🟢 Startup India Seed Fund Scheme (SISFS) – Get ₹50 Lakh for Your Startup
The Startup India Seed Fund Scheme (SISFS) is a powerful funding program launched by the Government of India to support early-stage startups. If you have an innovative idea but lack capital, this scheme can offer up to ₹50 lakh for product trials and ₹20 lakh for idea validation or prototype development.
This post explains how the scheme works, who can apply, and how to increase your chances of approval — with practical formats and links.
🧠 What is the Startup India Seed Fund Scheme?
SISFS is an initiative under the Startup India Mission, launched in 2021 by the Department for Promotion of Industry and Internal Trade (DPIIT).
It aims to:
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Help startups with proof-of-concept, prototype development, and market entry.
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Provide non-equity-based funding through selected incubators across India.
💰 Funding You Can Get
| Stage | Funding Limit |
|---|---|
| Idea Validation/PoC | Up to ₹20 lakh (grant) |
| Product Trials/Market Entry | Up to ₹50 lakh (convertible debenture or debt) |
Funding is disbursed through DPIIT-recognized incubators.
👤 Eligibility Criteria
You are eligible if:
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Your startup is recognized by DPIIT
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Incorporated within last 2 years
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Developing a product/service with scalable business model
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Not received funding more than ₹10 lakh from any govt scheme
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The promoter holds at least 51% stake
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Preference to innovative, IP-based, tech-driven models
🔗 Need DPIIT recognition? Apply here
📄 Documents Required
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DPIIT Recognition Certificate
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Startup Pitch Deck
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PAN & Aadhaar of founders
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Incorporation Certificate
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Shareholding pattern
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Project Report (Download below ⬇️)
- Business Plan (Download below ⬇️)
- Bank account details
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Declaration of self-funding
🧭 Step-by-Step SISFS Application Process
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Apply online at startupindia.gov.in
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Choose your preferred incubator
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Submit pitch deck + financials
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Incubator’s Seed Fund Committee reviews application
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Due diligence & shortlisting
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Agreement signing and fund disbursal
📂 Downloadable Project Report Format
🗂️ Click here to download SISFS Project Report Template (DOCX)
Make sure to include:
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Business model
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Market opportunity
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Team background
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Use of funds
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Financial projections (3–5 years)
💡 Pro Tips for Approval
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Choose an incubator related to your industry
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Tailor your pitch for the problem-solution-fit
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Show scalability & market size
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Mention how you will use the funds efficiently
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Avoid jargon, stay clear and focused
❓ FAQs – Startup India Seed Fund Scheme
Q1: Do I need to repay the seed fund?
🔹 Grants (₹20 lakh) are non-repayable. Funding beyond this may be debt or convertible debentures.
Q2: Can existing startups apply?
🔹 Yes, if incorporated within last 2 years and not previously funded.
Q3: Can I apply to multiple incubators?
🔹 Yes, but only one will approve and fund.
Q4: Do I need to be tech-based?
🔹 Not mandatory, but tech-driven and IP-based models are preferred.
Q5. What is a startup as per Indian Government?
A startup is an entity that:
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Is incorporated as a Private Ltd., LLP, or Registered Partnership
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Is not older than 10 years
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Has an annual turnover of less than ₹100 crore
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Is working on innovation, development or improvement of products/services
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Is recognized by DPIIT
Q6. Is there a negative list of industries/businesses?
Yes, startups in the following areas are not eligible for SISFS:
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Trading businesses (buy/sell without innovation)
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Alcohol, tobacco, gambling, or firearms
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Real estate and construction (unless tech-driven)
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Financial products/services not backed by technology or innovation
Q7. Does my startup need to be profitable?
❌ No. Profitability is not required.
Startups in the idea or prototype stage are fully eligible, even if not earning yet.
Q8. Does my startup need to have any turnover?
No, there is no minimum turnover required.
Even pre-revenue startups can apply if the business model is strong.
Q9. Do you have any format of pitch deck?
✅ Yes.
You can download the SISFS Pitch Deck Format (PPT) here:
📎 Click to Download
Q10. Does my startup need to be a company?
Yes. The startup must be registered as a:
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Private Limited Company under Companies Act
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Limited Liability Partnership (LLP)
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Registered Partnership Firm
❌ Proprietorships, OPCs, or informal entities are not eligible.
Q11. What is covered in due diligence?
Due diligence by the incubator includes:
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Verification of documents and certificates
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Background and capability of founders
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Financial planning and fund usage
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Market potential and innovation
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Previous funding history
Q12. Do I need to pay interest on debt or convertible debentures?
Yes, if you receive seed funding as debt or convertible debentures, incubators may charge nominal interest or apply equity terms.
💡 Note: Grants (up to ₹20 lakh) are non-repayable and interest-free.
Q13. Are there any rules on how to spend the seed fund?
Yes. Funds should only be used for:
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Product development
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Market entry & validation
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Hiring and operations
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Branding and trials
🚫 Disallowed: personal expenses, real estate, debt repayment, or unrelated activities.
Q14. If I buy a startup (incorporated within 2 years), can it apply?
✅ Yes, provided:
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It maintains its original legal entity
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Is DPIIT recognized
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Has not already received seed fund earlier
Q15. If I am already getting a subsidy under another scheme, am I eligible?
✅ Yes, if the total government support received is below ₹10 lakh (excluding fellowship, prize, or subsidies not related to seed funding).
Q16. What qualifies as innovative, IP-based, tech-driven?
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Innovative: Offers new, efficient, or impactful solutions
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IP-based: Involves patents, trademarks, or unique processes
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Tech-driven: Uses AI, IoT, Robotics, Blockchain, SaaS, FinTech, etc.
🧠 Example: An AI-driven health diagnostic platform is eligible. A regular boutique is not.
Q17. What if the promoter is a holding company?
❌ Not eligible. The startup must be an operational business entity, not just a holding or investment vehicle.
Q18. What is the tax treatment on the seed fund received?
Generally, grants under SISFS are treated as capital receipts and are not taxable under Section 2(24) of the Income Tax Act.
Still, consult your CA for your specific case.
📢 Final Word
The Startup India Seed Fund Scheme (SISFS) is one of the best central government startup schemes available today. Whether you’re building a tech product, social innovation, or rural solution — this is your chance to secure initial capital and mentoring.
👉 Need help with your application or pitch deck? Contact Us
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