The Startup India Seed Fund Scheme offers grants up to ₹20 Lakhs. This funding is for testing proof of concepts, building prototypes, or conducting product trials. Larger amounts are available for commercializing products or expanding operations.
Startups recognized by DPIIT must be less than two years old when applying. The Department for Promotion of Industry and Internal Trade launched this scheme in April 2021. It has a budget of ₹945 crore. The fund supports startups from early stages through market entry.
Eligible startups apply via the Startup India portal. A network of incubators across India will distribute the Seed Fund.
Grants up to ₹50 Lakhs are provided. A ₹20 Lakh grant supports proof of concept validation, prototype creation, or product testing. Funds are given in stages based on milestones. These milestones may involve prototype development, product testing, or market-ready products.
A ₹50 Lakh grant supports market entry or scaling. This funding comes via convertible debentures or debt instruments.
Seed funds cannot create facilities. They must be used for approved purposes only.
Key eligibility criteria include DPIIT recognition. Startups must be incorporated within two years of applying. They need a commercializable business idea. This idea should include a product or service with market fit and growth potential.
Startups must use technology in their core offering. This applies to their business model or methods. They should address a specific problem.
The scheme prioritizes innovative solutions. This includes areas like social impact, waste management, and food processing. Other favored sectors are water, biotech, finance, education, and health. Energy, agriculture, defense, and space are also included. Mobility, railways, oil, gas, and textiles are also supported.
Startups should not have received over ₹10 Lakhs from other government schemes. This excludes prize money and lab access. Indian promoters must hold over 51 percent of the startup’s shares.
The seed support can be grants or debt. This follows the scheme’s guidelines.
Applications are accepted continuously on the Startup India portal. Recognized startups can apply online. The portal address is seedfund.startupindia.gov.in.