India, April 27 -- Earlier this month, the Ministry of Commerce and Industry announced the launch of a second fund of funds (FoF 2.0) to accelerate capital allocation for the startup ecosystem, especially deeptech and manufacturing ventures. The FoF scheme has a combined corpus of Rs.10,000 Cr to be invested in SEBI-registered category I and II AIFs. These AIFs will in turn invest in equity/equity-linked, and debt instruments of various DPIIT-registered startups.

"This approach is expected to ensure disciplined capital allocation, crowding-in of private investments, and wider access to funding across sectors, stages, and geographies," the department said in a statement.

Last week, the DPIIT notified the operational guidelines for the sc...