Sarkari Yojana
Startup India Seed Fund Scheme- For Startups
About Startup India Seed Fund Scheme- For Startups
The Department for Promotion of Industry and Internal Trade (DPIIT) launched the Startup India Seed Fund Scheme (SISFS) on 19th April 2021, with an outlay of INR 945 Crore, to give startups financial assistance for Proof of Concept work, prototype development, product trials, market entry, and commercialization. Eligible startups apply through the Startup India portal, and the Seed Fund reaches selected startups via eligible incubators located across India. > Objective Of The Scheme:
SISFS aims to fund startups at the Proof of Concept, prototype development, product trial, market-entry and commercialization stages, helping them reach a level where they can attract investment from angel investors or venture capitalists, or secure loans from commercial banks and financial institutions. > Features:
- Applications from Incubators and Startups are invited all year round
- The scheme is sector-agnostic
- Physical incubation is not mandatory
- It operates as a PAN-India startup programme
- Startups may apply to up to 3 incubators at the same time
Scheme Overview
Central Government
Ministry Of Commerce And Industry
Department For Promotion Of Industry And Internal Trade
Business Entity
19 Apr 2021
Scheme Details
Eligibility Requirements
To qualify for Startup India Seed Fund Scheme- For Startups, applicants must satisfy the following conditions:
A startup applying under the Startup India Seed Fund Scheme must satisfy the following criteria:
It must be a DPIIT-recognized startup incorporated no…
It must be a DPIIT-recognized startup incorporated no more than 2 years before the date of application.
It must have a business idea to build…
It must have a business idea to build a product or service with market fit, viable commercialization potential, and room for scaling.
Technology must feature in its core product, service,…
Technology must feature in its core product, service, business model, distribution model, or methodology for solving the targeted problem.
Preference is given to startups offering innovative solutions…
Preference is given to startups offering innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, and textiles.
It must not have received monetary support exceeding…
It must not have received monetary support exceeding ₹10 lakhs under any other Central or State Government scheme — excluding prize money from competitions and grand challenges, subsidized working space, a founder's monthly allowance, or access to labs or a prototyping facility.
Indian promoters must hold at least 51% shareholding…
Indian promoters must hold at least 51% shareholding in the startup at the time of applying to the incubator, as required under the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
A startup may avail seed support in the…
A startup may avail seed support in the form of grants and debt/convertible debentures, each just once, as per the scheme's guidelines.
Benefits Provided
Startup India Seed Fund Scheme- For Startups provides the following benefits to eligible applicants:
The incubator disburses Seed Funds to an eligible startup as follows:
Up to ₹20 Lakhs as a grant to…
Up to ₹20 Lakhs as a grant to validate Proof of Concept, prototype development, or product trials, released in milestone-based instalments tied to stages such as prototype development, product testing, or building a market-ready product.
Up to ₹50 Lakhs of investment for market…
Up to ₹50 Lakhs of investment for market entry, commercialization, or scaling, through convertible debentures, debt, or debt-linked instruments.
Seed funds must never be used to create…
Seed funds must never be used to create facilities and must be applied strictly to the purpose for which they were granted. Note 01: Grants to startups by an incubator cannot exceed 20% of the total grant given to that incubator. Interest earned (as defined under the GFR) on funds lying unutilized with the incubator is also accounted for and adjusted at the time of DPIIT's next release. Note 02: Where startups are supported through convertible debentures, debt, or debt-linked instruments, the interest rate charged cannot exceed the prevailing repo rate. The tenure is fixed by the incubator at the time of sanctioning the loan and cannot exceed 60 months (5 years), with a moratorium of up to 12 months available. Given the startups' early stage, such funding remains unsecured, with no guarantee required from the promoter or a third party. Note 03: Before releasing the first instalment, the incubator must execute a legal agreement with the selected startup, spelling out the necessary terms and conditions, including the Seed Fund milestones. Note 04: Further disbursements depend on achieving the milestones previously agreed between the startup and incubator. Note 05: Funds are credited to the startup's company bank account. Note 06: For grants, the first instalment to a selected startup is released within 60 days of receiving its application; subsequent instalments require the startup to submit an interim progress update and utilization certificate. Note 07: At the end of the project period, the startup must submit a final report and an audited utilization certificate; for ventures that fail, the entrepreneur must share the reasons for failure and key learnings in the report, along with the utilization certificate for the funds used. Note 08: Neither the incubator nor its staff may charge applicants or beneficiaries any fee, in cash or kind, for selection, disbursement, incubation, or monitoring under the scheme. Note 09: DPIIT maintains a grievance cell for the scheme to address applicant concerns such as delayed application evaluation or delayed disbursement by incubators.
Documents Required
Applicants should keep the following documents ready before starting the application:
Board resolution, authorisation letter, or power of attorney
Board resolution, authorisation letter, or power of attorney.
PAN card
PAN card.
GST registration number
GST registration number.
Aadhaar card
Aadhaar card.
Details of the bank account
Details of the bank account.
Certificate of incorporation or the partnership deed
Certificate of incorporation or the partnership deed.
Statements of financial position
Statements of financial position.
A short video introducing the startup and explaining…
A short video introducing the startup and explaining its product, service, or business model.
Any other documents that may be required
Any other documents that may be required.
2021-04-19
How to Apply
Online Application
Applicants can apply for Startup India Seed Fund Scheme- For Startups through the online application process outlined below.
Application Procedure:
An online call for applications runs continuously on…
An online call for applications runs continuously on the Startup India portal.
A DPIIT-recognized startup can apply through the official…
A DPIIT-recognized startup can apply through the official Startup India Portal (https://seedfund.startupindia.gov.in/).
On the home page, click 'Apply Now' and…
On the home page, click 'Apply Now' and proceed to 'Apply Now' for startups.
The startup logs in using the credentials created…
The startup logs in using the credentials created during its startup recognition process to apply under the scheme and submit the application form.
Applicants can seek seed funds from up to…
Applicants can seek seed funds from up to three incubators, listed as disbursing partners under the scheme, in order of preference.
Note 01: The entire submission process is online, with no physical submission of documents required.
Note 02: All applications received are shared online with the respective incubators for further evaluation.
Note 03: Applicants may be asked to provide details such as their team profile, problem statement, product/service overview, business model, customer profile, market size, funds required, and a projected utilization plan.
Note 04: There is no application fee for the scheme. Even once an incubator selects a startup for assistance, the startup cannot be charged any fee, and neither the incubator nor its staff may charge applicants or beneficiaries any fee, in cash or kind, for selection, disbursement, incubation, or monitoring.
Selection of Startups:
1. Each incubator applying under the Startup India Seed Fund Scheme forms an Incubator Seed Management Committee (ISMC) of experts who evaluate and select startups for seed support. The ISMC comprises:
A Nominee of the Incubator (Chairman)
A Representative from the State Government's Startup Nodal Team
A Representative of a Venture Capital Fund or Angel Network
A domain expert from Industry
A domain expert from academia
Two Successful Entrepreneurs
Any other relevant stakeholder
The EAC approves the final composition and members of each incubator's ISMC, which is a key factor in selecting incubators.
2. Startups are selected through an open, transparent and fair process, which includes:
a) Eligible applications being evaluated by the ISMC on the following criteria:
Need for the Idea: market size, market gap addressed, whether it solves a real-world problem
Feasibility: how feasible and reasonable the technical claims are, the methodology used/proposed for PoC and validation, and the product development roadmap
Potential Impact: the customer demographic and the technology's effect on it, and any national importance
Novelty: the technology's USP and associated IP
Team: the team's strength and its technical and business expertise
Fund Utilization Plan: the roadmap for using the funds
Additional Parameters: any other parameters the incubator considers relevant
Presentation: overall assessment
b) The incubator may shortlist applicants for a presentation before the ISMC based on its evaluation
c) The ISMC evaluates applicants based on their submissions and presentations, selecting startups for Seed Fund within 45 days of receiving the application
d) Incubators provide real-time updates on the progress of startup evaluations to the Startup India portal
e) Selected startups receive funding from the incubator that selects them, based on the preference order shared during application (for instance, if incubators ranked Preference 1 and Preference 2 both select a startup, the Preference 1 incubator funds it; if Preference 1 rejects and Preference 2 selects, Preference 2 funds it, and so on)
f) Applicants can track their application's progress on the Startup India portal in real time
g) Rejected applicants are notified by email
h) An applicant rejected once may reapply afresh
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.