Grant

A sum of money given to a startup or organisation that does not need to be repaid and does not require giving up equity.

A grant is a sum of money given to a startup or organisation that does not need to be repaid and does not require giving up equity. Grants are the most attractive form of funding for founders because they are non-dilutive (you retain full ownership) and non-repayable (unlike a loan). In India, grants are awarded by central and state governments, public-sector bodies, corporations through their CSR budgets, universities, international foundations, and multilateral agencies such as the World Bank and UNDP. Grants typically fund specific activities — research and development, prototype creation, pilot projects, hiring specialised talent, or go-to-market execution. They are disbursed either as a lump-sum upfront payment or, more commonly, in milestone-based tranches released upon achievement of agreed deliverables. The main trade-off is application complexity: government grants in particular require detailed project proposals, supporting documents (incorporation certificate, DPIIT registration, financial statements), compliance reports, and utilisation certificates. The competition can be intense — some popular grants receive thousands of applications for a handful of awards. However, because grants do not dilute founders or require repayment, even a single successful grant can meaningfully extend runway and accelerate development.

1. Identify grants that match your startup's stage, sector, and location — use StartupGrantsIndia to filter active programmes. 2. Read the eligibility criteria carefully; most government grants require DPIIT recognition, MSME registration, or both. 3. Prepare a detailed project proposal that addresses the grant's objectives, your methodology, expected outcomes, and budget breakdown. 4. Gather supporting documents: incorporation certificate, DPIIT certificate, PAN card, financial statements, founder KYC, and a pitch deck or detailed project report. 5. Submit before the deadline — late submissions are almost never accepted. 6. If shortlisted, you may be called for a presentation or interview before the final award. 7. Post-award, comply with reporting requirements: milestone reports, utilisation certificates, and audited statements are typically mandatory.

A deep-tech startup working on low-cost water purification technology for rural India applies for a BIRAC Biotechnology Ignition Grant (BIG). The startup is DPIIT-recognised and incubated at an IIT-affiliated incubator. It submits a 30-page project proposal detailing the technology, the health impact of contaminated water in target villages, a six-month development timeline, and a ₹25 lakh budget for consumables, equipment, and a research associate's salary. After three months of evaluation, including a presentation to a scientific review committee, the startup is awarded the grant. Funds are released in three tranches: 40% upfront, 30% upon prototype completion, and 30% upon field-testing results and submission of a utilisation certificate.