Startup India Seed Fund Scheme (SISFS)

About this grant

The Startup India Seed Fund Scheme (SISFS) is a flagship financial assistance initiative launched by the Government of India to address the early-stage capital gap faced by innovative startups. Administered by the Department for Promotion of Industry and Internal Trade (DPIIT), the scheme aims to support startups in validating their ideas, developing prototypes, conducting product trials, entering markets, and ultimately achieving commercialization. Early-stage startups often struggle to raise capital from venture capitalists or angel investors because they have not yet proven their concept or built a working product. SISFS addresses this critical gap by providing seed-stage financial support that enables entrepreneurs to test their innovations and reach a stage where they can attract private investment. The scheme operates through a network of eligible incubators across India that act as implementing partners. Instead of startups receiving funding directly from the central government, DPIIT allocates funds to approved incubators, which then evaluate and distribute seed support to startups through a structured selection process. This decentralized model allows domain experts, investors, and incubator managers to assess startup potential closely and provide both capital and strategic mentorship. Under the scheme, startups can receive financial assistance in two different forms depending on their stage of development. A grant of up to INR 20 lakh is provided for activities such as proof of concept validation, prototype development, and product testing. For startups ready to enter the market or scale operations, funding of up to INR 50 lakh may be provided through debt instruments or convertible debentures. Grant funding is disbursed in milestone-based tranches tied to product development progress. Beyond financial support, participating incubators provide access to mentorship, technical guidance, investor networks, and infrastructure support that helps founders strengthen their business models and prepare for further investment rounds. The scheme aims to support approximately 3,600 entrepreneurs through around 300 incubators.

Eligibility requirements

All of the following criteria must be met:

• Startup must be recognized by DPIIT under the Startup India initiative
• Startup must be incorporated not more than 2 years before the date of application
• Startup must have a business idea that demonstrates market fit, viable commercialization potential, and scalability
• Startup must use technology as a core component of the product, service, business model, distribution model, or methodology
• The startup should not have received more than INR 10 lakh in monetary support from any other Central or State Government scheme (excluding prize money, subsidized workspace, or access to facilities)
• At least 51% of shareholding in the startup must be held by Indian promoters at the time of application
• Startup must be incorporated as a Private Limited Company, Limited Liability Partnership, or Registered Partnership
• Individual entrepreneurs are not eligible to apply directly
• Startups may apply to up to three participating incubators simultaneously
• Preference may be given to startups working in areas such as social impact, waste management, water management, financial inclusion, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, textiles, and similar innovation-driven sectors
• Application Process
• Startups submit an online application through the Startup India Seed Fund portal using their DPIIT recognition credentials
• During the application process, startups can select up to three incubators participating in the scheme according to their preference
• Submitted applications are shared with the selected incubators for evaluation
• Incubators verify eligibility criteria and shortlist startups for further evaluation
• Shortlisted startups may be invited to present their business proposal before the Incubator Seed Management Committee (ISMC)
• The ISMC evaluates startups based on parameters such as problem relevance, feasibility, potential impact, novelty, team capability, and fund utilization plan
• Selected startups are approved for seed funding and the incubator determines the funding structure and milestones
• Grant funding is released in milestone-based installments while debt or convertible instruments are structured based on agreed financing terms
• Incubators monitor startup progress and release subsequent tranches based on milestone achievement
• Startups are typically selected within approximately 45 days of application review by the incubator

What the funding covers

• Funding: ₹20 Lakhs

How to apply

1. 1Apply online at https://www.startupgrantsindia.com/startup-india-seed-fund-scheme-dpiit-416

Application tips