Disclaimer….before you read ahead
The information contained herein is of a general nature and for information purposes only, with the intent of raising awareness around various resources, schemes etc. available for women entrepreneurs in India. It is not intended to address the circumstances of any particular individual or entity. It does not purport to be all-inclusive or necessarily contain all the information that may be relevant for the reader, and may be subject to updation, revision or amendment. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to remain accurate in the future. The reader, therefore, is required to exercise their discretion; and not act on such information without appropriate professional advice after a thorough examination of the particular situation.
Furthermore, we are not a lender and are not authorized by the Reserve Bank of India to act as one. By disseminating the information contained herein, we are not soliciting any borrower or customers for the company or organization mentioned herein nor do we intend to syndicate any capital for the reader of this article.
About this scheme…
Startup India Seed Fund Scheme (SISFS) became operational on 1st April 2021 by Department for Promotion of Industry and Internal Trade (DPIIT), Government of India with the aim of providing financial assistance to Startups for proof of concept, prototype development, product trials, market entry, & commercialization to enable them graduate to a level where they will be able to raise further investments from Angel Investors or Venture Capitalists or seek loans from Commercial Banks or Financial Institutions.
How is it being implemented?
Under this Scheme, direct financial assistance in the form of grant and/or convertible debt is provided to
disbursed through Incubators approved under this Scheme across India that you may find here.
What’s on offer?
I. Product
- Grant, Convertible Debentures / Debt / Debt-Linked Instruments
- Ticket Size
- Grant: up to ₹20 Lakhs
- Convertible Debentures / Debt / Debt-Linked Instruments: up to ₹50 Lakhs
- Disbursements will be based on milestone-based installments
- 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
- No mandatory physical incubation required
II. Purpose
- For Grants:
- Proof of Concept (PoC)
- Prototype Development
- Product Trials
- For Convertible Debentures / Debt / Debt-Linked Instruments:
- Market Entry
- Commercialization & Scaling
III. Borrower Type
- Private Limited Company, One Person Company, Limited Liability Partnership (LLP), Registered Partnership
IV. Security or Collateral or Guarantee or Insurance
- Nil
V. Interest Rate
- Grants: Not applicable
- Convertible Debentures / Debt / Debt-Linked Instruments: Should be not more than prevailing Repo Rate which is currently at 5.25%
VI. Processing Fee
- Nil
VII. Margin Money Requirement
- Nil
VIII. Tenure, Repayments & Pre-Closures
- Tenure
- Grants: Not applicable
- Convertible Debentures / Debt / Debt-Linked Instruments: up to 60 months (5 years) with a moratorium of up to 12 months
- Repayments
- Grants: Not applicable
- Convertible Debentures / Debt / Debt-Linked Instruments: For more information around this, please contact SISFS Team via mean mentioned below
- Pre-payment & Foreclosure Charges
- Grants: Not applicable
- Convertible Debentures / Debt / Debt-Linked Instruments: For more information around this, please contact SISFS Team via mean mentioned below
XI. Turnaround Time
- After the receipt of the application, each Incubator shall evaluate applicants based on their submissions & presentations and select Startups for this Scheme within 45 days
- Scroll here to find more details on the Evaluation Process of Startups
Interested? Read ahead to check your eligibility…
I. Is your Startup DPIIT recognized?
II. Has it been incorporated not more than 2 years ago at the time of application?
- Does your Startup have a business idea to develop, a product or a service, with a market fit, viable commercialization, & scope of scaling?
III. Does your Startup use technology in its core product or service, or business model, or distribution model, or methodology to solve the problem being targeted?
IV. You confirm that your Startup has not received more than ₹10 Lakhs of monetary support (excluding prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility) from any other Central or State Government Schemes?
V. At the time of application, the Indian Founders of your Startup own at least 51% ownership of the Startup?
If your answers to the questions above are an emphatic YES, you are all set to avail grant and/or convertible debt under Startup India Seed Fund Scheme!
So…how big is this scheme and what has been done so far?
I. The Scheme had a total corpus of ₹945 Crores aimed at supporting around 3,600 Startups through 300+ Incubators across India in 4 years
- Latest details on sanctions to other Startups don’t seem to be available in public domain
So, now, how should you go about it?
I. For submitting application, apply online here by clicking on Apply Now
II. For information on Application Process, Evaluation Process and Process Post Selection, refer FAQs here
III. For any queries, please contact SISFS Team via:
OR
- E-mail: dipp-startups@nic.in
OR
- Phone (Toll Free): 1800 115 565
Go on then…and do spread the word!
Best,
Sources:
