Startup India Seed Fund Scheme

Government Seed Funding of up to ₹50 Lakh for Early-Stage Startups

The Startup India Seed Fund Scheme (SISFS) backs founders at the stage most investors avoid — proof of concept, prototype, and first market entry. Naraway takes your DPIIT-recognised startup through eligibility, incubator selection, and the full application.

Check Your Eligibility How It Works
₹20L
Grant for Proof of Concept
₹50L
For Market Entry & Scaling
≤ 2 yrs
Since Incorporation
3
Incubator Choices Allowed

What the Scheme Provides

Two Funding Tracks, One Application

SISFS is built around the two moments where early capital changes everything: proving the idea works, and getting it into the market. A startup can be supported on either or both, disbursed through an approved incubator against agreed milestones.

  • 1
    Up to ₹20 lakh — Proof of Concept. A grant to validate your proof of concept, build a prototype, or run product trials. Released in milestones tied to development progress, not paid as a lump sum.
  • 2
    Up to ₹50 lakh — Market Entry & Scaling. For commercialisation and scaling, provided through convertible debentures, debt, or debt-linked instruments rather than an outright grant.
  • 3
    No equity dilution at the PoC stage. The proof-of-concept support is a grant, so you keep your cap table intact while you de-risk the idea.
  • 4
    Incubator backing. Selection routes you into an approved incubator's network — mentorship, infrastructure, and follow-on introductions that outlast the cheque.

The scheme deliberately funds the stage before institutional investors are comfortable. If you have a defensible idea and a credible team but no revenue yet, this is one of the few non-dilutive routes to your first serious capital.

Not sure which track fits your stage? Compare SISFS with other government funding routes

Do You Qualify?

SISFS Eligibility, in Plain Terms

Most rejections happen on avoidable eligibility gaps, not on the merit of the idea. Here is the full checklist before you apply.

  • ✓
    DPIIT-recognised startup. Recognition is mandatory before you apply. If you do not have it yet, it becomes step one.
  • ✓
    Incorporated within the last 2 years at the time of application.
  • ✓
    A scalable idea using technology in the core product, service, or business model, with a viable product-market fit.
  • ✓
    Indian promoters hold at least 51% of the company at the time of application.
  • ✓
    Not more than ₹10 lakh of monetary support already received under any other central or state scheme (prize money, subsidised space, founder allowance, and lab access do not count).

A startup can receive seed fund support only once under the scheme. That makes the quality of the application — the problem statement, the market, and the milestone plan — decisive. There are no second attempts at the same incubator on a weak proposal.

Get DPIIT recognition first with Naraway

How the Application Works

From Eligibility to Disbursement

The scheme is delivered through incubators, so the real work is positioning your startup to win at the incubator evaluation stage.

What Naraway Does

We Run the Application, You Run the Startup

SISFS is a self-application scheme, but the proposal and incubator strategy are where founders lose. That is the part we own end to end.

  • →
    DPIIT recognition, if not already in place
  • →
    Eligibility audit and document preparation
  • →
    Proof-of-concept narrative and milestone-based use of funds
  • →
    Financial projections aligned to the funding ask
  • →
    Incubator shortlist matched to your sector
  • →
    Portal submission and application tracking
  • →
    Pitch preparation for the evaluation committee
  • →
    Support through the agreement and milestone stages

Related Grants & Compliance

Build the Full Startup India Stack

The seed fund is one piece. These are the recognitions and benefits founders usually pursue alongside it.

Frequently Asked Questions

What is the Startup India Seed Fund Scheme (SISFS)?

The Startup India Seed Fund Scheme provides financial assistance to early-stage startups for proof of concept, prototype development, product trials, market entry, and commercialisation. Funds are disbursed through approved incubators — up to ₹20 lakh as a grant for validation of proof of concept, and up to ₹50 lakh for market entry and scaling through convertible debentures or debt-linked instruments.

Who is eligible for the Seed Fund Scheme?

The startup must be DPIIT-recognised, incorporated not more than two years before applying, and building a scalable, technology-led product with viable market fit. Indian promoters must hold at least 51%, and the startup should not have already received more than ₹10 lakh of monetary support under another central or state scheme.

How much funding can a startup get under SISFS?

Up to ₹20 lakh as a grant for proof of concept, prototype, or product trials, released against milestones; and separately up to ₹50 lakh for market entry, commercialisation, or scaling through convertible debentures, debt, or debt-linked instruments. The exact amount depends on your stage, proposal, and the incubator's evaluation.

How does a startup apply for the Seed Fund Scheme?

Applications are made on the Startup India portal, where you select up to three approved incubators in order of preference. The chosen incubator evaluates your application, may invite you to pitch, and decides on selection and amount. On selection, the incubator signs an agreement and disburses funds against milestones.

Do I need DPIIT recognition before applying for SISFS?

Yes — DPIIT recognition is a mandatory prerequisite. Naraway can complete your DPIIT recognition first and move straight into the seed fund application, so the two run as one continuous process.

Get Started

Find Out If You Qualify for Seed Funding

Tell us your stage and idea. We will confirm eligibility, complete DPIIT if needed, and build an application incubators say yes to.

Talk to an Expert: +91-6398924106
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