Outlook Start-Up Desk
Launched in April 2021, the Startup India Seed Fund Scheme by the Department for Promotion of Industry and Internal Trade (DPIIT) has a ₹945 crore outlay over four years. It offers up to ₹50 lakh per startup for prototype development, trials, and market entry.
Eligible start-ups can apply for the scheme through the Startup India portal. The approved seed funding is disbursed via recognised incubators located across India that evaluate and support the selected ventures.
The scheme offers up to ₹20 lakh as a grant for proof of concept, prototype development, or product trials. This is disbursed in milestone-based instalments tied to product testing and readiness for launch.
Start-ups seeking market entry or commercialisation can receive up to ₹50 lakh through debt, convertible debentures, or debt-linked instruments. However, the funds must strictly be used for approved purposes—not for creating physical facilities.
To qualify, a start-up must be DPIIT-recognised and incorporated within the past two years. It should aim to develop a market-fit product or service with commercialisation and scaling potential under the scheme.
Start-ups must use technology in their core offering and address a real problem. Preference is given to sectors like healthcare, energy, biotech, education, defence, agriculture, mobility, and social impact, among others.
Start-ups must not have received over ₹10 lakh from any other Central or State government scheme (excluding prize money, subsidised workspace, monthly founder allowance, or lab access). Indian promoters must hold more than 51% of the start-up’s shareholding at the time of application. Funding is provided as grants or debt instruments, as per the scheme’s guidelines.
Startups can apply for the scheme through the official Startup India portal at seedfund.startupindia.gov.in. Calls for applications are open on a rolling basis, allowing eligible ventures to apply anytime online.
Applicants must log in using the same credentials used for DPIIT startup recognition. Once logged in, they can click on the 'Apply Now' option for startups and fill in the required details in the application form.
To complete your application, select up to three incubators in order of preference. These incubators will review your proposal and, if selected, release the funds—bringing you one step closer to turning your idea into reality.