Startup India Seed Fund Scheme (SISFS): How It Works and How to Apply If It Reopens

Applications are closed. The Startup India Seed Fund Scheme (SISFS) stopped accepting new startup applications on 31 May 2026, and no new call had been announced on the Seed Fund portal as of October 2026. Read this guide to understand how the scheme works and to be ready if it reopens.

SISFS gives early-stage startups money for proof of concept, prototypes, product trials, market entry and commercialisation. You don't get the money from the government directly. You apply online, and approved incubators across India pick startups and pay out the funds. This guide covers who could apply, how incubators were chosen, what the form asked for and what happens after you submit.

This guide is based on the official guidelines as of October 2026; always check the portal for the latest rules.

Important: check whether applications are open

The Seed Fund portal shows a "Final Notice (Extended)": the last date for startups to apply was 31 May 2026, and incubators had to complete 100% of startup selection by 30 June 2026. New startup applications can no longer be submitted.

A PIB release of 17 April 2026 says 219 incubators were selected, the entire corpus of Rs 945 crore has been committed, and incubators have approved over Rs 605 crore for more than 3,400 startups. It adds that the scheme was extended to allow continued disbursement and completion of approved activities, not to take in new applicants.

If you were already selected, your incubator keeps releasing instalments under your agreement. If you want to apply now, watch the portal for a fresh call. The steps below describe how the scheme and its form have worked, so you'll be ready if it reopens. To find other funding open right now, browse the scheme directory.

Who can apply

According to the official SISFS guidelines from DPIIT, your startup must:

1. Be recognised by DPIIT and incorporated not more than 2 years ago at the time of application.
2. Have a business idea for a product or service with market fit, viable commercialisation and scope to scale.
3. Use technology in its core product or service, business model, distribution model or methodology.
4. Not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. Prize money from competitions and grand challenges, subsidised working space, founder monthly allowance, and access to labs or prototyping facilities don't count towards this limit.
5. Have at least 51% shareholding by Indian promoters when it applies, as per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.

Sectors such as social impact, agriculture, healthcare, education, energy and mobility get preference, but the portal FAQ says the scheme is sector-agnostic.

A few more points from the FAQ:

• Individual founders can't apply. Only DPIIT-recognised startups can.
• There's no minimum education qualification for founders.
• There are no exemptions to any eligibility criterion. You must meet all of them on the date you submit.

If you don't have DPIIT recognition yet, get it first through the Startup India recognition page.

How much funding you can get

The guidelines allow two kinds of support, and each can be given once:

The grant is paid in instalments tied to milestones, such as building a prototype, testing the product or getting it ready for market launch.

For debt or convertible debentures, the guidelines say:

• The interest rate can't be more than the prevailing repo rate.
• The tenure is fixed when the incubator sanctions the loan and can't exceed 60 months (5 years).
• A moratorium of up to 12 months may be given.
• The loan is unsecured, so no guarantee from the promoter or any third party is needed.

You can't use seed funds to build facilities. The money must go to the purpose it was given for.

Choosing your incubators

You don't apply to DPIIT. You apply to incubators that have been approved to give out seed funds under the scheme. The guidelines let you apply to up to three incubators, in order of preference.

The order matters:

• If your first and second choices both select you, your first choice funds you.
• If your first choice rejects you and your second selects you, the second one funds you, and so on.

The FAQ says to pick incubators based on your sector, stage, business needs and goals. The portal's incubator portfolio lists each approved incubator with its city and focus sectors. The portal warns that this information may not be the latest and that some incubators may not appear in the form's drop-down if they can't take more applications, so contact an incubator directly before you rely on it.

Choose carefully. The FAQ says a submitted application is final, and you can't change the order of your incubator preferences later.

The application form, section by section

You apply online, and you don't need to send any physical documents. The FAQ says you log in with the same credentials you used for DPIIT recognition. The portal's startup application walk-through shows a seven-step form:

1. Authorized Representative: name, designation, mobile and email of the person filling the form, plus a board resolution, authorisation letter or PoA (PDF only; the portal gives a sample).
2. Entity Details: auto-filled from your DPIIT recognition and can't be edited here, so fix any errors in your recognition record first.
3. Startup Details: what you're building.
4. Startup Team: team member details, the number of full-time employees, and a list of teams with the full-time headcount in each.
5. Funding Details: the funding instrument, the amount you need, and a funds deployment plan by broad expense category, with amounts and dates.
6. Incubator Preference: up to three incubators, in order. You must pick the funding instrument first to see the list.
7. Upload Documents: an optional video link showing your product or business model and any other relevant documents (PDF only, up to 15 MB), then the self-declaration and Submit.

The walk-through dates from 2021, so labels may have changed by the time a new call opens.

The guidelines say incubators may ask about your team, problem statement, product, business model, customers, market size, funds needed and how you'll use them. Make sure your pitch deck covers all of these. You get an email confirmation once you submit.

Documents checklist

Keep these ready before you start:

• DPIIT recognition certificate, with your recognition details up to date
• Startup India login (the same one used for recognition)
• Authorisation for the person filling the form: board resolution, authorisation letter or PoA, in PDF
• Team details and full-time headcount by team
• Details of any government support already received, to check the Rs 10 lakh limit
• Amount needed and a fund deployment plan by broad expense category
• Pitch deck covering team, problem, product, business model, customers, market size, funds needed and their use
• Optional product or business-model video link
• Any other supporting documents, in PDF (up to 15 MB)

What happens after you submit

1. Shared with your incubators. Your application goes online to the incubators you picked. If it's incomplete, you're asked to resubmit.

2. Eligibility check. Each incubator shortlists applicants against the eligibility criteria.

3. Evaluation by the ISMC. Each incubator's Incubator Seed Management Committee (ISMC) includes a State Government startup nodal team member, a VC or angel representative, industry and academic experts, and successful entrepreneurs. It scores you on:

   • whether there's a real need for the idea
   • how feasible the technical claims and product roadmap are
   • potential impact
   • novelty and IP
   • the team
   • your fund utilisation plan
   • any extra parameters the incubator sets
   • your presentation

   Each incubator can weight these criteria differently.

4. Presentation. Shortlisted startups may be asked to present to the ISMC.

5. Decision within 45 days. The ISMC is meant to select startups within 45 days of receiving the application.

6. Tracking. You can follow your status in real time on your dashboard. Rejected applicants are told by email.

7. Agreement and money. If you're selected, you must sign a legal agreement with the incubator. The quantum and terms are negotiated with the ISMC, and the Committee's decision is final. Funds go into your company bank account. For grants, the first instalment is to be released within 60 days of the incubator receiving your application. Later instalments need an interim progress update and a utilisation certificate.

Once funded, the FAQ says you must update the incubator at least once every 15 days and post updates on the dashboard at least monthly, and submit a final report and audited utilisation certificate at the end. Neither the incubator nor its staff may charge you any fee, in cash or in kind, at any stage. If you run into delays or other trouble, the portal has a grievance form.

Where applications fall short

The guidelines and FAQ point to a few clear reasons an application fails:

• Missing an eligibility condition, for example being over 2 years old, not having DPIIT recognition, Indian promoters holding less than 51%, or having already received more than Rs 10 lakh of government support. There are no exemptions.
• Incomplete applications, which are sent back for resubmission.
• A low score on the ISMC criteria, especially on need, feasibility, team strength and how you plan to use the money.
• Asking above the limits for your chosen instrument: Rs 20 lakh for a grant, Rs 50 lakh for debt or convertible debentures.

FAQ

Is there an application fee for SISFS?

No. The FAQ says there's no application fee. Incubators can't charge selected startups any fee for selection, disbursement, incubation or monitoring.

Can I still apply in October 2026?

No. The last date for startup applications was 31 May 2026. Watch the Seed Fund portal for any new call, and look at other open funding in the meantime.

Do I need to work from the incubator's premises?

No, you don't have to be physically present. The FAQ says that if an incubator monitors you virtually, you need to touch base every 30 days.

Can I reapply if I'm rejected?

Yes. The guidelines say a rejected applicant may apply afresh. The portal FAQ adds that you can reapply 6 weeks after a rejection. The two sources word this differently, so check the portal when you reapply.

What if my startup fails after receiving the grant?

The guidelines accept that not every startup will succeed. For a failed venture, you submit a final report explaining what you learned and why it failed, along with the utilisation certificate. Your agreement with the incubator will have its own clauses on failure, so read them before you sign.

Can someone help me prepare the application?

You can hire help, but the FAQ says the startup pays for any consultant, and hiring one isn't required. If you want support with DPIIT recognition or paperwork, see our services. Our SISFS listing tracks the scheme's status, and you can look at subsidies you may qualify for instead.

Sources

• Guidelines for Startup India Seed Fund Scheme, DPIIT (PDF)
• Startup India Seed Fund Scheme portal: application window notice and form
• Startup India Seed Fund Scheme portal: FAQ
• SISFS startup application walk-through guide (PDF, 2021)
• SISFS incubator portfolio
• PIB, 17 April 2026: startup recognition and flagship scheme update

Cover photo: Musemind UX Agency on Unsplash