The Indian startup ecosystem suffers from capital inadequacy in the seed and ‘Proof of Concept’ development stage. The capital required at this stage often presents a make-or-break situation for startups with good business ideas.

Many innovative business ideas fail to take off due to the absence of this critical capital required at an early stage for proof of concept, prototype development, product trials, market entry, and commercialisation. Seed Funds offered to such promising cases can have a multiplier effect in the validation of business ideas of many startups, leading to employment generation.

• A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application. To get DPIIT-recognized, please visit the website

• The startup must have a business idea to develop a product or a service with a market fit, viable commercialisation, and scope of scaling.

• The 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, defence, space, railways, oil and gas, textiles, etc.

• Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. This does not include prize money from competitions and grand challenges, subsidised working space, founder monthly allowance, access to labs, or access to 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 Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.

• A startup applicant can avail seed support in the form of grant and debt/convertible debentures each once as per the guidelines of the scheme

1. Up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, prototype development, or product trials. The grant shall be disbursed in milestone-based instalments.

These milestones can be related to the development of prototypes, product testing, building a product ready for market launch, etc.

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2. Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments

3. A startup applicant can avail of seed support in the form of a grant or debt/convertible debentures each once as per the guidelines of the scheme