Startup India Seed Fund Scheme Explained: Who Can Apply & How to Get Govt. Grants

Starting a business is exciting, but without funding, even the best ideas can fail. Seed funding for startups is the first step to turning an idea into reality. The Indian government understands this and launched the Startup India Seed Fund Scheme to help early-stage entrepreneurs.

In this blog, we’ll explain what the scheme is, who can apply, how to get it, and what other options you have to raise seed money for startups.

What is Startup India Seed Funding Scheme?

The Startup India Seed Fund Scheme (SISFS) is a government grants program for startups. It offers up to ₹50 lakh to help founders with early-stage expenses like:

• Building prototypes
• Testing the product in the market
• Hiring a small team
• Starting basic operations

Unlike loans, this is non-returnable seed money for Indian startups. The goal is to give your business the push it needs in the beginning.

What Is Eligibility Criteria For Seed Funding?

To apply for the Seed Support for startups under SISFS, you must:

• Be a DPIIT-recognised startup
• Be incorporated not more than 2 years ago
• Have an innovative product or idea with market potential
• Not have received more than ₹10 lakh from other sources (excluding prize money or bootstrapping)
• Be working on a product-based or tech-based business (service models are less preferred)

Documents Required to Apply for Seed Funding

To complete the seed fund application process, you’ll need:

• DPIIT Certificate
• Certificate of Incorporation (Private Ltd/LLP/Firm)
• Business Plan and Pitch Deck
• Founder’s KYC (Aadhaar, PAN)
• Revenue Model
• Market Research Data
• Financial Projections

These documents help the incubator or government body evaluate your business before providing seed support for startups.

Top 5 Sources of Seed Funding in India

Looking beyond the government scheme? Here are the top seed funds in India:

1. Startup India Seed Fund Scheme (SISFS) – Government grants for startups, no equity required
2. Angel Investors – Early investors who also provide mentorship
3. Venture Capitalists (VCs) – Some VC firms offer early-stage funding
4. Crowdfunding – Raise funds from individuals online
5. Startup Incubators & Accelerators – Offer mentorship + seed money for Indian startups in exchange for small equity

Why Startups Need Seed Funding?

Early-stage startups often struggle with costs like:

• MVP or prototype development
• Hiring their first employees
• Branding and marketing
• Business registrations

Without funding, it’s tough to even test the idea in the market. That’s why raise seed money for startups is a critical step.

Benefits of Seed Funding Scheme

Here’s why this scheme is a game-changer:

• No equity loss – It’s a grant, not an investment
• Early boost – Helps with testing, hiring, and scaling
• Mentorship – Some incubators also offer business guidance
• Easy application – Transparent seed fund application process
• Credibility – Government backing increases investor trust

Step-by-Step Guide to Raise a Seed Fund

Here’s how to apply and raise seed funding:

1. Get DPIIT recognition for your startup
2. Build a pitch deck and business plan
3. Register on the Startup India portal
4. Apply for the Seed Fund Scheme under a listed incubator
5. Submit documents and attend pitch calls
6. If selected, receive seed money and start executing

Challenges in Raising Seed Money for Startups

Some hurdles to be ready for:

• High competition – Many startups apply for limited funds
• Documentation – Business plans must be detailed
• Equity concern – In case of private seed funds
• Validation – Need market data to prove idea worth

If you're planning to launch a startup, understanding early-stage funding is the first smart step. Use this guide, prepare your pitch, and take advantage of seed support for business through the right platform.

FAQ

1. How can I get seed funding for my startup?
You can get seed funding through government schemes like the Startup India Seed Fund Scheme, angel investors, VCs, crowdfunding platforms, or startup incubators. Prepare a strong pitch deck, apply online, and be ready to present your idea.

2. Who is eligible for the Startup India Seed Fund Scheme?
Any DPIIT-recognized startup that is less than 2 years old, innovative, and has a scalable product idea is eligible. You must not have raised more than ₹10 lakh in external funding before applying.

3. How much funding can I get under SISFS?
You can receive up to ₹20 lakh for product development and up to ₹50 lakh for scaling operations under the Startup India Seed Fund Scheme — all without giving up equity.

4. What documents are required for seed funding applications?
You'll need your DPIIT certificate, company incorporation proof, pitch deck, KYC documents, business model, and financial projections.

5. What are the best seed funding sources in India?

• Top seed funding sources include:\n
• Government grants (like SISFS)
• Angel investors
• VC firms offering early-stage funding
• Crowdfunding platforms
• Startup incubators & accelerators