Startup India Seed Fund Scheme Update 2022?

Startup India Seed Fund Scheme goals to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, & commercialization.

Startup India Initiative by Honble Prime Minister

The Startup India initiative was announced by Honble Prime Minister of India on 15.08.2015. The flagship initiative  target to  build a strong eco-system for nurturing innovation and Startups in the  our country that will drive sustainable economic growth and generate large scale employment opportunities. Further to this, an Action Plan for Startup India was unveiled by Prime Minister of India by PM Narendra Modi on 16.01.2016 . The Action Plan comprises of 19 action items spanning across areas such as (Simplification and hand holding), Funding Support and incentives and Industry-academia partnership and incubation.


Government of India has made fast paced efforts towards making the vision of Startup India initiative a reality. Substantial progress has been made under the Startup India initiative, which has stirred entrepreneurial spirit in the country, The Department for Promotion of Industry and Internal Trade (DPIIT) is mandated to co ordinate implementation of Startup India initiative with other Govt Departments. Apart from DPIIT, the initiatives under Startup India are driven Primarily by Five Govt Departments viz. Department of Science and Technology , Department of Bio-technology , Ministry of Human Resource Development , Ministry of Labour and Employment and Ministry of Corporate Affairs and NITI Aayog.

How Does Start-up India Seed Fund Work?

A Seed Grant Up to Three Lakh per start-up shall be provided for validation of idea, prototype development, assistance towards travelling costs & carrying out field market research skill training marketing and initial activities to setup a startup.

States Start up Seed Fund Scheme

  • The Scheme goals  to provide financial assistance to startups at the very initial stage of their project
  • It has been approved for a period of four years, starting from 2021-to 2022
  • Nine Hundred forty five Crore corpus will be divided over the next Four years for providing seed funding to eligible startups through eligible incubators across India
  • It is expected that the Startup India Seed Fund Scheme shall help over thirty-six hundred startups in the country.
  • This scheme is in line with the SELF INDEPENDENT  INDIA  launched (ABL) in May 2020.
  • SF to an eligible startup by the incubator shall be disbursed as follows:
  • Up to Twenty Lakhs Rupee as a grant for validation of Proof of Concept, or prototype development, or product trials
  • Up to Fifty Lakhs rupee of investment for market entry, Commercialization, or scaling up through convertible debentures or debt or debt-linked instruments

    Registration Process of Startup India Seed fund?

    • Register on the Startup India portal. SISFS Official Website 
    • Post registration, apply for Department for Industrial Policy and Promotion recognition.
    • Access the Section Eighty Internal Acoustic Canal exemption application form here.
    • Fill in all details with the below-mentioned documents uploaded & submit the application form.

    What is Seed Funding?

Seed funding or seed-stage funding is a very initial investment. Generally, investors often get an equity stake in exchange for the capital invested. In case the founders use their savings to start up a business, it is called bootstrapping. 

What is the need for SSFS in India?

The Indian startup Eco-system suffers from capital inadequacy in the seed and ‘P of C development stage. The capital required at this stage often presents a make-or-break situation for startups with good business ideas.

Many innovative business ideas fail to take off due to the absence of this critical capital required at an early stage. If startup india seed funding is offered to such promising cases, then they can have a multiplier effect invalidation of business ideas of many startups, leading to employment generation in the country.

In India, a States Startup Ranking Framework has been set up to strengthen the support of States & Union territory  to holistically build their startup ecosystems. Get the latest report of the State Startup ranking framework at the linked article.

Also See Some News

All People are Eligible for Startup India seed Fund Scheme 

The eligibility criteria for a startup  India to apply under the SIFS shall be as follows:

  1. The startup must be Recognized by the DPI
  2. It must have been incorporated not more than two years ago at the time of application
  3. Preference would be given to start-ups creating innovative solutions in sectors such as social impact, waste management,  financial inclusion, education, water management agriculture, food processing, biotechnology, healthcare, energy, mobility,  space, Defense, railways, oil, & Gas, textiles, Etc.
  4. The startup should not have received more than  TEN Lakh Rupee  of monetary support under any other Central or State Govt scheme.
  5. Share-holding By Indian promoters in the startup  india should be at least Fifty-One Percent at the time of application to the incubator for the scheme.

What is the Experts Advisory Committee Economic Advisory Council under the State India Seed food scheme?

Department for Promotion of Industry & Internal Trade shall constitute an Expert Advisory Committee that will be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme. The Economic Advisory Council will evaluate and select incubators for the allotment of Seed Fund’s monitor progress, and take all necessary measures for efficient Utilization of funds. 

Members from different departments shall be appointed to Economic Advisory Council, which comprises:

  1. A Chairman
  2. Financial Advisor, Department for Promotion of Industry & Internal Trade, or his representative
  3. Additional Secretary/ Joint Secretary/ Director/ Deputy Secretary, DPI
  4. One Representative each from
  5. Department of Biotechnology
  6. Department of Science & Technology
  7. Ministry of Electronics and Information Technology
  8. Indian Council of Agricultural Research
  9. Niti Aayogya
  10. At least three expert members nominated by Secretary, Department for Promotion of Industry & Internal from the startup ecosystem, investors, experts in the domain of Research and development, technology development and commercialization, entrepreneurship, and other relevant domains.

Why Need For Startup India Seed Fund Scheme (SISFS)?

  • Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise.
  • Funding from angel investors and venture capital firms becomes available to startups only after the proof of concept has been provided. Similarly banks provide loans only to asset-backed applicants.
  • It is essential to provide seed funding to startups with an innovative idea to conduct proof of concept trials.

The objective of Startup India  Seed Scheme 

  1. Start-up India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
  2. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions.

Eligibility Criteria Startup seed Fund scheme

The startup should be Recognized by DPIIT. At the time of application, the startup should be incorporated not more than two years ago. The start must have business ideas to develop a product or service which will be fit for the market, has the scope of scaling, and viable commercialization.

Total Budget: Rs. 945 Crore

Eligible for seed capital Assistance

A startup recognized by the Department for Promotion of Industry & Internal and incorporated or registered not older than 2 years at the time of applying. Startups should have a business idea to develop a service or product with viable commercialization, market fit, and scope of scaling.
At least 25 people must be able to sit in the incubator. on the date of application, the incubator must have at least 5 companies in physical incubation. on the date of application to the program, the incubator must have been active for at least 2 years.

Also Read

HighlightsStartup India Seed Fund Scheme
Scheme Startup India Seed Fund Scheme (SISFS)
Launched By Government Of India
AimProvide Funds For Startup
Official Website Visit Website
Financial AssistanceUp To Rs 50 Lakh
Total BudgetRs 945 Cr
No Of Beneficiaries3600

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