Startup India Seed Fund Scheme (SISFS): eligibility, grant amounts and how to apply

The Startup India Seed Fund Scheme (SISFS) puts government money into very early startups, but not directly: it is paid out through incubators that the scheme has approved. For a founder, that changes the question from "how do I apply to the government" to "which incubator will back me". This guide explains how it works.

• Startup India Seed Fund SchemeUp to ₹20 lakh grant + ₹50 lakh debt/convertibleGrant · DPIIT, Government of India · India

What it gives

The scheme has two parts, and a startup can take each once:

• Up to Rs. 20 lakh as a grant for validating a proof of concept, developing a prototype or running product trials. It is paid in milestone-based instalments.
• Up to Rs. 50 lakh as investment for market entry, commercialisation or scaling up, through convertible debentures, debt or debt-linked instruments. Because the startups are so early, this is described as unsecured with no promoter or third-party guarantee.

Funds cannot be used to create facilities.

Who qualifies

The scheme guidelines, as summarised by several sources, set these conditions. Check them against the current guidelines on the official portal before you apply:

1. The startup must be DPIIT-recognised: see the DPIIT recognition guide.
2. It should be no more than two years old at the time of applying.
3. Turnover should not have exceeded Rs. 100 crore in any financial year, and the business should not have been formed by splitting or reconstructing an existing one.
4. It should not have received more than Rs. 10 lakh in monetary support under another central or state government scheme.
5. Indian promoters should hold at least 51% of the shares at the time of applying.
6. Individual entrepreneurs without a company are not eligible.

The scheme is sector-agnostic, though some sources note a preference for areas such as healthcare, energy and agriculture.

How it works in practice

1. Get DPIIT recognition and an account on the Startup India portal.
2. Pick incubators. The portal lets you apply to an incubator that has been approved to disburse the funds. Secondary sources say you can apply to up to three at once, ranked by preference.
3. The incubator's Incubator Seed Management Committee assesses your application, with a focus on need, feasibility, impact, novelty, team strength and your plan for using the funds.
4. If approved, the incubator pays the grant in milestones and tracks your progress.

Because each incubator makes its own decision, build your application around what that incubator cares about: its sector focus, its programmes and the support it offers.

Prepare before you apply

• A clear milestone plan for the grant: what the prototype or pilot will show, and when.
• A short budget that avoids facilities, which the scheme excludes.
• Your cap table, to show Indian promoter shareholding.
• A list of other government support you have received, to stay within the Rs. 10 lakh limit.

Other Indian grants to consider

SISFS is only one route. Others tracked on CreditBase include the biotechnology grant BIRAC BIG, the hardware prototype grant NIDHI-PRAYAS and the state grant Karnataka ELEVATE.

• BIRAC BIG GrantUp to ₹50 lakhGrant · BIRAC · India
• NIDHI-PRAYASUp to ₹10 lakh prototype grantGrant · DST, Government of India · India
• Karnataka ELEVATE / ELEVATE NxTUp to ₹50 lakh (₹1 crore for deep tech, NxT)Grant · Government of Karnataka · India
• MeitY SAMRIDHUp to ₹40 lakh matching investmentAccelerator · MeitY Startup Hub · India

See startup grants in India and startup credits in India for the wider picture.

Sources

• Startup India Seed Fund Scheme portal
• Startup India: DPIIT recognition

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