Madhya Pradesh Startup Policy 2022: Investment-Linked Assistance — Frequently Asked Questions

This program, administered by the Department of MSME, Government of Madhya Pradesh, offers a financial top-up to startups that have successfully secured investment from SEBI or RBI-recognized institutional investors or angel networks. It aims to boost the state's startup ecosystem.

Startups can receive a maximum of ₹15,00,000 for each instance of investment. This assistance can be availed across up to four funding stages, potentially totaling a maximum of ₹60,00,000 in support.

Applications for the Investment-Linked Assistance are accepted on a rolling basis, meaning there is no fixed deadline. Startups can apply as and when they secure eligible institutional investments.

Eligible applicants are DPIIT-recognized startups that are officially registered and actively operating their core business activities within Madhya Pradesh. They must also have secured and received investment from a SEBI or RBI-recognized institutional investor or angel network.

Yes, holding valid recognition from the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, is a mandatory eligibility criterion for this program.

No, this program provides a grant in the form of an investment top-up. It is non-dilutive, meaning the government does not take any equity stake in the startup.

Absolutely. Women-led startups, defined as those where women founders collectively hold more than 50% equity, receive an additional 20% bonus on top of the standard assistance for each funding instance.

The investment must come from a SEBI or RBI-registered institutional investor. This includes Alternate Investment Funds (AIFs), Venture Capital (VC) firms, recognized angel networks, or other institutional investors officially recognized by these regulatory bodies.

Applicants need to submit a signed funding agreement with the institutional investor and verifiable proof of fund receipt. This proof can include a Foreign Inward Remittance Certificate (FIRC) if the investment is from outside India, or bank transaction statements demonstrating the successful transfer of funds.

Once you have secured and received investment from a qualified investor, you can submit the necessary documentation through the official MP Startup portal at https://startup.mp.gov.in/.

Madhya Pradesh Startup Policy 2022: Investment-Linked Assistance is offered by Department of MSME, Government of Madhya Pradesh, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.