What If Your Startup’s First Investor Was the Government of India?

India's startup ecosystem is getting a significant boost under the Startup India Seed Fund Scheme (SISFS), a flagship program of the Department for Promotion of Industry and Internal Trade (DPIIT). With a vision to bridge the funding gap at the initial stages of startup creation, the scheme is now actively involved in extending grants and investment to meritorious startups across the country.

Key Highlights:

Founders can be entitled to getting a maximum of ₹20 lakh as a proof of concept grant, product testing, and prototype development.

Another ₹50 lakh can be taken as an investment in the shape of convertible debentures or debt-linked products for market penetration, commercialization, and scaling.

The initiative is sector-agnostic but gives special emphasis to startups pioneering in fields such as healthcare, education, agriculture, energy, defense, mobility, and social impact.

Startups must be DPIIT-recognized, not over two years old, and have at least 51% Indian promoter shareholding.

They should not have availed more than ₹10 lakh under other government schemes (except prize money or subsidized working area).

Application Process:

Startups can apply round the clock through the Startup India portal.

They can choose a maximum of three incubators to share their concepts.

Incubators are the custodians of funds and review applications on the grounds of innovation, scalability, and market fit.

Recent Developments: AssisTech Foundation launched India's first focused SISFS fund for Assistive Technology startups with ₹5 crore to be disbursed to 32 ventures over three years—marking a milestone in inclusive innovation.

Sources: YourStory, IndianWeb2, NewsBytes, Mint, VCCircle.