UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups
A non-dilutive matching grant from the Government of Uttar Pradesh that covers up to 40% of a Deep Tech startup's verified R&D spend, recovered as a 3% revenue royalty only after annual revenue crosses ₹1 crore.
- Funding amount
- Varies by program
- Funding type
- Debt / Loan
- Provider
- Government of Uttar Pradesh (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The UP R&D Matching Grant is a state incentive from the Government of Uttar Pradesh, offered under the UP Startup Policy. It lets Deep Tech founders in the state claim a matching contribution against the money they actually spend on research and development, with support capped at 40% of that documented spend.
Deep tech ventures typically burn through large sums long before a product reaches the market. This instrument is built to absorb part of that early risk, narrowing the gap between a promising lab-stage idea and a commercially viable product, and helping such companies reach the market faster.
Two design choices make it notably founder-friendly. The money is non-dilutive, so founders keep their full stake. And repayment is tied to commercial performance rather than a fixed clock — it comes back as a 3% revenue royalty, and only once annual revenue passes ₹1 crore. If the product never commercialises, nothing has to be repaid.
Alongside the cash, the scheme sits within the wider regulatory and policy support framework available to startups registered under the UP Startup Policy.
Highlights
- Matches up to 40% of verified R&D expenditure as a cash grant
- Non-dilutive — no equity is taken from founders
- Recovered as a 3% revenue royalty, starting only after annual revenue exceeds ₹1 crore
- Non-repayable if the product fails to commercialise
- Open to Deep Tech startups operating in Uttar Pradesh
- Rolling / always-open applications
Who can apply
Two conditions carry the most weight here.
- Your venture must be a Deep Tech startup operating in Uttar Pradesh.
- You must be able to produce verifiable evidence of R&D expenditure.
The policy takes a broad view of what counts as Deep Tech and does not name specific industries or sectors, so eligibility rests on the nature of the work — advanced technology development backed by substantial research — rather than on a fixed list. If your R&D spend can be independently verified, you can apply.
The published scheme does not set out separate entity-type, stage or founder-profile requirements beyond the two conditions above. DPIIT recognition may also be asked for as part of your application.
UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
UP R&D Matching Grant — 40% R&D Cover for Deep Tech 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
The core support is a matching contribution worth up to 40% of your verified R&D expenditure, available as cash.
- Non-dilutive: no equity changes hands, so founder shareholding stays intact.
- Repayment is structured as a 3% revenue royalty.
- The royalty only begins once annual revenue crosses ₹1 crore.
- If the product fails to commercialise, the amount is not repayable.
No ceiling rupee figure is stated, because the grant is calculated from your own R&D costs. Cash support is paired with the regulatory and policy backing available to startups under the UP Startup Policy. Following verification and approval, the grant is expected to be released in tranches tied to R&D milestones.
About the provider
UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups is offered by Government of Uttar Pradesh, 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.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Every application is screened first for two things: whether the venture genuinely qualifies as deep tech, and whether the claimed R&D spend holds up.
- Screening: the startup's deep tech character and its R&D expenditure are verified.
- Committee review: a selection committee drawn from government, academia and industry weighs the technological innovation, market potential and expected impact of the R&D project.
- Presentation or interview: shortlisted startups may be invited to present, explaining their technology and business model in more depth.
- Final decision: a comprehensive assessment across all of these factors, with support directed to the most high-potential, impactful deep tech initiatives.
Grants that clear this process are disbursed after verification, typically in instalments mapped to R&D milestones.
Documents you’ll need
Before you apply to UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups, keep the following documents ready:
- 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.
Frequently asked questions
How much funding does the UP R&D Matching Grant actually provide?
The state matches up to 40% of your verified R&D expenditure. Because the contribution is calculated from your own documented costs, no maximum rupee amount is stated in the scheme — the more legitimate R&D spend you can evidence, the larger the matching support.
Which startups can apply?
Eligibility comes down to two things. You must be a Deep Tech startup operating in Uttar Pradesh, and you must be able to show verifiable R&D expenditure. There is no separate list of approved industries, entity types or founder profiles laid out in the scheme.
Do I have to give up equity to receive this funding?
No. The instrument is non-dilutive, which means founders retain their full equity in the company. There is no equity stake taken by the government in exchange for the funding.
Is the money a grant, or does it have to be repaid?
It is a non-dilutive matching grant with a repayable component. Once your startup's annual revenue crosses ₹1 crore, a royalty equal to 3% of revenue applies. If your product does not commercialise, the grant becomes non-repayable.
When does repayment start?
Only after your startup achieves annual revenue of more than ₹1 crore. Because repayment is pegged to a share of revenue rather than a fixed schedule, the obligation scales with how well the business is actually doing.
What is the application deadline?
There isn't one. Applications run on a rolling, always-open basis, so you can apply whenever your R&D documentation is ready.
How do I apply for the UP R&D Matching Grant?
Applications go through the official online portal at https://startinup.up.gov.in/Registration, or via designated nodal agencies under the UP Startup Policy. The policy document (Section 7.A.3.iii) sets out the specific application process to follow.
What documents will I need to submit?
Prepare your company registration, a detailed R&D project proposal, records of R&D expenditure, and projected commercialisation plans. DPIIT recognition of your startup may also be required as part of the pack.
How are applications evaluated?
There is first a screening stage that confirms the deep tech nature of the venture and the authenticity of the claimed R&D spend. A selection committee with members from government, academia and industry then assesses the technological innovation, market potential and impact of the project. Shortlisted applicants may be called for a presentation or interview before a final decision is made.
Is the grant limited to certain deep tech industries?
The policy defines Deep Tech broadly and does not name particular industries. As long as your startup is doing significant R&D on advanced technologies and that expenditure can be verified, you may be eligible.
Is DPIIT recognition required for UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups, though having it can strengthen your application and unlock other benefits.
Who is eligible to apply for UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups?
UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups is open to startups at any stage. It is open to startups registered anywhere in India.
Who offers UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups?
UP R&D Matching Grant — 40% R&D Cover for Deep Tech Startups is offered by Government of Uttar Pradesh, a government body. It is provided as non-dilutive funding.
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