Startup India Seed Fund Scheme (SISFS) For Startups — Frequently Asked Questions

Under the Startup India Seed Fund Scheme, startups can receive a seed grant of up to ₹20 lakh for proof of concept and prototype development. Additionally, they can avail unsecured debt or convertible debentures of up to ₹50 lakh for market entry and scaling, making the total potential support up to ₹70 lakh.

No, the Startup India Seed Fund Scheme provides support in the form of grants and unsecured debt/convertible debentures. These funding instruments are non-dilutive, meaning the scheme does not require startups to give up any equity stake in their company.

Yes, DPIIT recognition under the Startup India initiative is a mandatory eligibility criterion. Your startup must be officially recognized by DPIIT before you can apply for the Startup India Seed Fund Scheme.

Eligible startups must be DPIIT-recognised, incorporated no more than two years prior to applying, and have a business idea with clear market fit and scaling potential. Technology must be a core component of their offering. Startups also must not have received over ₹10 lakh in monetary support from other government schemes (excluding prize money, workspace, lab access, and stipends), and at least 51% shareholding must be held by Indian promoters. Only Private Limited Companies, LLPs, or Registered Partnerships are eligible.

Applicants generally need to provide their DPIIT recognition certificate, certificate of incorporation, PAN card and Aadhaar of founders, shareholding pattern (showing at least 51% Indian promoter holding), a business plan or pitch deck, prototype details or proof of concept documentation, financial projections, a fund utilization plan, and bank account details (such as a cancelled cheque or statement).

Startups should apply directly to one of the DPIIT-approved incubators participating in the scheme. You can find a list of these incubators and the application portal on the official Startup India Seed Fund website.

No, there is no specified application deadline for the Startup India Seed Fund Scheme. Applications are accepted on a rolling basis through the network of approved incubators, allowing startups to apply when they are ready.

Yes, you are permitted to apply to up to three participating incubators at the same time. If multiple incubators select your startup for funding, the funding will be disbursed by the highest-preference incubator that has selected you.

No, there are absolutely no fees at any stage of the Startup India Seed Fund Scheme, including application, selection, disbursement, and monitoring. Incubators are strictly prohibited from charging any fees to applicants or beneficiaries.

Seed funds provided under the scheme cannot be used for creating physical facilities or infrastructure. The funds must be strictly utilized for the purposes outlined in the agreement, which typically include research and development, product development, trials, or market entry activities.

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.