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Startup India Seed Fund (SISFS)

Startup India Seed Fund Scheme 2026 — ₹945 Crore Seed Grants for Early-Stage Startups

2026 ✓EmploymentUp to ₹20 lakh grant (PoC stage, non-repayable) + Up to ₹50 lakh (market entry, convertible debenture) + Access to incubator mentorship, labs, legal support + 80% of SISFS incubators are in Tier 2/3 citiesLaunched: 2021Updated: May 2026
2 min read
Reviewed by Riya Sharma, Editor · Last verified: 27 May 2026
Written & fact-checked by Riya Sharma · Editor, Schemes In India
Last verified: · How we verify scheme facts

What is Startup India Seed Fund (SISFS)?

Startup India Seed Fund Scheme (SISFS) was launched in April 2021 with a corpus of ₹945 crore to provide early-stage funding to Indian startups through incubators. DPIIT (Department for Promotion of Industry and Internal Trade) is the nodal agency. How it works: Government gives grants to incubators → incubators disburse seed funding to startups. Funding structure for startups: (1) Proof of Concept (PoC): Up to ₹20 lakh (grant — not repayable) for idea validation, prototype development, product testing; (2) Early market validation: Up to ₹50 lakh (as convertible debentures OR conditional debt) for market entry, user acquisition, pilot testing. Target: 3,600 startups by 2025. Eligible incubators: Government-recognized incubators at IITs, IIMs, NITI Aayog centres, state government incubators, and selected private incubators. SISFS specifically targets startups in Tier 2 and Tier 3 cities — NOT just metro-based startups.

Startup India Seed Fund (SISFS) — Quick Overview

Scheme NameStartup India Seed Fund Scheme 2026 — ₹945 Crore Seed Grants for Early-Stage Startups
Launched ByGovernment of India
Launch Year2021
BenefitUp to ₹20 lakh grant (PoC stage, non-repayable) + Up to ₹50 lakh (market entry, convertible debenture) + Access to incubator mentorship, labs, legal support + 80% of SISFS incubators are in Tier 2/3 cities
CategoryEmployment
Last Verified27 May 2026
Official Portalhttps://startupindia.gov.in/content/sih/en/sisfs.html

Benefits of Startup India Seed Fund (SISFS)

Up to ₹20 lakh grant (PoC stage, non-repayable) + Up to ₹50 lakh (market entry, convertible debenture) + Access to incubator mentorship, labs, legal support + 80% of SISFS incubators are in Tier 2/3 cities

Who is Eligible for Startup India Seed Fund (SISFS)?

  • DPIIT recognized startup (register at startupindia.gov.in first)
  • Startup must be less than 2 years old from date of incorporation (for PoC grant), less than 4 years old (for market entry)
  • Must not have received seed/angel/VC funding of more than ₹10 lakh previously
  • Must be working on innovative product/service with scalable business model
  • Must be incorporated as Private Limited Company, LLP, or Registered Partnership
  • Applied through an SISFS-empanelled incubator (apply to incubator, not to government directly)

Documents Required for Startup India Seed Fund (SISFS)

0/5 documents ready

How to Apply for Startup India Seed Fund (SISFS) Online?

  1. 1First register your startup on startupindia.gov.in → Get DPIIT Recognition Certificate
  2. 2Find SISFS-empanelled incubator near you (list at startupindia.gov.in/sisfs) — prefer incubators in your city/sector
  3. 3Apply to the incubator directly with pitch deck, team details, and product demo
  4. 4Incubator evaluates startup → selects → applies to DPIIT for fund release
  5. 5DPIIT releases grant to incubator → incubator disburses to startup in 1-3 instalments
  6. 6Startup receives mentorship, lab access, co-working space from incubator + seed money
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Official Government Portal

Use startupindia.gov.in directly — there is no application fee, and no third party can speed up your approval.

🔗Apply on startupindia.gov.in/content/sih/en/sisfs.html
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Frequently Asked Questions — Startup India Seed Fund (SISFS)

Depends on stage: PoC grant (up to ₹20 lakh): GRANT — not repayable. This is for idea validation, prototype building, technical testing. No equity dilution, no repayment. Market entry funding (up to ₹50 lakh): Given as Convertible Debentures or Conditional Debt — convertible to equity at next funding round (angel/VC). This means if your startup gets funded by investors later, the SISFS amount converts to equity shares (typically 2-5%). If startup fails, it's treated as a failed investment — not recovered from founders personally.
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