Hyderabad, Feb 10 (KNN) In 2016, as part of the Startup India Action Plan, Prime Minister Narendra Modi launched the Fund of Funds for Startups (FFS), a program aimed at catalysing India's startup ecosystem.

Managed by the Small Industries Development Bank of India (SIDBI) under the guidance of the Department for Promotion of Industry and Internal Trade (DPIIT), this initiative has emerged as a game-changer for startups in the country.

Today, FFS stands as one of DPIIT's flagship programs and a testament to the Indian government's commitment to fostering innovation and entrepreneurship.

Recently, a comprehensive assessment of the scheme by CRISIL, India’s leading analytics company, highlighted its profound impact on the startup landscape.

The report, titled "Prabhaav", was unveiled by SIDBI, showcasing the remarkable outcomes of FFS on Friday.

Shri S. Ramann, Chairman & Managing Director, SIDBI along with Shri S P Singh, CGM Venture Finance, presented the report to Dr Vivek Joshi, Secretary, Dept. of Financial Services, Ministry of Finance, GoI, Shri Rajesh Kumar Singh, IAS, Secretary, DPIIT and Shri Sanjiv, IRS, Joint Secretary, DPIIT, Ministry of Commerce & Industry.

According to the findings, FFS has significantly bolstered the availability of risk and growth capital for startups, positioning India as the third-largest startup ecosystem globally.

Key highlights from the report underscore the success of FFS, revealing that it has sanctioned commitments to 129 Alternative Investment Funds (AIFs) across various segments.

These funds have collectively invested approximately Rs 17,534 crore in 938 unique startups, indicating a substantial multiplier effect on capital flow within the startup ecosystem.

One of the notable achievements of FFS is its support for startups beyond Tier 1 cities, with 129 startups receiving investments totalling Rs 1,590 crore.

Moreover, the scheme has prioritised diversity and inclusiveness, leading to increased funding for women-led startups and fund managers.

FFS has also played a pivotal role in nurturing startups in emerging sectors such as deep tech, agri-tech, health tech, and sustainability.

Notably, 18 startups supported by FFS have already achieved unicorn status, demonstrating the program's success in fostering innovation and growth.

The impact of FFS extends beyond funding, as evidenced by its positive influence on the venture capital space in India.

A survey conducted by CRISIL revealed that FFS support was instrumental in facilitating fund raises for 89 per cent of respondents.

Additionally, the scheme has empowered first-time fund managers, with 35 per cent of AIFs being managed by newcomers, thus contributing to the expansion and inclusivity of the VC funding ecosystem.

The commendable progress achieved under FFS has garnered praise from government officials, including the Secretary of the Department of Financial Services and the Secretary of DPIIT.

SIDBI's role in managing the scheme and its commitment to driving innovation and inclusivity have been lauded as exemplary.

Since its inception in 1990, SIDBI has been at the forefront of supporting innovative enterprises and startups in India.

Over the years, it has partnered with the government to implement various initiatives aimed at nurturing the startup ecosystem.

(KNN Bureau)