Seeding Success: Unveiling the...

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Seeding Success: Unveiling the Startup India Seed Fund

Seeding Success: Unveiling the Startup India Seed Fund

Startups are a growing trend in India, with many young entrepreneurs looking to establish their businesses and become unicorns. The Indian government has supported these efforts, implementing various initiatives and policies to promote entrepreneurship and innovation. Programs like Startup India, Make in India, and Atal Innovation Mission have been launched to provide financial support, mentorship, and infrastructure for startups. Additionally, the government has also introduced various funding schemes, like Stand-Up India and Mudra Yojana, to provide subsidy loan for small scale industries. These efforts are aimed at nurturing the potential of young minds and enabling them to realize their entrepreneurial dreams, contributing to the growth of the Indian economy.


Easy availability of capital is essential for entrepreneurs at the early stages of the growth of an enterprise. The capital required at this stage often presents a make-or-break situation for startups with good business ideas. However, funding from angel investors and venture capital firms becomes available to startups only after the proof of concept has been provided. Similarly, banks provide loans only to asset-backed applicants. Thus, it is essential to provide seed funding to startups with innovative ideas to conduct proof-of-concept trials.


Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization. This would help those startups reach a level where they can easily get funding from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. The State Government has launched specific startup policies and schemes to help small-scale industries get subsidy on loan.  


With a total outlay of INR 945 crore, the Department for Promotion of Industry and Internal Trade (DPIIT) aims to support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years. Entrepreneurs can apply on the Startup India portal, where an online call for applications is hosted on an ongoing basis. DPIIT-recognized startups can log in using the credentials used during the startup recognition process to apply for the scheme.


Eligibility Criteria for Startups –  

  • Startup must be recognized by DPIIT and incorporated not more than 2 years ago at the time of application.

  • It must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling.
  • It should be using technology in its core product or service, business model, distribution model, or methodology to solve the problem being targeted.
  • Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, and textiles.
  • A startup should not have received more than Rs.10 lakh of monetary support under any other Central or State Government scheme. 
  • Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme, as per the Companies Act 2013 and SEBI (ICDR) Regulations 2018.


Seed Funds to an Eligible Startup by the Incubator Shall be Disbursed as follows:

  • Up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, prototype development, or product trials. 

  • Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt-linked instruments
  • A startup applicant can avail seed support in the form of grants and debt/convertible debentures each once as per the guidelines of the scheme.


Subsidy consultants play a crucial role in assisting startups to access valuable subsidy benefits, particularly business loan subsidy. These professionals are adept at navigating the complex landscape of government subsidy scheme for business, helping entrepreneurs identify and apply for subsidies that align with their business objectives. 


In the context of startup funding, subsidy consultants can prove instrumental in guiding businesses through the intricacies of schemes like the Seed India Fund. SubsidyPro is the most knowledgeable and trusted partner in the subsidy market, offering valuable financial solutions for availing subsidy on business loans.  


Being an expert subsidy consultant, SubsidyPro not only streamlines the application process for these subsidies but also provides strategic insights, ensuring that startups not only secure financial assistance but also leverage it effectively to foster sustainable growth and development. With their expertise, subsidy consultants contribute significantly to the success of startups by unlocking essential financial resources and enabling them to capitalize on initiatives like the Seed India Fund. As these startups flourish, they not only contribute to economic growth but also inspire the next generation of innovators, creating a ripple effect of success in the Indian startup landscape.