Scheme Sponsor: Ministry of Commerce and Industry, Govt. of India.

Mode of Assistance: Funding, Mentoring and Networking

Target Group: A startup, recognized by DPIIT (Department for Promotion of Industry and
Internal Trade), incorporated not more than 2 years ago at the time of application.

About The Scheme

The DPIIT established the Startup India Seed Fund Scheme (SISFS) with an INR 945 crore budget to support companies with proof of concept, prototype development, product trials, market entry, and commercialization costs. Over the next four years, 300 incubators will
support an estimated 3,600 businesses. The Seed Fund will be distributed to qualifying entrepreneurs via authorized incubators around India.

Nature of Assistance:

The incubator will disburse seed funds to a qualifying firm in the following manner:

• Up to Rs. 20 lakhs as a grant for Proof-of-Concept validation, prototype development,
  or product trials. The money will be awarded in milestone-based payments. These
  milestones can include prototype creation, product testing, and preparing a product for
  market launch, among other things.
• Investment of up to Rs. 50 lakhs for market entry, commercialization, or scaling up via convertible debentures, debt, or debt-linked securities.
• A startup applicant can obtain seed funding in the form of grant and debt/convertible debentures each time as per the scheme’s requirements.

Requirements:

• To get DPIIT-recognized, please visit: https://www.startupindia.gov.in/content/sih/en/startupgov/startup_recognition_page.html
• The startup must have a business idea to create a product or service with market fit, viability, and scaling potential.
• The startup should use technology into its main product or service, business model, distribution mechanism, or approach to solve the challenge at hand.
• Startups developing innovative solutions in social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, textiles, and other sectors would be preferred.
• Startups should not have received more than Rs 10 lakh in monetary support from any other Central or State Government scheme. This excludes competition and grand challenge prize money, subsidized workspace, a monthly founder stipend, lab access, and access to a prototyping facility.
• According to the Companies Act of 2013 and the SEBI (ICDR) Regulations of 2018 Indian promoters’ shareholding in the company should be at least 51% when applying to the incubator for the scheme.
• A startup application can receive seed funding in the form of a grant and debt/convertible debentures once, subject to the scheme’s guidelines.

Apply on: https://seedfund.startupindia.gov.in/about

For More Information: https://seedfund.startupindia.gov.in/about