SISFS

The Startup India Seed Fund Scheme — a Government of India scheme administered by DPIIT with a corpus of ₹945 crore to provide seed funding to early-stage startups.

The Startup India Seed Fund Scheme (SISFS) is a Government of India scheme administered by DPIIT with a corpus of ₹945 crore designed to provide seed funding to early-stage startups for proof of concept, prototype development, product trials, market entry, and commercialisation. This is one of the most accessible government funding programmes for Indian startups. SISFS provides grants of up to ₹50 lakh per startup: up to ₹20 lakh as a grant (non-dilutive, no equity taken) for proof of concept and prototype development, and up to ₹30 lakh as a convertible note or debt (which may convert into equity at a future round) for market entry and commercialisation. The scheme operates through a network of over 120 approved incubators across India — including IITs, IIMs, NITs, and private incubators — which evaluate applications, disburse funds, and monitor progress. Startups must be DPIIT-recognised, have a viable business idea, and be led by a founder with a clear vision for commercial application. SISFS is particularly valuable because it provides non-dilutive capital at the earliest stages when equity funding is hardest to access.

1. Find a SISFS-approved incubator near you — the list is available on the Startup India portal. 2. Connect with the incubator and present your startup idea. 3. If the incubator shortlists you, prepare a detailed proposal with your business plan, technology stack, market analysis, financial projections, and funding utilisation plan. 4. The incubator evaluates and forwards the proposal to the SISFS technical committee for approval. 5. Upon approval, funds are disbursed in tranches against milestone achievements. 6. Post-funding, the incubator monitors your progress through regular reporting and mentorship meetings.

A first-time founder with a B.Tech in computer science builds a platform that uses AI to help small farmers detect crop diseases through mobile photos. She applies for SISFS funding through a recognised incubator at a nearby engineering college. The incubator shortlists her after a pitch presentation, helps her refine the proposal, and forwards it to the SISFS committee. She is awarded ₹20 lakh as a grant for prototype development and ₹15 lakh as a convertible note for market entry — ₹35 lakh total. The grant funds six months of development, and the convertible note helps launch a pilot across 50 villages. The incubator provides monthly mentorship and connects her with agriculture domain experts.