Startup India Seed Fund Scheme (SISFS)

The scheme assists startups at the early stages of development of proof of concept, prototypes, product trials, market entry, and commercialization. The SISFS offers startups a seed fund of upto INR 20 lakhs as grant for validation of Proof of Concept and upto INR 50 lakhs of investment for market entry, commercialization or scaling up through convertible debentures or debt or debt-linked instruments, at the rate of interest of not more than prevailing repo rate. The program allows startups to graduate to a level where they can raise investments or loans from angel investors, venture capitalists, or commercial banks. It is supported by Department for Promotion of Industry and Internal Trade (DPIIT) and Ministry of Commerce and Industry.

Eligibility Criteria

• The startup must be recognized by DPIIT and incorporated not more than 2 years ago at the time of application.
• The startups should have a business idea for developing a product or service that fits the market, is commercially viable, and has potential to scale.
• The startup should be using technology in its core product or service, or business model, or distribution model, or methodology to solve the problem being targeted.
• Startups with innovative solutions in social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, rails, oil and gas, textiles, etc., would be preferred.
• Startup should not have received more than INR 10 lakh of monetary support under any other Central or State Government scheme. Prize money, subsidized working space, founder monthly allowance, access to labs, and prototyping facilities are excluded.
• Shareholding by Indian promoters in the startup is at least 51% at the time of application to an incubator.
• Startup will not receive seed support more than once.

Application Proces

Applicants will submit their applications online on an ongoing basis.

Selection Process

• Incubator Seed Management Committee (ISMC) will further evaluate applications submitted online.
• As a final decision, ISMC will consider the parameters set by SISFS prior to allocating startup funding.
• Final Due diligence and formation of term sheet, financing structure and agreement
• Issue of Sanction Order & Fund after the agreement