Startup India Seed Fund Scheme (SISFS) : To provide financial assistance to startups

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Startup India Seed Fund Scheme

Startup india seed fund scheme




Startup India Seed Fund Scheme(SISFS): On February 5, 2021, The Government of India made an official announcement about the approval of the Startup Indian Seed Fund Scheme(SISFS). It has been approved for a period of 4 years and was Implemented with effect from April 1, 2021.

This scheme is in line with the Atamnirbhar Bharat Campaign launched in May 2021. It is announced during the Prarambh: startup India international summit which marked the five-year anniversary of the startup India Initiative.



Aim of Startup India Seed Fund Scheme

  • To provide financial assistance to startup for proof of concept, prototype development, product trials, market entry and commercialization.
  • Many innovative business ideas fail to take off due to the absence of the critical capital required at an early stage. seed funding is offered to such promising cases so they can have a multiple effect in validation leading to employment generation in the country.

Keypoints of SISFS

  • It comes under DPIIT( Department for Promotion of Industry and Internal Trade).
  • Prarambh, Inaugurated by Minister of Commerce and Industry Mr Piyush Goyal.
  •  It’s focusing on tier2 and tier3 cities startups, by giving them finanicial support and market planning.



Eligibility Conditions and benefits:

  • SISFS provide loan, who is incorporated not more than 2 years.
  • Startups, should not have received more than rs. 10 lakh of monetary support.
  •  SISFS support an estimate of 3,600 entrepreneurs through 300 incubators in next 4 years. An expert advisory committee (EAC) constituted by DPIIT, will be responsible for the overall execution and monitoring of the scheme.
  • Grant of upto rs. 5crore will be provided to the eligible Incubators, If selected by the committee.
  • It is mainly projected for tier 2 and tier 3 cities.
  • It typically represents the first official money that a business venture raises, it also helps a
  •  company to finance it’s first step including things like market research and product development.
  • One of the most common type of investors participating in seed funding is a so-called Angel Investors (for appreciating risk ventures and expect an equity stake in the company in exchange for their investment).



Startup Indian Seed Fund Scheme(SISFS) is organized by Department for promotional of Industry and Internal Trade (DPDPPIIT)It comes under the ministry of commerce and Industry. The role of DPIIT is to promote or accelerate the industrial development of the country by facilitating investment in new and upcoming technology, FDI and support the balanced development of industries.

You can check this complete article on Startup Indian Seed Fund Scheme UPSC, which will help students and other stakeholders understand the scheme in a comprehensive manner. In this scheme, you can apply for an incubator or as a startup.



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FAQ’s for Startup India Seed Fund Scheme

What is Startup India Seed Fund Scheme?

Startup India Seed Fund Scheme (SISFS) provides financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization. Eligible startups can apply for the scheme on the Startup India portal. The Seed Fund will be disbursed to selected startups through eligible incubators across India.

Does the scheme support startups from specific sectors?

SISFS is a sector agnostic scheme, which means that startups from any sector can apply for the scheme. However, preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil, and gas, textiles, etc. This list of sectors is indicative and not exhaustive.

How much seed funding can a startup receive under the scheme?

Up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, or prototype development, or product trials. The grant shall be disbursed in milestone-based installments. These milestones can be related to the development of prototypes, product testing, building a product ready for market launch, etc.
Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments

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