The Government of India often comes up with new schemes for the benefit of their citizens, similarly, the Indian Government has introduced the Startup India Seed Fund Scheme (SISFS). Under this scheme, the authorities will provide financial assistance to start-ups for Proof of Concept, prototype development, product trials, market entry and commercialization. To know more about the scheme, interested users can continue to read the article to the end. To avail the benefits under the scheme, interested candidates can go through the official website at seedfund.startupindia.gov.in. Further in this article, we will provide you a detailed description about the program including Key Highlights, Objectives, Benefits & Features, Eligibility Criteria, Required Documents, Application Procedure of Startup India Seed Fund Scheme, etc.
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About Startup India Seed Fund Scheme
The Department for Promotion of Industry and Internal Trade (DPIIT) has launched the Startup India Seed Fund Scheme 2024. The aim of the Department is to encourage the citizens to start their own businesses. Under this scheme the Government of India will provide capital funds. The government will provide financial assistance of up to Rs. 50 Lakh to the selected business. The scheme aims to provide financial assistance to start-ups for Proof of Concept, prototype development, product trials, market entry and commercialization. This scheme enables these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or try to find loans from commercial banks or financial institutions. This scheme will increase the number of businesses in India and will provide employment opportunities to unemployed citizens.
Key Highlights Of Startup India Seed Fund Scheme
| Name of the Scheme | Startup India Seed Fund Scheme |
| Launched By | The Department for Promotion of Industry and Internal Trade (DPIIT) |
| Objective | To increase the number of business in India and will provide employment opportunities to unemployed citizens |
| Beneficiaries | Citizens of India |
| Benefits | Government of India will provide capital funds to start business |
| State | All States of India |
| Year | 2024 |
| Form of Benefit | Financial assistance |
| Hosting Site | NIC (National Informatics Center) |
| Mode of Application | Online/Offline |
| Official Website | https://seedfund.startupindia.gov.in/ |
Read Also –Startup India Scheme 2024
Objectives Of Startup India Seed Fund Scheme
The objectives of the scheme are as follows:
- The primary objective of launching the scheme is to increase the number of business in India and will provide employment opportunities to unemployed citizens.
- Another objective of the program is to encourage the citizens to start their own business.
- The scheme aims to provide financial assistance to start ups for Proof of Concept, prototype development, product trials, market entry and commercialization.
Benefits & Features Of Startup India Seed Fund Scheme
Here are some benefits & features of the Scheme, which are as follows:
- The scheme enables the startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists, or try to find loans from commercial banks or financial institutions.
- Under this scheme the Government of India will provide capital funds.
- The government will provide financial assistance of up to Rs. 50 Lakh to the selected business.
- Financial assistance of up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, prototype development or product trials will be provided. The grant shall be disbursed in milestone-based installments. These milestones can be related to the development of prototypes, product testing, building a product ready for market launch, etc.
- And up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments will be provided.
- Seed funds shall strictly not be used by startups for the creation of any facilities and shall be utilized for the purpose it has been granted for.
- This scheme will encourage the citizens to start their own business.
Eligibility Criteria
To avail the benefit under this scheme, you should fulfill these eligibility criteria:
- The applicants should be a permanent citizen of India.
- A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application will be eligible.
- Startups must have a business idea to develop a product or a service with market fit, viable commercialization and scope of scaling.
- A startup should be using technology in its core product or service or business model or 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, textiles, etc.
- The startup should not have received more than Rs. 10 lakhs of financial support under any other Central or State Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs or access to a prototyping facility.
- 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.
- 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.
Required Documents
To avail the benefit under this program, you should have these following documents:
- Aadhar Card
- Board resolution/Authorization Letter/PoA
- PAN Card
- GST number
- Bank account details
- Certificate of incorporation/ partnership deed
- Financial statements
- A video about your startup describing your product, service or business model
- Any other relevant documents, as required.
Application Procedure For Startup India Seed Fund Scheme
To apply for the scheme, please follow the below mentioned steps:
- Visit the Official Website at https://seedfund.startupindia.gov.in/
- On homepage click on “APPLY NOW” button.
- Login page will appear on your screen.
- Now click on “Create an Account” option.
- Enter all the required details asked in the application form such as name, email address, mobile number etc.
- Click on “Register” button to complete the registration process.
- Now go back to the page and login using login credentials.
- Now click on the “Apply” option.
- The application form will appear on your screen.
- The applicant must enter all the details on the application form including the name of the business, the type and other important information.
- Click on the “Submit” button to complete the application process.
FAQ’s
What is the key objective of Startup India Seed Fund Scheme?
The primary objective of launching the scheme is to increase the number of business in India and will provide employment opportunities to unemployed citizens.
What is the benefit of this scheme?
The scheme enables the startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists, or try to find loans from commercial banks or financial institutions.
Who launched the SISFS?
The Department for Promotion of Industry and Internal Trade (DPIIT) has launched the Startup India Seed Fund Scheme 2024.