Startup India Seed Fund Scheme (SISFS)
- klub zero
- May 2
- 5 min read
The Startup India Seed Fund Scheme (SISFS), launched in April 2021, is a flagship initiative by the Government of India designed to back early-stage startups with critical funding support. Managed by DPIIT, the scheme aims to help startups move from idea to market by providing capital for proof of concept, product development, and commercialization. As of December 2024, the government has disbursed over ₹467.75 crore across various incubators, funding over 2,600 startups.
Total Fund Allocation & Disbursement Structure
The Startup India Seed Fund Scheme (SISFS) has a total budgetary outlay of ₹945 crore, allocated over a four-year period from FY 2021–22 to FY 2024–25.
Funding Segregation
Under the Startup India Seed Fund Scheme (SISFS), incubators act as the primary channels for evaluating startup applications and disbursing funds. Instead of giving money directly to startups, the government allocates funds to selected incubators, who in turn screen and support startups with both capital and mentorship.
SISFS supports startups through two types of financial assistance:
1. Grants (Up to ₹20 lakh)
For validation of proof of concept, prototype development, and product trials
Disbursed in milestone-based installments through the incubator
2. Seed Capital (Up to ₹50 lakh)
For market entry, commercialization, or scaling
Provided as convertible debentures, debt, or debt-linked instruments
Total approved incubators: 213
Funding per incubator: Up to ₹5 crore
Eligibility Criteria
For Startups
To receive funding under SISFS, a startup must meet the following criteria:
Criterion | Details |
DPIIT Recognition | Must be recognized as a startup by the Department for Promotion of Industry and Internal Trade (DPIIT). |
Incorporation Age | Should have been incorporated not more than 2 years prior to the date of application. |
Government Funding Cap | Must not have received more than ₹10 lakh of financial support under any other Central or State Government scheme (excluding certain allowances like prize money or subsidized working space). |
Innovative Product/Service | Should be working on an idea involving a product or service with market fit, viable commercialization, and scope for scaling. |
Technology-driven | Must be using technology in its core product, service, business model, or operations. |
Indian Ownership | At least 51% of the shareholding must be held by Indian citizens at the time of application. |
Incubation Status | Should not have been previously supported under SISFS by any other incubator. |
Incubator Allocation Across India’s States and UTs
State/UT | Number of Incubators |
Maharashtra | 28 |
Tamil Nadu | 20 |
Gujarat | 20 |
Karnataka | 19 |
Telangana | 11 |
Delhi | 11 |
Rajasthan | 11 |
Uttar Pradesh | 10 |
Odisha | 10 |
Punjab | 9 |
Haryana | 5 |
Kerala | 5 |
Andhra Pradesh | 6 |
Madhya Pradesh | 6 |
Bihar | 4 |
Goa | 4 |
Himachal Pradesh | 3 |
Chhattisgarh | 2 |
Assam | 2 |
Mizoram | 2 |
Nagaland | 2 |
Puducherry | 2 |
Uttarakhand | 2 |
Jammu & Kashmir | 1 |
Jharkhand | 1 |
Sikkim | 1 |
West Bengal | 1 |
Sector Coverage Under SISFS
The Startup India Seed Fund Scheme (SISFS) is sector-agnostic, meaning it supports innovative startups across all industries. However, based on the trends from startups funded so far, a significant portion belong to certain high-impact, technology-driven sectors. These sectors are aligned with national priorities and demonstrate strong potential for innovation, job creation, and socio-economic development.
Sector | Focus Areas |
HealthTech & MedTech | Medical devices, telemedicine, diagnostics, digital health solutions |
AgriTech & Food Processing | Smart farming, agri-inputs, food logistics, and sustainable agri-practices |
EdTech | Online learning platforms, assessment tools, personalized learning systems |
CleanTech & Renewable Energy | Solar, wind, waste-to-energy, battery storage solutions |
Mobility & EVs | Electric vehicles, smart mobility, logistics tech |
FinTech & Financial Inclusion | Digital payments, lending platforms, insurtech, neobanking |
Waste & Water Management | Recycling, water purification, smart waste tracking |
Social Impact & Inclusion | Women-centric startups, rural tech, affordable access services |
Biotechnology | Industrial biotech, pharma innovation, genomics |
SpaceTech & Defense | Satellite tech, aerospace components, defense-grade innovations |
AI, ML & Data Science | Predictive analytics, automation tools, AI-as-a-service |
Manufacturing & Textiles | Smart manufacturing, sustainable fabrics, productivity tech |
State-wise Distribution of Startups Funded under SISFS (2021–2023)
State/UT | 2021 | 2022 | 2023 | Total Startups Funded |
Maharashtra | 0 | 0 | 419 | 419 |
Karnataka | 0 | 0 | 313 | 313 |
Tamil Nadu | 0 | 0 | 220 | 220 |
Gujarat | 8 | 44 | 84 | 136 |
Delhi | 11 | 27 | 76 | 114 |
Haryana | 5 | 27 | 49 | 81 |
Uttar Pradesh | 0 | 0 | 165 | 165 |
Rajasthan | 0 | 0 | 84 | 84 |
Telangana | 0 | 0 | 145 | 145 |
Madhya Pradesh | 0 | 0 | 98 | 98 |
Bihar | 1 | 11 | 24 | 36 |
Kerala | 0 | 0 | 54 | 54 |
Andhra Pradesh | 0 | 7 | 25 | 32 |
Odisha | 0 | 0 | 67 | 67 |
Punjab | 0 | 0 | 33 | 33 |
Assam | 1 | 9 | 14 | 24 |
Goa | 7 | 6 | 4 | 17 |
Himachal Pradesh | 1 | 2 | 11 | 14 |
Chandigarh | 0 | 4 | 9 | 13 |
Uttarakhand | 0 | 0 | 16 | 16 |
Jammu & Kashmir | 0 | 1 | 3 | 4 |
Jharkhand | 2 | 2 | 2 | 6 |
Mizoram | 0 | 0 | 4 | 4 |
Nagaland | 0 | 0 | 15 | 15 |
Puducherry | 0 | 0 | 6 | 6 |
Sikkim | 0 | 0 | 2 | 2 |
Arunachal Pradesh | 0 | 1 | 0 | 1 |
Andaman & Nicobar Islands | 0 | 0 | 1 | 1 |
Total | 146 | 569 | 1,025 | 1,740 |
Step-wise guide on how to apply
When to Apply?
There is no fixed deadline — applications are accepted on a rolling basis.
Startups and incubators can apply year-round.
Selection and funding decisions are made periodically by the Seed Fund Management Committees at incubators.
Application Process
Register on the SISFS Portal
Create an account using your DPIIT-recognized Startup credentials.
Complete Your Startup Profile
Fill out details including team background, problem statement, solution, product status, market potential, and financials.
Select Incubators
You can apply to up to 3 incubators simultaneously. Choose based on alignment with your sector and location preferences.
Submit Application
Once submitted, the Seed Fund Management Committee (SFMC) at the incubator will review your proposal.
Evaluation & Funding
If selected, you’ll receive funding in milestone-based tranches, and also get access to mentoring and incubation support.
Processing Timeline
Once an application is submitted, the following timeline is generally observed:
Evaluation Period: The Incubator Seed Management Committee (ISMC) of the chosen incubator is expected to evaluate and select startups for seed funding within 45 days of receiving the application.
Fund Disbursement: For startups selected for grants, the first installment should be released within 60 days from the receipt of the application.
Reapplication Policy
If a startup's application is not selected, they are allowed to reapply after 3 months. This interval provides time to address any feedback or improve the application before re-submission.
Tips for a Successful Application
Prepare Thoroughly: Ensure all required documents are complete and up-to-date.
Choose the Right Incubators: Research and select incubators that align with your startup's sector and goals.
Monitor Application Status: Regularly check the SISFS portal for updates on your application.
Be Ready for Evaluation: Be prepared to present your startup to the ISMC if shortlisted.
Strong Proof of Problem-Solution Fit: Real market pain and measurable solution
MVP Ready: Having a prototype or traction (users/pilots) drastically increases chances
Scalability: Be clear about growth potential (unit economics help!)
Team Strength: Highlight technical and business expertise of founders
Simple Yet Powerful Pitch Deck: Don’t overdo jargon — clarity wins
Apply to Incubators Aligned With Your Domain: HealthTech → KIIT-TBI; Agri → RKVY R-ABI, etc.
Comments