureFit, FreshToHome, Jumbotail, Unacademy, Uniphore, Vogo, Zostel, and Zetwerk are just a few of the startups that have received investments. The scheme’s profits will be invested back into the ecosystem.