Startup India Seed Fund Scheme (SISFS) For Startups
Government seed grant up to ₹20L and debt up to ₹50L for DPIIT-recognised Indian tech startups under 2 years old. Rolling applications.
- Funding amount
- ₹20L – ₹50L (grant)
- Funding type
- Grant
- Provider
- Department for Promotion of Industry and Internal Trade (DPIIT) (Government)
- Application deadline
- Rolling
- Eligible stage
- Idea · Product
- Location
- Open to startups registered in India
- DPIIT recognition
- Required — the startup must hold DPIIT (Startup India) recognition
Overview
The Startup India Seed Fund Scheme (SISFS) is a Government of India initiative launched by DPIIT in April 2021, with a total corpus of ₹945 crore. The scheme targets early-stage startups that have a validated idea or early prototype but find it hard to attract angel or venture capital. It operates through a network of roughly 300 DPIIT-approved incubators across India. Funds are allocated by DPIIT to these incubators, which then evaluate applications and disburse money to selected startups. An Expert Advisory Committee oversees the process, and each incubator sets up an Incubator Seed Management Committee comprising domain experts, VCs, angel investors, state government nominees, and experienced entrepreneurs to pick the most promising ventures.
The scheme aims to support about 3,600 startups. As of December 2024, over 2,600 startups have received ₹467.75 crore in funding, with more than 1,200 women-led startups benefitting. The funding is a combination of a grant and unsecured debt (or convertible debentures), with no equity taken and no collateral required. The grant is for proof-of-concept, prototype development, or product trials, while the debt is for market entry, commercialisation, and scaling.
Eligibility is restricted to DPIIT-recognised tech-driven startups at the idea or MVP stage, incorporated less than two years before applying. The scheme is sector-agnostic but gives preference to startups in healthcare, agriculture, biotech, social impact, clean energy, waste management, water management, financial inclusion, education, mobility, defence, and space.
Highlights
- DPIIT-recognised Indian startups under 2 years old at idea or MVP stage are eligible.
- Grant up to ₹20 lakh for proof-of-concept / prototype development; debt up to ₹50 lakh for market entry / scaling.
- Unsecured loan (no collateral) at repo rate interest, up to 5-year tenure, 12-month moratorium.
- Apply to up to 3 incubators simultaneously through seedfund.startupindia.gov.in; no application fee.
- As of Dec 2024, support approved for over 2,600 startups worth ₹467.75 crore allocated.
Who can apply
Your startup must first obtain DPIIT recognition under the Startup India initiative. The company must have been incorporated no more than two years before the date of application. Your business idea must demonstrate strong market fit, commercial viability, and potential for scale. Technology should be a core element of your product, service, business model, or methodology. At least 51% of the shareholding must be held by Indian promoters at the time of application. The entity type must be a Private Limited Company, LLP, or Registered Partnership — sole proprietorships and individuals are not eligible. Your startup must not have received more than ₹10 lakh in monetary support from any Central or State Government scheme (excluding prize money, subsidised workspace, lab access, and founder allowances). Each startup can receive the grant and the debt/convertible debenture support once each.
Startup India Seed Fund Scheme (SISFS) For Startups is open to startups at the idea and product stage. It is open to startups registered anywhere in India. Applicants should be registered as llp, partnership and private limited. Applicants must hold DPIIT (Startup India) recognition.
- Eligible stage
- Idea · Product
- Location
- Open to startups registered in India
- Entity type
- Llp, Partnership, Private Limited
- DPIIT recognition
- Required — the startup must hold DPIIT (Startup India) recognition
Deadline & timing
Startup India Seed Fund Scheme (SISFS) For Startups 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.
What the funding covers
SISFS offers a seed grant of up to ₹20 lakh for proof-of-concept, prototype development, and product trials. It also provides unsecured debt or convertible debentures of up to ₹50 lakh for market entry, commercialisation, and scaling. The loans have an interest rate capped at the RBI repo rate, a tenure of up to 5 years, and a moratorium of up to 12 months. No collateral or personal guarantee is required. Funds are disbursed in milestone-based tranches directly to the startup's bank account. The total funding a startup can receive is ₹70 lakh (₹20L grant + ₹50L debt). There are no application fees at any stage. Additionally, selected startups benefit from incubation support and mentorship from the network of approved incubators.
About the provider
Startup India Seed Fund Scheme (SISFS) For Startups is offered by Department for Promotion of Industry and Internal Trade (DPIIT), a government body. As a government-backed grant, 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.
How to apply
Applications are submitted on the official portal. Confirm the current deadline and document checklist there before you start.
Selection process
After submitting an online application on the SISFS portal (seedfund.startupindia.gov.in) with up to three preferred incubators, the incubators perform an eligibility check and shortlisting process during Days 1–14. Shortlisted startups are evaluated by the Incubator Seed Management Committee (ISMC) between Days 14–30, considering market need, feasibility, impact, novelty, team strength, and fund utilisation plan. Between Days 30–40, startups may be called for a pitch or presentation before the ISMC. The final selection is communicated within 45 days of application submission. Rejected applicants receive an email notification and may reapply after 3 months.
After selection, a legal agreement is signed between the startup and the incubator before the first disbursement. The grant is released in milestone-based tranches, with subsequent tranches requiring an interim progress report and utilisation certificate. Application status can be tracked in real-time on the Startup India portal.
Documents you’ll need
Before you apply to Startup India Seed Fund Scheme (SISFS) For Startups, 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 llp and partnership
- 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.
Who this is best for
Startup India Seed Fund Scheme (SISFS) For Startups is best suited for idea and product-stage startups in India seeking non-dilutive funding of ₹20L – ₹50L. 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.
Frequently asked questions
How much total funding can I get under SISFS?
A startup can receive up to ₹70 lakh in total: a grant of up to ₹20 lakh for proof-of-concept, prototype development, and product trials, and debt or convertible debentures of up to ₹50 lakh for market entry and commercialisation. Each startup can avail each type once.
What is the application deadline?
The scheme is always open on a rolling basis, with no fixed deadline. Applications are accepted continuously as long as the scheme corpus lasts and can be submitted through the designated portal.
Who is eligible to apply from a sector perspective?
The scheme is sector-agnostic, meaning startups from any industry can apply. However, preference is given to startups working in healthcare, agriculture, biotech, social impact, clean energy, waste management, water management, financial inclusion, education, mobility, defence, and space.
What entity types are eligible for SISFS?
Only startups incorporated as a Private Limited Company, Limited Liability Partnership (LLP), or Registered Partnership are eligible. Sole proprietorships and individual applicants cannot apply.
Is DPIIT recognition mandatory, and how do I get it?
Yes, DPIIT recognition is mandatory before applying. You can obtain recognition online at the Startup India portal startupindia.gov.in.
Do I need MSME registration to apply?
MSME registration is not mentioned as a requirement for this scheme. It is not required or stated as a prerequisite.
Does SISFS take equity from my startup?
No. The funding is a grant and debt without taking equity. The government or incubator does not take ownership in your company through this scheme.
What documents are needed to apply?
You need to provide DPIIT recognition certificate, certificate of incorporation, PAN and Aadhaar of founders, shareholding pattern showing at least 51% Indian promoter holding, business plan or pitch deck, proof of concept or prototype details, financial projections with fund utilisation plan, and a cancelled cheque or bank statement.
Can I apply directly to an incubator, or only through the portal?
You must apply through the SISFS portal (seedfund.startupindia.gov.in) by selecting up to three preferred incubators. There is no physical submission. The portal handles the applications and shares them with your selected incubators.
How long does the selection process take?
Final selection is communicated within 45 days of applying. After that, a legal agreement is signed with the incubator before funds are disbursed in milestone tranches. Rejected applicants receive an email and can reapply after 3 months.
Who offers Startup India Seed Fund Scheme (SISFS) For Startups?
Startup India Seed Fund Scheme (SISFS) For Startups is offered by Department for Promotion of Industry and Internal Trade (DPIIT), a government body. It is provided as non-dilutive funding.
How do I apply for Startup India Seed Fund Scheme (SISFS) For Startups?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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