Funding glossary
Grants & non-dilutive terms
Every grants & non-dilutive term in our startup funding glossary, explained in plain English for Indian founders. 14 terms.
DisbursementThe actual transfer of approved funds from a grantor or lender to the recipient startup, which may happen in one payment or multiple scheduled tranches.Learn more DPIIT recognitionAn official certification from India's Department for Promotion of Industry and Internal Trade that qualifies a business as a startup and unlocks regulatory and financial benefits.Learn more Fund of Funds for Startups (FFS)A government-backed corpus managed by SIDBI that invests in SEBI-registered venture capital funds, which in turn invest equity into Indian startups.Learn more GrantA sum of money given to a startup by a government body or institution that does not need to be repaid and does not involve giving up equity.Learn more Interest subventionA government subsidy that reduces the effective interest rate on a loan by having the government pay part of the interest directly to the lender on the borrower's behalf.Learn more Matching grantA grant where the funding body provides money only if the applicant also contributes an equal or proportional amount from its own or other private sources.Learn more Milestone-based fundingA funding structure where capital is released in stages, with each subsequent payment contingent on the startup achieving predefined, verifiable outcomes.Learn more Non-dilutive fundingCapital received by a startup that does not require giving up any ownership stake or equity in the company.Learn more Production Linked Incentive (PLI)A central government scheme offering financial incentives to manufacturers based on incremental sales over a base year, designed to boost domestic production in targeted sectors.Learn more ReimbursementA grant structure in which the startup pays for an approved expense first, then applies to the funding body for refund of all or part of that cost.Learn more Section 80-IAC tax holidayAn Income Tax Act provision granting eligible startups a 100% deduction on profits for three consecutive years out of their first ten years of incorporation.Learn more Startup India Seed Fund Scheme (SISFS)A government grant scheme that channels non-dilutive seed capital to early-stage DPIIT-recognised startups via empanelled incubators.Learn more SubsidyA financial benefit provided by the government that reduces a startup's costs — either as a direct payment, a discount on a purchase, or a lower interest rate on a loan.Learn more TrancheOne scheduled portion of a larger funding amount, released at a specific point in time or upon meeting a defined condition.Learn more