Budget 2025: Modi government announces ₹10,000cr fund for start-ups
What's the story
In the Union Budget 2025, Finance Minister Nirmala Sitharaman has announced a new fund of funds (FoF) for start-ups. The FoF, which is managed by the Small Industries Development Bank of India (SIDBI), has been allocated an expanded budget of ₹10,000 crore. This initiative will help bolster the start-up ecosystem in India and drive innovation and entrepreneurship.
Management details
SIDBI's role in managing the FoF
SIDBI has previously supported venture capital firms including Blume Ventures, Kae Capital, Stellaris Venture Partners, and Sorin Investments. Given this experience, SIDBI will play a crucial role in administering the newly announced fund and ensuring its effective utilization in the start-up sector.
Past performance
SIDBI's previous FoF deployment
Under the FoF scheme, SIDBI has already deployed ₹11,147.70 crore. This number shows the bank's active involvement in managing funds to promote start-ups and venture capital firms. The announcement of a new fund was expected as ET reported on January 20, and it is in line with the government's continued efforts to promote India's growing start-up ecosystem.