India, Feb. 1 -- Union finance minister Nirmala Sitharaman on Saturday announced that a new 'Fund of Funds' for startups will be set up with an expanded scope and a fresh contribution of Rs.10,000 crore.

In her 8th budget speech, the finance minister announced that Alternate Investment Funds (AIFs) for startups have received over Rs.91,000 crore in commitments, supported by a Rs.10,000 crore government Fund of Funds.

A fund of funds (FoF) differs from traditional investment models by pooling resources to invest in other venture capital or private equity funds, rather than directly investing in individual companies.

According to a report by GlobalData, funding for Indian startups fell by 66 percent in value from January to November 2023...