Startup India Seed Fund (SISFS) — ₹20 Lakh

What is Startup India Seed Fund Scheme (SISFS)?

Startup India Seed Fund Scheme (SISFS) is a Government of India initiative (DPIIT — Department for Promotion of Industry and Internal Trade) that provides early-stage funding to startups through empanelled incubators. It bridges the gap between idea-stage and venture capital funding.

Key features:

• Up to ₹20 lakh as grant for proof of concept, prototype development, or product trials
• Up to ₹50 lakh as loan/convertible debentures for market entry and commercialisation
• Funding channelled through 300+ DPIIT-empanelled incubators
• Total scheme budget: ₹945 crore (2021–2025)
• No equity dilution for the grant component

Who is Eligible?

Your startup must be:

1. DPIIT-recognized (registered as a startup at startupindia.gov.in)
2. Not more than 2 years old at the time of application (incorporated after April 2019)
3. Not received more than ₹10 lakh of monetary support from any other government scheme
4. Incorporated as a private limited company, registered partnership, or LLP
5. Working on innovation-driven products or services with clear societal impact or commercial potential

Funding Available

Grant is given by the incubator from SISFS funds. The startup does not give equity for the grant. The loan component may convert to equity at a later funding round.

How to Apply — Step by Step

Step 1: Get DPIIT Recognition (if not already done)

1. Go to startupindia.gov.in
2. Register your startup → apply for DPIIT recognition
3. DPIIT recognition is free and grants various benefits

Step 2: Find an Eligible Incubator

1. Go to seedfund.startupindia.gov.in
2. Click "Incubators" → view list of empanelled incubators
3. Filter by state, sector, or stage
4. Visit incubator websites — understand their focus area and application requirements

Step 3: Apply to Incubator

1. Apply directly to the incubator of your choice (not to DPIIT directly)
2. Each incubator has its own application form and selection process
3. Typical incubator application requires:
   • Business plan / pitch deck
   • Proof of concept or prototype (if available)
   • Team details
   • Financial projections

Step 4: Selection and Funding

1. Incubator's selection committee evaluates applications
2. If selected: Grant or loan agreement is signed with the incubator
3. Funds are disbursed in tranches based on milestones
4. Incubator provides mentorship, network, and workspace along with funding

Documents Required

• DPIIT recognition certificate
• Company incorporation certificate (MCA registration)
• Founders' Aadhaar and PAN
• Pitch deck / business plan (10–15 slides)
• Bank account of the startup
• Financial model / projections (for loan component)

What Incubators Look For

Incubators evaluate startups on:

• Innovation: Is the product/service novel?
• Market size: Is there a real and large market?
• Team: Do the founders have relevant skills?
• Traction: Early users, pilot customers, or POC results
• Social impact: Many SISFS incubators prioritise sectors like healthcare, agri, education, and clean energy

Famous SISFS-Empanelled Incubators

• IIT Bombay SINE
• IIM Ahmedabad CIIE
• IIT Delhi FITT
• T-Hub (Hyderabad)
• Nasscom 10000 Startups
• Villgro (Chennai)
• Many state government incubators (TiE chapters, state startup missions)

SISFS vs Angel Investment vs VC

SISFS is ideal for very early-stage startups not yet ready for angel or VC funding.

Frequently Asked Questions

Can I apply to multiple incubators simultaneously?

Yes — you can apply to multiple SISFS-empanelled incubators. However, you can only receive SISFS funding from one incubator.

My startup is 3 years old. Am I eligible?

No — SISFS requires startups to be not more than 2 years old at the time of application. For older startups, explore other schemes like DPIIT's other programmes or private angel/VC funding.

Is the ₹20 lakh grant taxable?

Startup India grants from DPIIT-recognised schemes may be exempt from income tax under Section 80-IAC. Consult a chartered accountant to confirm tax treatment for your specific situation.

Do I need to be in a specific sector?

No sector restriction — SISFS is sector-agnostic. However, incubators may have sector focus (some focus on agritech, others on deeptech, healthtech, etc.). Choose an incubator whose focus matches your startup domain.

I am from a small town. Do I have equal access?

SISFS incubators are spread across India — not just metros. Many state government-backed incubators in tier-2/3 cities are empanelled. Remote startups can also apply online.

Official Links

• Apply via incubators: seedfund.startupindia.gov.in
• DPIIT Startup India: startupindia.gov.in
• Get DPIIT recognition: startupindia.gov.in/content/en/startup-scheme.html
• Helpline: startup@dpiit.gov.in