Sanjeev Bikhchandani Applauds India's Rs 10,000 Crore Startup Fund of Funds 2.0
In a significant endorsement of India's evolving startup landscape, Sanjeev Bikhchandani, the founder of Info Edge, has publicly praised the government's enhanced Fund of Funds for Startups (FFS) 2.0, which now stands at a substantial corpus of Rs 10,000 crore. This initiative, managed by the Small Industries Development Bank of India (SIDBI), is designed to provide crucial capital support to early-stage ventures, fostering innovation and economic growth across the nation.
Boosting the Entrepreneurial Ecosystem
Bikhchandani highlighted that the Fund of Funds 2.0 represents a strategic upgrade from its predecessor, with increased funding and refined mechanisms to address the capital needs of startups more effectively. He emphasized that this move is pivotal in catalyzing the growth of India's startup ecosystem, which has seen exponential expansion in recent years. By injecting liquidity into the market, the fund aims to mitigate funding gaps that often hinder nascent companies from scaling their operations.
The fund operates by investing in SEBI-registered Alternative Investment Funds (AIFs), which in turn provide equity or equity-linked financing to startups. This multi-layered approach ensures that capital reaches a diverse range of sectors, from technology and healthcare to agriculture and clean energy. Bikhchandani noted that such structured support is essential for nurturing homegrown innovations and reducing dependency on foreign investments.
Impact on Job Creation and Economic Development
Beyond financial assistance, Bikhchandani underscored the broader socio-economic benefits of the Fund of Funds 2.0. He pointed out that startups are significant drivers of job creation, particularly for the youth, and contribute to India's GDP growth. The enhanced fund is expected to:
- Stimulate entrepreneurship in tier-2 and tier-3 cities, promoting regional development.
- Encourage risk-taking and innovation among aspiring entrepreneurs.
- Strengthen India's position as a global hub for startups and technology.
Furthermore, Bikhchandani reflected on the evolution of India's startup scene, noting that from a handful of ventures a decade ago, the country now boasts over 100 unicorns and a thriving community of innovators. He attributed this progress to supportive policies like the Fund of Funds, which align with the government's vision of an Atmanirbhar Bharat (self-reliant India).
Challenges and Future Outlook
While lauding the initiative, Bikhchandani also acknowledged challenges such as regulatory hurdles and the need for continuous mentorship beyond funding. He advocated for a holistic ecosystem that combines financial support with incubation programs and skill development to ensure sustainable growth.
Looking ahead, he expressed optimism that the Fund of Funds 2.0 will accelerate India's startup evolution, enabling more companies to achieve global competitiveness. This initiative, coupled with other measures like tax incentives and ease of doing business reforms, is poised to solidify India's reputation as a premier destination for entrepreneurial ventures.
