The Startup India initiative of the Government of India

The Startup India initiative of the Government of India envisages building a robust Start-up ecosystem in the country for nurturing innovation and providing opportunities to budding entrepreneurs.

The Ministry of Commerce and Industry of India launched the Startup India Seed Fund Scheme (SISFS), a government initiative intended to support startups in their early phases and promote innovation. The scheme is a part of the larger “Startup India” campaign, which seeks to foster entrepreneurship and build a strong ecosystem for startups in the nation.

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Key Objectives

  1. Financial Assistance: Support startups in proof of concept, prototype development, product trials, market entry, and commercialization.

  2. Risk Mitigation: Reduce early-stage risks by enabling startups to validate their ideas and secure follow-on funding from investors or financial institutions.

  3. Ecosystem Growth: Foster innovation and entrepreneurship across India, particularly in Tier II/III cities, and create employment opportunities .

Funding Structure

  1. Corpus: ₹945 crore allocated over 4 years (2021–2025).

  2. Disbursement: Up to ₹20 lakh as a grant for validation of Proof of Concept (PoC), prototyping, or product trials .
    Up to ₹50 lakh as debt or convertible debentures for market entry, scaling, or commercialization.

  3. Funds are distributed through DPIIT-approved incubators, which receive grants of up to ₹5 crore each .

Eligibility Criteria

  1. Financial Assistance: Support startups in proof of concept, prototype development, product trials, market entry, and commercialization.

  2. Risk Mitigation: Reduce early-stage risks by enabling startups to validate their ideas and secure follow-on funding from investors or financial institutions.

  3. Ecosystem Growth: Foster innovation and entrepreneurship across India, particularly in Tier II/III cities, and create employment opportunities.

Application Process

  1. Registration: Startups must register on the Startup India portal and obtain DPIIT recognition.

  2.  Apply to Incubators: Submit applications to up to 3 incubators in order of preference via the Startup India portal.

  3. Evaluation: Incubators assess applications based on innovation, market potential, and team capability within 45 days.

  4. Disbursement: Funds are released in milestone-based tranches after signing agreements with incubators .

How Startup India Seed Fund Will Operate

The Seed Fund will be disbursed to eligible startups through eligible incubators across India

DPIIT

Department for Promotion of Industry and Internal Trade

Nodal Department

EAC

Experts Advisory Committee

Government Representatives & Industry Experts

Incubators

Govt assisted/Not-Govt assisted Incubators

Operational for atleast 2-3 years

Startups

DPIIT-recognised Startups

Incorporated less than 2 years ago

Scale up your startup with Startup India Seed Fund Scheme

Your journey of seed fund starts here.
Complete the application to initiate the journey

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