Government Schemes • 5 min read

SIDBI Innovation Challenge Fund 2026

he SIDBI Innovation Challenge Fund (SICF) 2026 is inviting AI-enabled solutions that help Indian MSMEs through their business lifecycle. Selected solutions can receive up to ₹2 crore each. Applications opened on 26 September 2026 and close on 16 October 2026. That makes this one of the larger single-solution grants open to Indian startups this year. It is also one of the narrowest. SIDBI is not funding AI products in general. It is funding solutions that make it easier for a small business to start, comply, get credit-ready, manage money, and sell. One thing needs saying before you plan around the headline number. ₹2 crore is a ceiling, not a standard award. SIDBI has not published a fixed amount per project, and the sanctioned amount depends on the proposal. The detailed eligibility conditions also sit inside SIDBI's application portal rather than in any public document we could verify. This guide sets out what is confirmed, what is not, who is likely to qualify, and how to make an application worth reading in the week that is left.