The Fund of Funds has transformed the funding scenario for Indian startups, according to Info Edge's Bikhchandani.

The introduction of the Fund of Funds for Startups (FFS) scheme in 2016 by the government, with an initial corpus of Rs 10,000 crore, has significantly transformed the landscape of startup funding in India. Sanjeev Bikhchandani, Co-founder and Executive Vice Chairman of Info Edge, emphasized the scheme's crucial role in bolstering the Indian startup ecosystem and facilitating access to domestic capital.

Rather than directly investing in startups, the FFS scheme provides capital to SEBI-registered Alternative Investment Funds (AIFs), known as daughter funds, which then channel these funds into burgeoning Indian startups through equity and equity-linked instruments. Bikhchandani highlighted the groundbreaking impact of this initiative, particularly during his tenure on the investment committee for the scheme's first two years.

Reflecting on his personal journey as an entrepreneur, Bikhchandani recounted the challenges he faced in accessing funds during the 1990s, underscoring the significant shift in the funding environment since then. He expressed optimism about the positive developments in startup funding over the past decade, characterizing the transformation as an evolution rather than a revolution.

The upcoming three-day mega event, 'Startup Mahakumbh,' slated to commence in Delhi, is poised to bring together over 1,000 startups, more than 500 incubators, numerous investors, and delegations from various countries. Organizers announced that this event will now become an annual fixture, representing a milestone in terms of its vision and scale. Key stakeholders, including unicorn startups, global and domestic venture capitalists, corporates, and industry leaders, are set to participate in this inaugural event.