FoF infuses Rs 700 crore in startup cos

Chennai: Fund of Funds for Start-ups set up the government has provided around Rs 700 crore to Sebi registered Alternative Investment Funds, which in turn invests in start-ups.

Department for promotion of industry and internal trade (DPIIT) had established Fund of Funds for Start-ups in June 2016 with a corpus of '10,000 crore to boost the startup ecosystem. These Fund of Funds (FoF) managed by SIDBI provide capital to Sebi-registered Alternate Investment Funds (AIFs), which in turn invest money in growing Indian startups through equity and equity-linked instruments.

Till November, SIDBI has committed '3,123.20 crore to 47 Sebi registered AIFs. These AIFs have raised a corpus fund of '25,728 crore, of which '696 crore have been drawn from the FoFs for Startups. These AIFs have invested '2,669.83 crore into 279 startups.