Startup India Seed Fund Scheme

June 24, 2025

Consultupindia

What Is the Startup India Seed Fund Scheme?

The Startup India Seed Fund Scheme (SISFS) is a flagship initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India. Designed to bridge the critical funding gap at the early stages of a startup, the scheme enables eligible startups to access capital for proof of concept, prototype development, product trials, market entry, and commercialization.

With a budget outlay of ₹945 crore, the scheme empowers DPIIT-recognized startups through financial grants and convertible debt instruments distributed via eligible incubators across India. The objective is to create a robust startup ecosystem and support scalable, technology-driven ventures that are yet to raise institutional funding.

Eligibility Criteria for the Seed Fund Scheme

To qualify under the SISFS, startups must meet the following conditions:

Must be recognized by DPIIT (Department for Promotion of Industry and Internal Trade).
Startup must not be more than 2 years old at the time of application.
Should not have received more than ₹10 lakh of financial support from any central or state government scheme.
Must have a scalable, innovative, and commercially viable business model with high potential for employment generation or wealth creation.
Startup should be Indian-owned and incorporated as a private limited company or registered partnership or LLP.
Should not be engaged in product duplication or reverse-engineered offerings.

Documents Required for SISFS Application

Applicants need to provide the following documents for verification and due diligence:

DPIIT Certificate
Startup must not be more than 2 years old at the time of application.
Should not have received more than ₹10 lakh of financial support from any central or state government scheme.
Must have a scalable, innovative, and commercially viable business model with high potential for employment generation or wealth creation.
Startup should be Indian-owned and incorporated as a private limited company or registered partnership or LLP.
Should not be engaged in product duplication or reverse-engineered offerings.

Note: Additional documents may be requested by the selected incubator as part of internal evaluation.

Application & Approval Process

Step 1 - DPIIT Recognition

Startups must first register on the Startup India portal and obtain DPIIT recognition.

Step 2 - Application via Startup India Portal

Step 3 - Incubator Evaluation

The application is forwarded to one or more eligible incubators. These incubators assess the startup’s innovation, scalability, market feasibility, and financial viability.

Step 4 - Selection & Agreement

If shortlisted, the incubator and startup enter into a funding agreement outlining the disbursement structure and usage terms.

Step 5 - Fund Disbursement

Seed fund is disbursed in milestones. Grants of up to ₹20 lakh are available for product development, and up to ₹50 lakh as convertible debt or debentures for commercialization purposes.

Step 6 - Monitoring & Reporting

The incubator monitors fund utilization, milestone achievements, and submits periodic progress reports to the government.

Why Choose ConsultUp India for SISFS?

We bring in-depth expertise in preparing investor-grade pitch decks, validating financials, structuring the application, and directly coordinating with government-recognized incubators to improve approval outcomes. From eligibility assessment to documentation and follow-ups, we manage the end-to-end SISFS journey with professional precision.

ConsultupIndia is India’s leading consultancy dedicated to propelling startups and businesses toward unparalleled success. As a comprehensive one-stop solution, we offer a range of tailored services designed to guide entrepreneurs through every stage of their journey.

From company incorporation and branding to securing funding and scaling operations, our expert team provides innovative strategies and practical support. Whether you’re launching a new venture or seeking to elevate your business, ConsultupIndia is committed to transforming your vision into reality, driving growth, and achieving long-term success.

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Disclaimer: We are a startup consultancy firm in India, specializing in providing expert advice tailored to the needs of modern businesses. We operate independently, without any affiliations or collaborations with government agencies, non-government organizations, institutions, or departments.