The amounts committed under the Fund of Funds for Startups have shown notable growth over the years recording a CAGR of over 21% since the launch of the Scheme.
According to the Ministry of Commerce and Industry, these AIFs in turn have invested a sum of Rs 11,206 crore in 720 various startups.
The Central government on Monday said that the Funds of Funds for Startups (FFS), which was launched under the Startup India initiative in 2016 by Prime Minister Narendra Modi, has committed a total of Rs 7,385 crore to 88 various Alternative Investment Funds (AIFs) as of September 24, 2022.
FFS was announced with a corpus of Rs 10,000 crore and since it has been playing a monumental role in mobilizing domestic capital in the Indian startup ecosystem.
The corpus is set to be built up over the 14th and 15th Cycles (FY 2016-20 and FY 2021-25) of the Finance Commission through budgetary support by the Department for Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce and Industry.
Under the FFS, support is extended to SEBI registered Alternative Investment Funds (AIFs), which in turn invest in startups.
FFS has made capital available to startups at the early stage, seed stage, and growth stage and also played a catalytic role in terms of facilitating the raising of domestic capital, reducing dependency on foreign capital, and encouraging homegrown and new venture capital funds.
CureFit, Dunzo, FreshToHome, Jumbotail, Unacademy, Uniphore, Vogo, Zetwerk, Zostel etc. are some of the notable startups funded through FFS, according to the ministry.
Collectively, the AIFs supported by FFS have a target corpus of more than Rs 48,000 crore, the ministry said and added that Chiratae Ventures, India Quotient, Blume Ventures, IvyCap, Waterbridge, Omnivore, Avishkaar, JM Financial, and Fireside Ventures, are among the prominent AIFs out of the leading startup investment firms supported under the FFS.
The amounts committed under FFS have shown notable growth over the years recording a CAGR (Compound Annual Growth Rate) of over 21% since the launch of the Scheme.
FFS has not only made capital available for startups at the early stage, seed stage and growth stage but also played a catalytic role in terms of facilitating the raising of domestic capital, reducing dependence on foreign capital and encouraging homegrown and new venture capital funds.
Donzo, Cure Fit, Fresh To Home, Jumbo Tail, Unacademic, Unisphere, Voge, Zoster, Ze twerk etc., are some of the notable startups funded through FFS, the ministry said.
“Collectively, the AIFs supported by FFS have a target corpus of over Rs 48,000 crore,” the ministry said adding that Chiratae Ventures, India Quotient, Blume Ventures, IvyCap, Waterbridge, Omnivore, Aavishkaar, JM Financial, and Fireside Ventures, are among the prominent AIFs of leading startup investment firms supported under FFS.
The amount committed under FFS has seen notable growth over the years recording a CAGR of over 21 per cent in since the launch of the Scheme.
Furthermore, the Small Industries Development Bank of India (SIDBI) which is responsible for operationalizing the Scheme has undertaken a series of reforms recently to expedite the drawdowns to enable AIFs assisted under FFS to avail accelerated drawdowns. This has created a positive impact and have resulted in year on year (Q1 FY 2021-22 vis-a-vis Q1 FY 2022-23) surge of 100 per cent in the number of drawdowns.
Investments into eligible startups are approximately 3.7 times of FFS disbursements which are well above the minimum stipulated 2 times under the Scheme. Performing startups supported through FFS are showing a valuation increase by more than 10 times with a number of them even achieving unicorn status (valuation of over USD 1 billion).
