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In a country teeming with entrepreneurial energy and innovation across sectors, access to early-stage capital remains a major challenge. Recognizing this gap, the Indian Government has initiated the Startup India Seed Fund Scheme (SISFS) — a powerful enabler for new-age startups to transform ideas into market-ready products.

✅ What is SISFS?

  SISFS is a government-backed funding initiative aimed at providing seed-level financial support to early-stage startups for proof-of-concept validation, prototype development, product trials, and subsequently, for market entry and scaling. The program is run through approved incubators across India that disburse funds to eligible startups.

  Under the program, the total fund corpus stands at ₹945 crore, and it aims to support roughly 3,600 entrepreneurs through 300 incubators over a four-year span.

💰 What kind of financial support does SISFS provide?

Grant Support (Up to ₹20 Lakh): This non-dilutive grant is meant to assist startups in early experimentation — validating a business idea, building a working prototype, or conducting product trials. Grants are released in milestone-based installments tied to deliverables like prototype completion or trial results.

Debt / Convertible Debentures Support (Up to ₹50 Lakh): For startups looking to launch their product, enter the market or scale operations, SISFS offers up to ₹50 lakh as debt or convertible debenture funding. This helps bridge the gap between prototype and market-ready product, enabling commercialisation without the immediate pressure of equity dilution.

In total, a startup under the scheme can potentially access up to ₹70 Lakh (₹20 L grant + ₹50 L debt/convertible).

🎯 Who is eligible to apply?

To qualify for SISFS funding, a startup must meet the following criteria:

  It must be recognised by DPIIT (Department for Promotion of Industry and Internal Trade).

The startup should be incorporated not more than 2 years ago at the time of application.

The startup must have a business idea that develops a product or service with market-fit, viable commercialisation potential, and scope for scaling.

The startup must use technology in its core product or service, business model, distribution method, or methodology to address the problem it targets.

Preference is given to startups working in sectors like social impact, waste/water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil & gas, textiles, and similar impactful areas.

The startup should not have received more than ₹10 lakh in monetary support from any other Central or State Government scheme (subsidised space, lab-access, founder allowance etc. are excluded from this limit).

At the time of application, Indian promoters should hold at least 51% shareholding as per the relevant laws/regulations.

A startup can avail seed support only once under the scheme — meaning grant and debt/convertible funding each only once.

📥 How does the application process work?

  The application process for SISFS is online through the scheme’s official portal. Startups recognised under DPIIT can apply using their registration credentials.

Startups need to apply through approved incubators. Each incubator has an Incubator Seed Management Committee (ISMC) — comprising experts from industry, academia, government and investors — that evaluates applications and decides on funding.

Startups are allowed to apply to up to three different incubators simultaneously, increasing their chances of selection.

Once selected, milestones are laid out — for grant and later for debt/convertible — and startups must submit progress reports and utilization certificates for continued support.

🌱 Why SISFS matters — especially for startups from Haryana

  Risk-free early capital: For young startups still validating ideas or building prototypes, the ₹20 lakh grant offers a much-needed cushion without diluting equity.

  Bridge to scale-up: With ₹50 lakh debt/convertible support, startups get runway for market entry or scaling operations — often the hardest phase for early ventures.

  Inclusive of deep-tech & social-impact sectors: Given the broad preference for sectors like agriculture, clean energy, biotechnology, healthcare, social-impact etc., Haryana-based startups working in agri-tech, clean-energy, rural-tech or regional problems stand to benefit significantly.

  PAN-India exposure via incubators: Accessing incubators across India means startups from Haryana can network with mentors, investors, and peers — which helps in building scalability, visibility, and chances of follow-on funding.

  Simplicity and clarity: The entire process is online, transparent, and laid out clearly — making it easier for first-time founders or those from smaller cities to apply without needing complex paperwork or prior VC backing.

🚀 How to get started — Actionable Steps for Entrepreneurs

  Register your Startup with DPIIT (if not already done). This is mandatory for SISFS eligibility.

  Check your incorporation date — ensure the company is less than 2 years old at the time of application.

  Shortlist incubators — identify incubators (in Haryana or other states) aligned with your sector and check if they are part of SISFS.

  Prepare a strong business idea / prototype plan — clearly define the problem you are solving, use of technology, market potential, and scalability.

  Apply online to up to 3 incubators — increasing your chances of selection.

  If selected, meet milestones — for grant disbursement (PoC, prototype, trials) and later for debt/convertible funding (market entry/commercialisation).

✍️ Conclusion

  The Startup India Seed Fund Scheme offers a real and tangible pathway for early-stage startups — especially from tier-2 and tier-3 cities — to move from conceptual ideas to market-ready products. For entrepreneurs in Haryana, this could be the boost that transforms a promising idea into a scalable enterprise.

  If you are running or planning to found a startup in sectors like agri-tech, clean energy, biotech, fintech, social impact, healthcare, education or similar, this scheme deserves serious consideration.

  Stay tuned on InvestHaryana.in — we will keep tracking updates, application deadlines and success stories from across India’s startup ecosystem.