Startup India Seed Fund Scheme

The Department of Promotion of Industry and Internal Trade (DPIIT) has launched an initiative called the Startup India Seed Fund Scheme (SISFS). This project offers financial support to emerging startups and assists them in the early stages of business.

This scheme provides assistance to startups in the following ways:

• Offers support right from the proof-of-concept stage

• Eases their market access

• Aids in the prototype advancement

• Helps in product trials and commercialisation

The Startup India Seed Fund Scheme facilitates the furnishing of capital for eligible startups with the help of incubators spread across Indi

The scheme plans to support around 3,600 entrepreneurs via 300 incubators between 2021 and 2025. This scheme also empowers startups to get loans from lenders, financial institutions, or commercial banks and generate investments from venture capitalists or angel investors.

To qualify for a grant, startups must fulfil the following eligibility conditions:

• The Department for Promotion of Industry and Internal Trade (DPIIT) recognised startups are eligible to apply for the Startup India Seed Fund Scheme

• Startups that have business registration of not more than two years old can apply

• Startups must use technology-driven factors behind the products, business model, core service, and distribution methodology to solve the targeted issues. 

• The business idea should fulfil the parameters of products or services having commercialisation potential, complementing the market demand with a scope of scalability

• SISFS prioritises startups offering pioneering solutions for water management, social impact, waste management, financial inclusion, education, food processing, healthcare, agriculture, biotechnology, space, defence, oil and gas, railways, etc.

• The startups who have received funding or aid of up to ₹10 Lakhs through Central or State Governments are not eligible 

• Grants under SISFS do not include any access to subsidised working space, monetary benefits from competitions/grand challenges, lab facilities, monthly allowances, or prototyping services

• As per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018, any startup with an Indian promoter holding at least 51% shares can apply

• The seed support provided in this scheme would be in the form of grants, convertible/debt debentures, etc., as per the scheme guidelines

The startups need to follow these steps to apply for this scheme:

• Step 1: Visit the official Startup India Seed Fund Scheme's website at https://seedfund.startupindia.gov.in/

• Step 2: Click on the 'Login' tab on the top right corner of the homepage

• Step 3: Choose the 'Create an Account' option and navigate to the registration page

• Step 4: Enter your company’s name, mobile number and email ID, and create a password 

• Step 5: Click on the 'Register' button 

• Step 6: Enter the OTP sent to your registered mobile number

• Step 7: Click the 'Submit' button to verify

• Step 8: Click on 'Apply Now' under the ‘For Startups’ option on the homepage

• Step 9: Log in with your username and password

• Step 10: Enter all the required details, upload the documents, and click on the 'Submit' button

To monitor and execute the rules and regulations of this Startup India Fund, the DPIIT has formed an Experts Advisory Committee (EAC). The EAC assesses and chooses the incubators to grant the seed funds, monitor the progress and perform all other required administrative tasks. 

This way, EAC ensures efficient funds utilisation and helps accomplish objectives set by the SISFS. The EAC is the deciding authority for the value of grant instalment size and directs the incubators based on its assessment.