Founder guide · India · Checked 29 October 2026
How SIDBI’s Fund of Funds for Startups (FFS) reaches founders via AIFs
The Fund of Funds for Startups (FFS) is a ₹10,000 crore program managed by SIDBI for the Government of India. It invests in SEBI-registered Alternative Investment Funds (AIFs), which then fund eligible startups. Founders cannot apply directly; they must seek funding from AIFs backed by FFS.
By the StartupReader guides desk · 3 min read · Built from 4 official pages and re-checked monthly. Independent; not affiliated with the program.
Fund of Funds for Startups
- Total corpus of FFS
- ₹10,000 crore
- Sanctions as of March 31, 2022
- ₹7,225.45 crore
- Disbursements as of March 31, 2022
- ₹2,492.24 crore
- Target date for full corpus provision
- March 2025
What is the Fund of Funds for Startups (FFS)
FFS is a ₹10,000 crore fund launched in June 2016 under the Startup India Action Plan. It is managed by SIDBI on behalf of the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.
The program does not invest directly in startups. Instead, SIDBI contributes to the corpus of SEBI-registered Venture Capital Funds or Alternative Investment Funds (AIFs) under Category I and II. These AIFs must then invest a specified portion of their corpus in eligible startups as per the FFS mandate.
How FFS reaches startups through AIFs
SIDBI selects and commits funds to AIFs that meet the FFS criteria. Once an AIF receives FFS support, it must deploy the capital into startups that qualify under the scheme’s guidelines.
As of March 31, 2022, SIDBI had sanctioned ₹7,225.45 crore to 17 AIFs. These AIFs had disbursed ₹33.63 crore to 62 startups, catalyzing a total investment of ₹220 crore in those startups.
Founders should confirm this with the AIF during discussions.
Who can benefit from FFS
Startups must meet the DPIIT recognition criteria to be eligible for funding from FFS-backed AIFs. DPIIT recognition requires:
The startup must be incorporated as a Private Limited Company, Registered Partnership Firm, or Limited Liability Partnership. The period of existence and operations should not exceed 10 years from the date of incorporation. Annual turnover should not exceed ₹100 crore for any financial year since incorporation. The entity should not have been formed by splitting up or reconstructing an already existing business. The startup must work toward development or improvement of a product, process, or service and/or have a scalable business model with high potential for wealth and employment creation.
FFS does not fund startups directly. Founders must approach AIFs that have received commitments from FFS.
How to access FFS funding as a founder
Founders cannot apply to FFS directly. The process involves:
Register and get recognized as a startup on the Startup India portal. This is mandatory for eligibility. Identify AIFs that have received commitments from FFS. Founders may need to research or network within the startup ecosystem to find these AIFs. Approach the AIFs for funding. Each AIF will have its own application and due diligence process. If selected, the AIF will invest in the startup using the capital it received from FFS.
What founders should know before approaching AIFs
FFS is a back-end mechanism. Founders interact only with AIFs, not with SIDBI or DPIIT for FFS funding. AIFs supported by FFS are required to invest in startups, but the final investment decision rests with the AIF. Founders should prepare for standard venture capital due diligence, including business model validation, market potential, and team assessment.
Other SIDBI-managed funds
SIDBI manages three Fund of Funds on behalf of ministries or state governments:
Fund of Funds for Startups (FFS): ₹10,000 crore corpus, managed for DPIIT. ASPIRE Fund: ₹310 crore corpus, managed for the Ministry of MSME, with a focus on agro and rural enterprises. UP Startup Fund: ₹1,000 crore corpus, managed for the Government of Uttar Pradesh. ₹20 crore has been released and committed as of the latest report.
These funds operate independently of FFS. Founders should check the specific eligibility and focus areas of each fund if considering them.
Confirm details on official pages
Rules, sanctions, and disbursements under FFS may change. Founders should confirm all figures, eligibility criteria, and processes on the official SIDBI and Startup India pages before proceeding.
The official pages used for this guide are:
SIDBI Annual Report 2021-22 (Fund of Funds section) and Startup India’s government initiatives page.
FAQ
Fund of Funds for Startups: questions founders ask
Can a startup apply directly to FFS for funding?
No. FFS invests only in SEBI-registered AIFs, which then fund startups. Founders must approach AIFs that have received FFS commitments.
Is DPIIT recognition mandatory to receive FFS-backed funding?
Yes. Only DPIIT-recognized startups are eligible for funding from AIFs supported by FFS.
How long does it take for an AIF to deploy FFS capital into startups?
The official pages do not provide a timeline. Founders should confirm this with the AIF during discussions.
Can a startup receive funding from FFS if it is older than 10 years?
No. Only startups incorporated for 10 years or less and meeting other DPIIT criteria are eligible.
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Coming soonOfficial sources for this guide
Rules and amounts change. Check these before you apply.
- Fund of Funds — sidbi.in
- Startup India — startupindia.gov.in
- Startup India — startupindia.gov.in
- Startup India — startupindia.gov.in
How this guide was made: StartupReader wrote it with AI from the official pages above, read on 29 October 2026. Every figure and name in it was checked automatically against those pages, and anything they don't support was left out. It's re-checked every month. It isn't affiliated with the program. Spotted something out of date? Tell us.
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