Fund of Funds for Startups (FFS): How policy vision transformed India's entrepreneurial ecosystem
Fund of Funds for Startups (FFS) in 2016, sceptics shrugged it off as another bureaucratic black hole. Seven years later, results speak volumes about its success: Rs 11,688 cr committed through 151 AIFs, catalysing a capital pool of around Rs 81,000 cr. An investment of Rs 21,277 cr has already been made in 1,173 startups. Beyond these numbers lies a compelling story of how appropriate policy design has changed India's entrepreneurial ecosystem.
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FFS' power lies in its multiplier effect. Instead of investing directly, GoI channels funds through Sebi-registered AIFs, which must double FFS contributions in eligible startups. This has revolutionised early-stage funding, especially in sectors where traditional investors shy away.
Three examples of successful FFS- backed projects:
Pi Ventures invested in Niramai when AI-based healthcare solutions were still viewed sceptically. Today, Niramai's portable breast cancer screening tech has completed over 2 lakh screenings, making early detection accessible across rural India. Niramai has raised subsequent rounds from global investors, validating FFS' role in derisking innovative technologies.
Omnivore Partners invested in DeHaat, a full-stack agri services platform, when digital adoption in the sector was minimal. Today, DeHaat serves over 2 mn farmers across Bihar, UP and West
