Startup India AIF scheme disburses Rs 3,107 Crore in last three years; this is 70% of what was committed

In the last three years, a little less than 70% of the total amount committed to Alternative Investment Funds (AIFs) under the Startup India scheme was disbursed, according to government data.

While a commitment of Rs 4452.75 crore was made, the amount disbursed between January 1, 2023 and October 31, 2025, was Rs 3107.55 crore.

This is according to a written response in the Lok Sabha by Jitin Prasada, Minister of State in the Ministry of Commerce and Industry, today.

Prasada was responding to a query raised by Samajwadi Party MP Anand Bhadauria.

"The Fund of Funds (FFS) has been established with a corpus of Rs. 10,000 crore to catalyse venture capital investments and is operationalized by Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs) which in turn invest in startups," reads the response.

These AIFs deploy capital into eligible companies across sectors, helping them scale with patient, professional funding.

Data also shows that, in the last three years combined, the largest amount was withdrawn in Maharashtra (Rs 1918.96 crore). Karnataka comes second, though the amount disbursed in the state is less than half of Maharashtra's amount (Rs 715.23 crore). It was Rs 157.73 crore in Delhi and Rs 129.38 crore in Tamil Nadu.

While the Fund of Funds was created in 2016, according to SIDBI's portal, "as of 31st January 2024, SIDBI has committed INR 10,229 crores to 129 AIFs; further INR 4,552 crores have been distributed to 92 AIFs. A total of INR 17,452 crores has been injected to boost 939 startups."

The minister said that, as on June 30, 2025, net commitments of Rs. 9,994 crore had been made to 141 AIFs supported under the Startup India scheme.