The Startup India Seed Fund Scheme (SISFS) was launched by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry in April 2021. The goal is to provide financial assistance to early-stage startups that are in the proof-of-concept, prototype development, or product trials stage but struggle to raise capital due to a lack of assets or traction.
Objective of SISFS
The primary aim is to:
- Support innovative startups at a nascent stage.
- Enable them to develop prototypes, run pilots, or conduct product testing.
- Help them become investment-ready for later-stage funding from angel investors or VCs.
Total Allocation and Duration
- ₹945 crore allocated for 4 years (2021–25)
- Expected to support over 3,600 startups and benefit 300+ incubators across India
Who Can Apply?
Eligibility for Startups:
- Recognized by DPIIT as a startup
- Not more than 2 years old at the time of application
- Should have a business idea that is innovative, tech-driven, and scalable
- Not received more than ₹10 lakh of funding from other government schemes
- Indian promoters must hold 51% or more equity at the time of application
Eligibility for Incubators:
- Must be a legal entity and operational for at least 2 years
- Must have facilities to host at least 25 startups
- Should have a track record of supporting or mentoring startups
- Must be government-recognized or supported by an academic institution
Funding Support
Startups can receive funding in two ways:
- Grant of up to ₹20 lakh:
For validation of Proof of Concept (PoC), prototype development, or product trials. - Seed funding of up to ₹50 lakh:
As investment (convertible debentures or debt-linked instruments) for market entry, commercialization, or scaling.
The funds are routed through incubators, which evaluate, shortlist, and mentor startups.
How to Apply
- Register on Startup India Portal:
https://www.startupindia.gov.in/ - Get DPIIT recognition (mandatory)
- Visit the Startup India Seed Fund Scheme portal:
https://seedfund.startupindia.gov.in/ - Fill application with pitch deck, business plan, team details, and funding requirement
- Choose incubators from the list available, each incubator has its own evaluation process
- Await shortlisting and pitch presentation if selected
Benefits of SISFS
- Boosts innovation by reducing early-stage funding challenges
- Encourages first-generation entrepreneurs
- Promotes technology-driven and socially impactful solutions
- Connects startups with mentors, industry experts, and incubators
- Enhances the startup ecosystem in Tier II and Tier III cities
Key Points to Remember
- Fund is non-repayable in the case of grants
- Seed funding component may come with conditions on equity or be linked to milestones
- Startups must show commitment and readiness for scaling up
- Timely utilization and reporting is necessary to receive further support
Useful Links
📍 Official Portal: https://seedfund.startupindia.gov.in/
📍 DPIIT Recognition: https://www.startupindia.gov.in/
📍 Email: sisfs-dpiit@gov.in
Conclusion
The Startup India Seed Fund Scheme is a stepping stone for Indian entrepreneurs to turn ideas into real businesses. Whether you’re building an AI solution, a health-tech device, or a sustainable packaging business, this scheme offers the funding, mentorship, and incubation support to help you succeed.
