Startup India Seed Fund Scheme (SISFS): get up to ₹50 lakh for your early-stage startup

Finding money at the idea or prototype stage is the hardest part of building a startup. Angel investors want traction, and banks want collateral. The Government of India's Startup India Seed Fund Scheme (SISFS) was created for exactly this gap.

What is SISFS?

SISFS is a central government scheme run by DPIIT (Department for Promotion of Industry and Internal Trade) with a corpus of ₹945 crore. It does not give money to startups directly. The funds go through selected incubators across India, and those incubators then select and support startups.

How much funding can you get?

• Up to ₹20 lakh as a grant for proof of concept, prototype development, or product trials.
• Up to ₹50 lakh as convertible debentures or debt-linked instruments for market entry, commercialisation, or scaling.

Who is eligible?

• The startup must be recognised by DPIIT.
• It must have been incorporated no more than 2 years before the date of application.
• It should have a business idea for a product or service with market fit, viable commercialisation, and scope for scaling.
• It should use technology in its core product, service, business model, or distribution.
• It should not have received more than ₹10 lakh of monetary support from any other central or state government scheme.
• Indian promoters should hold at least 51% of the shareholding.

How to apply

1. Get DPIIT recognition on the Startup India portal if you don't already have it.
2. Go to the official SISFS portal at seedfund.startupindia.gov.in.
3. Sign in with your Startup India credentials.
4. Fill in the application form with your business details, pitch, and funding requirement.
5. Choose up to 3 incubators, in order of preference.
6. Submit the application. The incubator's Seed Management Committee reviews it and may call you to pitch.

Documents to keep ready

• DPIIT recognition certificate
• Pitch deck
• Business plan and use-of-funds breakdown
• Founders' details and shareholding pattern
• Incorporation certificate

Tips to improve your chances

• Pick incubators whose focus matches your sector. A deep-tech incubator is unlikely to prioritise a D2C brand.
• Show clearly what milestone the money will help you reach.
• Keep your pitch deck short: problem, solution, market, team, traction, and the ask.

Final word

SISFS is one of the few routes where an early-stage founder can get non-dilutive grant money (the proof-of-concept tranche) from the government. If you're DPIIT-recognised and within 2 years of incorporation, it's worth applying.