DPIITFFS

Fund of Funds for Startups (FFS)

A Rs 10,000 crore government corpus run by SIDBI that backs SEBI-registered venture funds, which then invest equity in DPIIT-recognised startups. You reach it indirectly by raising from a participating fund, not by applying to SIDBI.

OtherFirst-time FounderDomestic InvestorForeign Investor
Benefit
Non-monetary
Typical lead time
Phase
Funding

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Official fee

₹0 — completely free

There is no fee for a startup to be funded. You never apply to SIDBI directly, and participating VC funds evaluate you through standard, free pitching channels.

Beware of lookalike portals

Beware of agents claiming they can guarantee FFS funding for an upfront advisory or registration fee. FFS funding is managed strictly by empanelled SEBI funds.

Only the "Apply on official portal" button above leads to the verified government site.

Highlights and Media

Audio Summary Guide

Fund of Funds (FFS) Overview Guide

Generated via NirmanKit AI Voice

0:002:20

This AI-generated podcast overview simplifies complex scheme documents. Refer below for official text.

Key Highlights

₹10,000 Cr Corpus

Managed by SIDBI to indirectly support early and growth stage startups through registered AIFs.

Indirect Equity Route

Startups do not apply to SIDBI directly; they raise equity from participating venture capital funds.

Multiplier Effect

Daughter funds must invest at least 2x the FFS contribution into DPIIT-recognized startups.

FFS Capital Flow Structure

How government capital flows through SIDBI and AIFs to reach DPIIT-recognized startups

FFS Contribution (Mother Fund)33% FFS Contribution

Government corpus managed by SIDBI contributing up to 35% of the daughter fund size.

Private Capital (AIF Co-investment)67% Co-investment

Venture Capital and PE funds raise the remaining 65%+ from institutional and private investors.

Who is eligible

  • Your startup has DPIIT recognition, which lets participating funds count their investment in you toward their FFS commitment.
  • You are looking for funding, which is exactly what daughter funds drawing on the FFS corpus provide through equity.
  • Raising from a participating Alternative Investment Fund is the route to benefit from FFS indirectly.

Eligibility rules · v1 · effective 22 June 2016

Who is not eligible

  • This route helps startups raising equity capital; mark funding as one of your goals so we can match you to participating funds.
  • Daughter funds can only count your round toward FFS if your startup is DPIIT-recognised — getting that recognition first opens this route.

How to apply

  1. Get DPIIT recognition

    Make sure your startup holds valid DPIIT recognition, since participating funds can only count their investment in DPIIT-recognised startups toward their FFS commitment.

  2. Identify participating funds

    Find SEBI-registered Category I and II Alternative Investment Funds that draw on the FFS corpus and invest in startups at your stage and sector.

  3. Pitch and raise your round

    Approach a participating fund and go through its normal evaluation and due-diligence process to raise an equity round — this is how you benefit from FFS indirectly.

  4. Close the investment

    Complete the funding round with the fund, which may be using its FFS commitment to support the equity investment in your startup.

Sources

Additional Details

The Fund of Funds for Startups (FFS) is a Rs 10,000 crore government corpus operated by SIDBI to deepen the pool of capital available to Indian startups. Importantly, FFS does not invest in startups directly. Instead, it contributes to SEBI-registered Category I and Category II Alternative Investment Funds, known as daughter funds.

Each daughter fund is required to invest at least twice the amount it receives from FFS into DPIIT-recognised startups, in the form of equity. This design means a relatively small government commitment is multiplied into a much larger flow of private investment reaching startups on the ground. For its role, SIDBI is reimbursed only a small management and operating expense, around 0.5% of the commitments it makes.

For a founder, the practical takeaway is that you access FFS indirectly. You do not apply to SIDBI for money. You raise a normal equity round from one of the participating Alternative Investment Funds, and that fund may in turn be drawing on the FFS corpus to support its investment in your company.

Applying to and raising from a registered investment fund is part of normal fundraising and should never involve paying a government fee. Be cautious of anyone who claims they can secure FFS money for an upfront charge — you should never pay an agent or middleman to be considered.

DPIIT·₹5,00,000 – ₹50,00,000

Startup India Seed Fund Scheme (SISFS)

Open (Rolling)

Up to ₹20 lakh grant for proof-of-concept / prototyping, or up to ₹50 lakh debt for market entry — for early-stage DPIIT-recognised startups, via approved incubators.

Last Verified 89 days ago

DPIIT

DPIIT Startup Recognition

Open (Rolling)

Government recognition for innovative startups — unlocks tax holidays (80-IAC), self-certification, and access to SISFS, CGSS, and SIPP.

Last Verified 67 days ago
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