Venture Capital Fund for Scheduled Castes (VCF-SC) — ₹10L to ₹15Cr

The Venture Capital Fund for Scheduled Castes (VCF-SC) is a central government scheme administered by the Ministry of Social Justice and Empowerment, Government of India. It exists to remove the capital barrier that stops many Scheduled Caste founders from building and scaling a business, and it favours ventures that show innovation or lean on growth-oriented technology.

The ticket size is wide: anywhere between ₹10 lakh and ₹15 crore. Money can be structured in more than one way — as debt or convertible instruments carrying a concessional rate of interest, or as an equity investment where the exit is linked to valuation or to an 8% annual return. Which route is used depends on the project and on what the Investment Committee approves.

Financing is not the only thing on offer. VCF-SC also plugs gaps that commonly stall young businesses: shortfalls in working capital, and ideas being developed inside Technology Business Incubators. Applications run on a rolling basis with no closing date, and the scheme's stated aims are sustainable growth and job creation within the Scheduled Caste community.

• Ticket size: ₹10 lakh to ₹15 crore
• Debt or convertible route at 4% p.a.; 3.75% p.a. for SC women and disabled entrepreneurs
• Equity route targets an 8% annual return at exit
• Tenure up to 10 years, with a 36-month moratorium on debenture principal
• Working capital gap funding and up to ₹10 lakh/year for 3 years for TBI-incubated ideas
• Rolling applications, submitted through the online portal

VCF-SC is built for Scheduled Caste entrepreneurs who are either running a business or setting one up. Units working in manufacturing, services or allied sectors can apply, and that covers startups as well as ventures being incubated in Technology Business Incubators.

The controlling condition is shareholding. At least 51% of the company must be held by Scheduled Caste entrepreneurs, and those promoters must also retain management control. How long that shareholding has to be in place depends on the amount being sought:

• Requests of up to ₹50 lakh require the 51% SC shareholding to have been maintained for the past 6 months.
• Requests above ₹50 lakh require the same 51% SC shareholding to have been held for the past 12 months.

A newly incorporated company can qualify too, provided it succeeds an existing entity — such as a proprietorship or partnership firm — that already meets the 51% SC shareholding test and has the relevant 6 or 12 months of operation behind it.

There is a separate doorway for technology-led innovation. A new company with 51% SC shareholding may apply if it is backed by an incubation centre such as an IIT or an NIT, or if it holds patents or copyrights, or if its project has been sanctioned by a Government of India department.

In every case, documentary proof of Scheduled Caste status must be furnished by the entrepreneurs.

Venture Capital Fund for Scheduled Castes (VCF-SC) — ₹10L to ₹15Cr is open to startups at any stage. It is open to startups registered anywhere in India.

Venture Capital Fund for Scheduled Castes (VCF-SC) — ₹10L to ₹15Cr 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.

The headline figure is the range itself: assistance of ₹10,00,000 to ₹15,00,00,000, with the final amount decided on the merit of the project.

How the money can come in:

• Debt or convertible instruments at an interest rate of 4% per annum.
• A concessional 3.75% per annum for Scheduled Caste women entrepreneurs and entrepreneurs with disabilities.
• Equity investment, where the scheme targets a return of 8% each year or a higher value at exit.

Other terms and extras:

• Maximum tenure of up to 10 years. For debentures, principal redemption can be paused through a moratorium of up to 36 months.
• Working capital gap funding of up to 20% of the total assistance.
• Support for innovative ideas being nurtured in Technology Business Incubators, of up to ₹10 lakh per year for 3 years.
• For a first-time valuation and title search on property, the valuer's and lawyer's fees are covered.
• Assistance is released in tranches, and promoters are generally expected to bring in co-financing alongside the fund.

Project cost sharing works on a slab basis. Where assistance is up to ₹5 crore, the fund can meet up to 75% of the project cost and the promoters fund the remaining 25%. Where assistance is above ₹5 crore, the fund's contribution is capped at up to 50% of the project cost, with promoters and/or banks providing the balance.

Venture Capital Fund for Scheduled Castes (VCF-SC) — ₹10L to ₹15Cr is offered by Ministry of Social Justice and Empowerment, a government body. As a government-backed equity, it is publicly funded and open to eligible startups across India.

Screening Committee review — Proposals reach a screening committee first, which takes them up in first-come, first-served order and carries out a preliminary analysis.

Detailed appraisal — Proposals that clear the first cut are appraised thoroughly by officials of IFCI Venture Capital Funds Limited, or by representatives they authorise. This appraisal includes a physical visit to the project site.

Proposal prepared by the AMC — The Asset Management Company then puts together a detailed proposal for consideration.

Investment Committee decision — The committee takes the final call, which can be to sanction, defer or reject the proposal. It also fixes how much assistance the project will receive, based on merit.

Letter of Intent and term sheet — Companies that are approved are issued a Letter of Intent along with a term sheet.

Legal documentation, valuation and title search — Legal paperwork is executed, and valuation and title search reports are commissioned.

Disbursement — Funds are released in tranches once the sanctioned terms, pre-disbursement conditions and documentation are in place.

Before you apply to Venture Capital Fund for Scheduled Castes (VCF-SC) — ₹10L to ₹15Cr, 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.

Venture Capital Fund for Scheduled Castes (VCF-SC) — ₹10L to ₹15Cr is best suited for startups in India seeking an equity investment of ₹10L – ₹15Cr. If that describes your startup, review the eligibility criteria above before applying.