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Startup India Seed Fund Scheme - Proof of Concept Grant

Department for Promotion of Industry and Internal Trade·India

Up to Rs 20 lakh grant for proof of concept, prototype development or product trials, applied for through DPIIT-selected incubators and released against milestones.

What you get

up to ₹2,000,000Cash

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

Equity takenNone, non-dilutive
Strings attachedSeed fund shall strictly not be used by startups for creation of any facilities and shall be utilized for the purpose it has been granted for. The incubator shall execute a legal agreement with the selected startups before the release of the first installment, detailing milestones. A startup selected by an incubator for assistance under this scheme shall not be charged any fees. Any startup will not receive seed support more than once under this head.

Can you apply

VC backingNot required
Referral or partnerRequired
Registered companyRequired
IndividualsNot eligible
Open sourceNot required
CountriesIndia
Before you applyDPIIT Startup India recognition before applying. Incorporated not more than 2 years ago at the time of application. At least 51% shareholding by Indian promoters at the time of application to the incubator, as per Companies Act 2013 and SEBI (ICDR) Regulations 2018. Must not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. Must be selected by a DPIIT-approved incubator; there is no direct application route to DPIIT.

1. A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application 2. Startup must have a business idea to develop a product or a service with market fit, viable commercialization, and scope of scaling 3. 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 4. 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. 5. 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, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility 6. Shareholding by Indian promoters in the startup should be at least 51% at the time of application to incubator for the scheme, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018 7. Any startup will not receive seed support more than once each as per provisions of para 8.1 (i) and 8.1 (ii) respectively

When

Always open, applications reviewed on a rolling basis.

What Department for Promotion of Industry and Internal Trade funds

India's central startup ministry department. Runs the Startup India Seed Fund Scheme, which channels proof-of-concept grants and early scaling capital to DPIIT-recognised startups through a network of government-assisted incubators rather than funding startups directly.

Everything Department for Promotion of Industry and Internal Trade funds →

Details

You cannot apply to DPIIT directly. Applicants apply on the Startup India portal to up to three incubators selected as disbursing partners, in order of preference; each incubator's Incubator Seed Management Committee evaluates and selects startups, then executes a legal agreement and disburses funds. DPIIT grants each selected incubator up to Rs 5 crore for onward disbursal, and not more than 20% of an incubator's total grant may be given to startups as grants.

Apply on Department for Promotion of Industry and Internal Trade