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Central · DPIIT, Ministry of Commerce and Industry

Startup India Seed Fund Scheme (SISFS)

SISFS provides early-stage Indian startups with proof-of-concept grants and product development funding through a network of 300+ incubators.

Funding: Up to ₹20L grant + ₹50L convertible debenture
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Overview

The Startup India Seed Fund Scheme was launched in 2021 to help DPIIT-recognised startups with their earliest capital needs — proof of concept, prototype development, product trials, market entry and commercialisation. Funds are disbursed through incubators selected by an Expert Advisory Committee, not directly to startups.

Key features

  • Grants up to ₹20 lakh for proof of concept and prototype development
  • Up to ₹50 lakh as convertible debentures or debt for market entry and commercialisation
  • Disbursed through 300+ selected incubators across India
  • Milestone-linked tranches, not a lump sum
  • No equity taken at the grant stage

Eligibility

  • Startup must be DPIIT-recognised
  • Incorporated not more than 2 years before the date of application
  • Idea must have a market fit for a viable commercial product or service
  • Should not have received more than ₹10 lakh of monetary support under any other central or state scheme
  • At least 51% shareholding must be with Indian promoters

Benefits

  • Non-dilutive funding at the earliest stage
  • Access to incubator infrastructure and mentorship
  • Pathway to follow-on funding through the incubator network
  • Credibility boost for DPIIT recognition and future fundraising

Required documents

  • DPIIT recognition certificate
  • Certificate of incorporation
  • Pitch deck and business plan
  • Audited financials (if any)
  • PAN and bank details
  • Founder KYC and resumes

Application process

  1. 1
    DPIIT recognition
    Get your startup recognised by DPIIT first — mandatory prerequisite.
  2. 2
    Pick an incubator
    Choose from the list of SISFS-selected incubators matching your sector.
  3. 3
    Apply through incubator
    Submit application through the seedfund.startupindia.gov.in portal.
  4. 4
    Pitch and evaluation
    Incubator's selection committee evaluates; shortlisted startups pitch.
  5. 5
    Sanction and disbursement
    Funds disbursed in milestone-linked tranches to your bank account.

Common pitfalls

  • !Applying without DPIIT recognition
  • !Submitting to an incubator that doesn't match your sector
  • !Weak pitch deck with no clear milestones
  • !Crossing the two-year incorporation window

FAQs

It's a mix. Up to ₹20 lakh is disbursed as a grant for proof of concept; up to ₹50 lakh is disbursed as convertible debentures or debt for later stages.

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