DPIIT designates ₹10,000 crore Fund of Funds; six startups win FICCI–Mercedes-Benz innovation challenge

The Department for Promotion of Industry and Internal Trade (DPIIT) has designated a ₹10,000 crore Fund of Funds for Startups, marking one of the largest capital commitments to India’s entrepreneurial ecosystem in recent years.

The announcement was made by Sanjiv Singh, Joint Secretary, Department for Promotion of Industry and Internal Trade, at the FICCI–Mercedes-Benz India Bharat Innovation & Business Ideas Challenge Programme in New Delhi.

Singh said the scale of the fund reflects the transformation of India’s startup landscape since the launch of the Startup India initiative in 2016. At that time, he noted, the number of recognised startups was a fraction of what it is today. The ₹10,000 crore allocation, he added, underlines the government’s confidence in the sector’s maturity and long-term potential.

The Fund of Funds model channels capital through SEBI-registered alternative investment funds, which then invest in startups across sectors. The latest corpus is expected to strengthen domestic funding pipelines, particularly for ventures seeking to scale operations.

Challenge spotlights manufacturing, mobility and sustainability

The announcement coincided with the conclusion of the Bharat Innovation & Business Ideas Challenge, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in partnership with Mercedes-Benz India.

Launched in December 2025, the programme focused on startups in manufacturing, sustainability, decarbonisation, electric mobility and education. Thirty-two ventures were shortlisted after a multi-stage evaluation process, with six emerging as winners: CarbonM Fuelmax Technology Private Limited, Exobot, AmpCycle, Dexsent Robotics Private Limited, CALLX RINGERS PRIVATE LIMITED and X Able.

Singh said that while capital is important, governance and resilience remain critical for long-term success. “Entrepreneurial success is built over time. Funding must be matched by discipline and value creation,” he said.

Public–private partnerships gain prominence

Vyankatesh Kulkarni, Executive Director and Head of Operations at Mercedes-Benz India, said industry engagement can help bridge the gap between innovation and commercial deployment. He noted that structured platforms connecting startups with established companies can accelerate technology adoption.

The event brought together policymakers, investors and industry leaders, reflecting the increasing emphasis on public–private collaboration in supporting early-stage enterprises.

With global venture capital flows turning selective, the fresh ₹10,000 crore allocation signals continued policy intent to anchor startup financing domestically while encouraging sector-focused innovation in manufacturing and clean technologies.