Early-stage capital before you have revenue.
SISFS funds the gap most startups fall into before they have a working product or revenue: proof of concept, prototype development, product trials, and early market entry — funded as a grant, not a loan, and disbursed through DPIIT-approved incubators rather than directly by government.
Grant versus investment — two different instruments
The grant component, up to ₹20 Lakh, funds validation of proof of concept, prototype development or product trials, released in milestone-based instalments rather than a lump sum — you get the next instalment once the incubator confirms the previous milestone is met. The investment component, up to ₹50 Lakh, supports market entry, commercialisation or scaling, structured as convertible debentures, debt, or a debt-linked instrument rather than a straight grant.
Funds do not come from DPIIT directly. A DPIIT-recognised, approved incubator evaluates applications through its Incubator Seed Management Committee (ISMC), selects qualifying startups, and disburses and monitors the funds. Choosing the right incubator to apply through — one active in your sector — matters as much as the pitch itself.
Eligibility is deliberately narrow: DPIIT recognition, incorporation as a private limited company, registered partnership or LLP (not a sole proprietorship or public company), registered no more than two years, turnover not exceeding ₹100 Crore in any financial year, and use of technology in the product, business model, distribution or services. Startups that have already received more than ₹10 Lakh in government grants or aid are not eligible.
Who qualifies
- DPIIT-recognised startup
- Private limited company, registered partnership, or LLP (not sole proprietorship or public company)
- Incorporated not more than 2 years before application
- Turnover not exceeding ₹100 Crore in any financial year since incorporation
- Uses technology in its core product, business model, services or distribution
- Has not received more than ₹10 Lakh in central/state government grants or aid previously
What applicants get wrong
Applying to incubators outside your sector
Funds are disbursed through specific approved incubators, each with its own evaluation focus and sector strength. Applying broadly without matching to an incubator active in your domain wastes cycles; a targeted application to a relevant incubator gets a fairer hearing.
Treating the grant as unconditional
The grant is milestone-based, not paid upfront in full. Each instalment depends on the previous milestone being verified as met by the incubator. A realistic, well-defined milestone plan matters as much as the funding ask.
Missing the prior-funding exclusion
Startups that have already received more than ₹10 Lakh in central or state government grants are excluded. Check this carefully before investing time in an application that will be disqualified on a technicality.
Documents required
Incomplete files cause most multi-week delays. We assemble the full set upfront, in the order credit teams read it.
KYC & constitution
- PAN & Aadhaar of all promoters / partners / directors
- Certificate of incorporation, MOA-AOA or partnership deed
- Board resolution or partners' authority letter
- GST registration & trade licence
Startup documents
- DPIIT recognition certificate
- Incorporation certificate and constitution documents
- Pitch deck, product/prototype details and milestone plan
- Financial statements since incorporation
- Details of any prior government grants or funding received
Applying through an incubator
Incubator matching
We help identify DPIIT-approved incubators active in your sector and stage.
Application and milestone plan
Pitch materials and a credible, verifiable milestone plan prepared for the Incubator Seed Management Committee.
ISMC evaluation
Application evaluated by the incubator's committee; selected startups proceed to agreement and first disbursal.
Milestone-based disbursal
Subsequent tranches released as each milestone is verified complete by the incubator.
Related facilities & deep-dive guides
Every facility below is placed through the same 80+ lender panel. The long-form guides carry the working numbers, worked examples and lender-by-lender detail.
Frequently Asked Questions
The questions our advisory desk is asked most often about Startup India Seed Fund Scheme.
Both instruments exist within the scheme. The grant, up to ₹20 Lakh, funds early-stage validation and is not repayable. The investment component, up to ₹50 Lakh, is structured as convertible debentures or debt for later-stage market entry and scaling.
No. Funds are disbursed through DPIIT-approved incubators, each running its own Incubator Seed Management Committee to evaluate and select startups. You apply to a relevant incubator, not to DPIIT directly.
Sole proprietorships and public limited companies are not eligible. Startups older than two years, with turnover exceeding ₹100 Crore in any year, or that have already received more than ₹10 Lakh in central or state government grants, are also excluded.
No, it is released in milestone-based instalments. Each subsequent tranche depends on the incubator verifying that the previous milestone — a prototype stage, a trial result — has genuinely been achieved.
Yes, DPIIT recognition is a prerequisite. If you are not yet recognised, that registration should be completed first through the Startup India portal before applying to an incubator under SISFS.
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