SIDBI Innovation Challenge Fund 2026
By Small Industries Development Bank of India (SIDBI)
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Quick Answer
SIDBI's Innovation Challenge Fund invites AI-enabled solutions that support MSMEs across their lifecycle, with fund support of up to ₹2 Crore.
- Funding amount
- Up to ₹2 Cr
- Funding type
- Grant
- Application deadline
- 17d — 16 Oct 2026
- Location
- Open to startups registered in India
About this grant
The SIDBI Innovation Challenge Fund (SICF) is a pioneering digital platform established to foster transformative ideas and achieve significant developmental impact across India. As a competitive mechanism, SICF aims to crowd-source innovative, outcome-oriented solutions that address critical socio-economic challenges, particularly within the Micro, Small, and Medium Enterprises (MSME) sector. Rooted in SIDBI's core mandate as a development finance institution, the Fund is dedicated to inclusive growth and sustainable development, supporting visionary entities capable of translating novel ideas into scalable impact. SICF is designed to empower innovators, enterprises, and changemakers by bridging crucial funding gaps, thereby enabling the successful implementation of breakthrough solutions. At its heart, SICF champions Inclusive, Innovative, and Impactful (I3) interventions. It prioritizes projects that foster sustainable enterprise creation, leverage cutting-edge innovation and technology, and mobilize market-driven ecosystems to unlock economic opportunities for underserved and aspiring communities.
Beyond merely a funding mechanism, SICF acts as an enabler of change, nurturing bold thinking, rewarding ingenuity, and accelerating the journey from concept to measurable impact. By aligning capital with purpose, SICF strives to build resilient, future-ready solutions that contribute significantly to India's development narrative and the vision of a 'Viksit Bharat'. Through various windows, SICF has already supported 28 inclusive, innovative, and impactful projects focusing on capacity building, enterprise creation, market linkage, credit connect, and job creation, transforming over 12,000 lives, with beneficiaries predominantly including Women, Tribals, Divyangjans, Artisans, Disaster Victims, and Manual Scavengers. This cohort specifically seeks Artificial Intelligence-enabled Prototype Solutions for MSME Lifecycle Support, addressing objectives such as improving MSME access to reliable business guidance, simplifying enterprise setup and compliance, enhancing credit readiness and financial management, strengthening sales and market access, and providing inclusive digital assistance. The goal is to reduce information asymmetry and generate measurable outcomes across the MSME lifecycle, identifying proven AI models for wider institutional adoption and contributing to the UN's Sustainable Development Goals.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The Small Industries Development Bank of India (SIDBI) is the government-owned development bank for India's micro, small and medium enterprises. It was set up on 2 April 1990 under an Act of Parliament and is headquartered at SIDBI Tower on Ashok Marg in Lucknow, with offices in…
Learn moreBenefits & Funding
- Amount
- Up to ₹2 Cr
- Fund type
- Grant
- Equity
- Equity-free
- Repayment
- Non-repayable
What You Get
SICF offers fund support of up to ₹2 Crore for implementing the selected solution. This cohort's application category is Scale-up / Replicable Interventions, and the theme is AI-enabled prototype solutions for MSME lifecycle support. SIDBI has not published a fixed amount per project — ₹2 Crore is the ceiling, and the amount sanctioned depends on the proposal.
- Bootstrap friendly
- Yes
Application Process
- 1
Apply online
Register on SIDBI's portal and submit your proposal before 16 October 2026.
You - 2
- 3
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the primary objective of the SIDBI Innovation Challenge Fund (SICF)?
The SICF aims to catalyze transformative ideas and drive measurable developmental impact by crowd-sourcing pioneering, outcome-oriented AI-enabled solutions that address pressing socio-economic challenges within the MSME sector, contributing to inclusive growth and a 'Viksit Bharat'.
What kind of solutions is SICF looking for?
SICF is specifically looking for AI-enabled Prototype Solutions for MSME Lifecycle Support. These solutions should simplify enterprise setup, compliance, credit readiness, financial management, market access, and provide inclusive digital assistance to MSMEs.
Who can apply to SICF?
The call invites innovators and enterprises with AI-enabled solutions for MSME lifecycle support, under the Scale-up / Replicable Interventions category. SIDBI's program page does not list detailed entity or turnover criteria, so confirm on the application portal.
What is the maximum funding available through SICF?
Fund support of up to ₹2 Crore may be considered for implementing the selected solution.
Is there a specific deadline for applications?
Yes, applications for the 2026 cohort opened on 26 September 2026, and the application deadline is 16 October 2026.
What are the core values championed by SICF?
SICF champions the ethos of Inclusive, Innovative, and Impactful (I3) interventions, prioritizing projects that foster sustainable enterprise creation, leverage cutting-edge technology, and mobilize market-driven ecosystems for economic opportunities.
Sources
Data on this page is compiled from official program and provider references.
