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Startup India Seed Fund Scheme - Market Entry and Scaling Investment

Department for Promotion of Industry and Internal Trade·India

Up to Rs 50 lakh for market entry, commercialization or scaling up, given as convertible debentures or debt rather than as a grant, through DPIIT-selected incubators.

What you get

up to ₹5,000,000Equity investment

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

Duration5 years
Equity takennot published
Strings attachedFor startups being supported through convertible debentures, or debt, or debt-linked instruments, funds shall be provided at a rate of interest of not more than prevailing repo rate. The tenure should be fixed at the time of sanctioning the loan by the incubator, which shall be not more than 60 months (5 years). A moratorium of up to 12 months may be provided for the startups. Because of the early stage of the startups, this shall be unsecured and no guarantee from promoter or third-party will be required.

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. 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 5. Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme 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

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

This is the second, non-grant tranche of the Startup India Seed Fund Scheme and carries different terms from the Rs 20 lakh proof-of-concept grant: interest is capped at the prevailing repo rate, tenure is fixed at sanction and capped at 60 months, and a moratorium of up to 12 months may be provided. It is unsecured and no promoter or third-party guarantee is required. Conversion terms for the convertible debentures are not specified in the scheme guidelines.

Apply on Department for Promotion of Industry and Internal Trade