Scaleup Seed Fund

The Scaleup Seed Fund is a Government of Kerala initiative managed by the Kerala Startup Mission (KSUM), the state's nodal agency for entrepreneurship development. This fund provides collateral-free debt to help innovative tech startups scale their operations. The debt is structured through instruments such as Convertible Compulsorily Debentures (CCDs) or Compulsorily Convertible Preference Shares (CCPS).

Eligible startups can receive up to ₹25 lakhs, disbursed in milestone-linked installments. The funds can be utilized for product enhancement, business expansion, marketing, and obtaining necessary licenses or certifications. The program aims to bridge the gap between early-stage investments and larger venture capital, helping startups establish a strong market presence and attract subsequent funding rounds, thereby contributing to Kerala's economic development.

• Collateral-free debt up to ₹25 lakhs per startup.
• Open only to DPIIT-recognised Private Limited companies registered in Kerala with KSUM Unique ID.
• Requires minimum ₹25 lakh revenue in last 4 quarters or ₹25 lakh angel/VC investment.
• Milestone-based disbursement to ensure efficient use of funds.
• No equity dilution for founders.
• Mentorship and infrastructure support from KSUM.

Only Private Limited companies registered in Kerala with an active MCA registration are eligible. Startups must have DPIIT recognition and a valid KSUM Unique ID. The venture must be focused on developing an innovative product or technology — purely service-based or trade businesses are generally ineligible. Revenue requirement: the startup must show at least ₹25 lakhs in product revenue over the last four quarters OR have secured at least ₹25 lakhs from an angel network or VC firm. Additionally, at least ₹5 lakhs in revenue must have been earned in the quarter immediately preceding the application. Preference is given to startups showing consistent month-on-month improvement. Businesses with pending government dues or those blacklisted by any government agency are not eligible.

Scaleup Seed Fund is open to startups at the revenue stage. The programme is targeted at startups registered in Kerala. Applicants should be registered as private limited. Applicants must hold DPIIT (Startup India) recognition.

Scaleup Seed Fund accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

• Collateral-free debt of up to ₹25 lakhs per startup.
• Disbursed through debentures (CCDs) or preference shares (CCPS) in milestone-linked tranches.
• Funds can be used for product enhancement, business expansion, marketing, and acquiring licenses/certifications.
• No equity dilution for founders.
• KSUM provides mentoring and infrastructure support alongside funding.
• Helps bridge the gap to larger venture capital investments.

Scaleup Seed Fund is offered by Kerala Startup Mission, a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

The evaluation process begins with an online application comprising a Business Profile (market analysis, team details, financial projections) and a Seed Proposal (outlining fund usage, milestones, expected impact). KSUM performs an initial review to check eligibility and alignment. Shortlisted candidates are invited for a virtual call to discuss their proposal in detail. Following that, selected startups present a final pitch before the Scale-up Seed Expert Committee, a panel of industry experts and investors. The committee assesses innovation, market potential, business model, team strength, and scalability. Based on their recommendations, funds are released in milestone-tied installments, ensuring responsible usage.

Before you apply to Scaleup Seed Fund, keep these documents ready — note the program-specific requirements at the top:

• DPIIT (Startup India) recognition certificate — mandatory for this program
• Certificate of incorporation showing your startup is registered as private limited
• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Scaleup Seed Fund is best suited for revenue-stage startups in India seeking non-dilutive funding of ₹25L. Because DPIIT recognition is mandatory, it is aimed at startups already registered under Startup India. If that describes your startup, review the eligibility criteria above before applying.