Startup India Seed Fund Scheme (SISFS)
Funding programme

Startup India Seed Fund Scheme (SISFS)

Financial assistance for early-stage startups to validate ideas, build prototypes, run product trials and enter the market — helping them reach a stage where they can raise investments or secure commercial loans.

Objective

SISFS aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. The scheme helps startups graduate to a level where they can raise investments from angel investors or venture capitalists, or seek loans from commercial banks or financial institutions.

Over the next 4 years, the scheme is expected to support an estimated 3,600 startups through 300 incubators.

Seed Fund Support

Grants

Up to ₹20 Lakhs as a grant for:

  • Validation of proof of concept
  • Prototype development
  • Product trials

The grant is disbursed in milestone-based instalments — for example, prototype completion, product testing and readiness for market launch.

Debt / Convertible Debentures

Up to ₹50 Lakhs as investment for:

  • Market entry
  • Commercialization
  • Scaling up

A startup can avail seed support in the form of both grant and debt/convertible debentures — each once, as per scheme guidelines.

Eligibility

  • A startup recognized by DPIIT, incorporated not more than 2 years ago at the time of application.
  • Business idea to develop a product or service with market fit, viable commercialization and scope for scaling.
  • Uses technology in its core product/service, business model, distribution model or methodology.
  • Preference to startups with innovative solutions in sectors such as social impact, waste & water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil & gas, textiles, etc.
  • Has not received more than ₹10 Lakhs of monetary support under any other Central/State Government scheme (excluding prize money, subsidised workspace, founder stipend, access to labs or prototyping facilities).
  • At least 51% shareholding by Indian promoters at the time of application to the incubator, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
  • Can avail seed support in the form of grant and debt/convertible debentures each once, as per scheme guidelines.

Application of Fund Support

Seed fund shall not be used by startups for creation of physical facilities. It must be utilized strictly for the purposes for which it is granted.

Grant usage

  • Validation of proof of concept
  • Prototype development
  • Product trials

Debt / Convertible debenture usage

  • Market entry
  • Commercialization
  • Scaling up

Application Process

An online call for applications is hosted on an ongoing basis on the Startup India portal (portal opening soon). DPIIT-recognized startups can log in using their Startup India credentials to apply. The process is completely online — no physical submission of documents is required.

Startups can apply to up to 3 different incubators of their choice. Funding will be provided by the incubator that ultimately selects the startup with the highest preference:

  • If Preference 1 and Preference 2 incubators both select the startup, funding comes from Preference 1.
  • If Preference 1 rejects but Preference 2 selects, funding comes from Preference 2, and so on.

Evaluation & Selection

Eligible applications are evaluated by the Selection Committee on the basis of:

  • Need for the idea
  • Feasibility
  • Potential impact
  • Novelty
  • Team
  • Fund utilization plan
  • Additional parameters
  • Presentation

The committee evaluates submissions and presentations and selects startups for Seed Fund within 45 days of receiving the application. Selected startups receive funding under the incubator that selects them as beneficiaries as per their preference.

The incubator signs a legal agreement with each selected startup before the first disbursement. Startups must submit a final report and audited utilization certificate at the end of the project.

Progress Reporting

Selected startups must share progress against key parameters in all reports submitted to the incubator, including:

  • Progress of proof of concept
  • Progress of prototype development
  • Progress of product development
  • Progress of field trials and market launch
  • Quantum of loan, angel or VC funding raised
  • Jobs created by the startup
  • Turnover of the startup
  • Any other appropriate parameter

Re-application

An applicant can apply to SISFS again after 3 months of receiving a rejection. This buffer period ensures that the startup has addressed the feedback received from incubators and is better prepared for consideration in the next round.

Apply Now DPIIT-recognized startups can apply through the Startup India portal once the scheme is live.