Startup India Seed Fund Scheme (SISFS)

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Purpose: PoC, Prototype Development, Market-Entry, and Commercialization

Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions.

Funding Agency: Department for Promotion of Industry and Internal Trade (DPIIT)

Maximum Funding : INR 50 Lacs
  • DPIIT Recognition: The startup must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
  • Age of Startup: The startup must be incorporated not more than 2 years from the date of application.
  • Innovation & Scalability: The startup should have an innovative business idea aimed at developing a product or service with strong market potential, commercial viability, and scalability.
  • Technology-Driven Solution: The startup should leverage technology in its product, service, business model, distribution model, or methodology to solve the identified problem.
  • Indian Promoter Shareholding: At least 51% shareholding must be held by Indian promoters at the time of application, in accordance with the Companies Act, 2013 and applicable SEBI regulations.
  • Previous Government Funding: The startup should not have received more than ₹10 lakh in monetary support under any other Central or State Government scheme. However, the following are excluded from this limit:
    • Prize money from competitions and grand challenges
    • Subsidized working space
    • Founder monthly allowance
    • Access to laboratories
    • Access to prototyping facilities
  • One-Time Assistance: A startup can avail seed support only once under SISFS in the form of a grant and once through debt/convertible debentures, as per scheme guidelines.
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