Startup India Seed Fund Scheme (SISFS)
This profile has been independently compiled from official gazette notifications and verified web domains. Source Authority Link: seedfund.startupindia.gov.in Authority: Ministry of Commerce and Industry (DPIIT) • State/Region: Central Scheme (All India) • Last Audited: 05 Sep 2026
Quick AI Summary
Provides seed funding up to ₹50 lakh to DPIIT-recognized early-stage startups through approved incubators for proof of concept, prototype development, and market entry.
Detailed Summary
Objective
The 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. The scheme addresses the capital inadequacy in the seed stage and 'Proof of Concept' development stage.
Implementation Framework
The scheme is implemented through a network of DPIIT-approved incubators across India. The Experts Advisory Committee (EAC) constituted by DPIIT selects and monitors incubators. Selected incubators receive grants to disburse seed funds to eligible startups as per the scheme guidelines.
Funding Structure
- Grant Component: Up to ₹20 lakh for validation of Proof of Concept, prototype development, or product trials. Disbursed in milestone-based installments.
- Debt/Convertible Debentures Component: Up to ₹50 lakh for market entry, commercialization, or scaling up through convertible debentures or debt-linked instruments.
Incubator Role
Incubators are responsible for screening, due diligence, recommendation, fund disbursement, and post-investment monitoring of startups. They must maintain a dedicated Seed Fund Management Committee for evaluation.
Key Benefits & Financial Assistance
| Comparison Criteria | Benefits |
|---|---|
| Key Benefits |
|
Eligibility Criteria Profile
| Comparison Criteria | Eligibility |
|---|---|
| Minimum Age Limit | 18 Years or above |
| Occupation Status | Self-Employed |
| Domicile State | All India (Central Scheme) |
Application Process Guide
- Register on the Startup India portal (startupindia.gov.in) and obtain DPIIT recognition certificate.
- Log in to the SISFS dedicated portal (seedfund.startupindia.gov.in) and complete the startup profile.
- Browse the list of DPIIT-approved incubators empaneled under SISFS and apply to preferred incubators (maximum 3 preferences).
- Incubator evaluates application based on eligibility, innovation, viability, and team capability; may conduct pitch sessions.
- Incubator's Seed Fund Management Committee recommends eligible startups to DPIIT for final approval.
- Upon approval, execute legal agreements (Grant Agreement / Debenture Subscription Agreement) with the incubator.
- Receive funds in milestone-based installments (grant) or as per drawdown schedule (debt/convertible debentures) directly into startup's bank account.
Common FAQs regarding this Yojana
The grant component must be utilized within 18 months from the date of first disbursement. The debt/convertible debenture component must be utilized within 24 months from the date of first disbursement. Extensions may be granted by the incubator's Seed Fund Management Committee in exceptional circumstances with valid justification.
Yes, a startup can apply to a maximum of three DPIIT-approved incubators empaneled under SISFS simultaneously through the portal. However, the startup can finally accept seed support from only one incubator.
No, the grant component (up to ₹20 lakh) does not require any equity dilution. The debt component (up to ₹50 lakh) is structured as convertible debentures or debt instruments; the conversion terms, valuation cap, and discount rate are mutually agreed upon between the incubator and the startup at the time of agreement execution.
Monetary support includes grants, loans, or equity investments received from Central or State Government schemes. It explicitly excludes non-monetary support such as prize money from competitions, subsidized working space or rent, monthly founder allowance/sustenance allowance, access to labs or prototyping facilities, and tax exemptions.
Funds are disbursed in tranches upon achievement of pre-defined milestones agreed upon in the Grant Agreement. If milestones are not met, the incubator may withhold subsequent tranches. In case of significant deviation or misuse, the incubator can recall disbursed funds and terminate the agreement as per the terms laid out in the scheme guidelines and the signed agreement.