The Indian government has approved the Startup India Seed Fund Scheme (SISFS), which will give beginning phase subsidizing to tech new startup by means of a corpus of INR 945 Cr. The Startup India Seed Fund was reported by Prime Minister Narendra Modi recently to stamp the fifth commemoration of the Startup India activity. The financing will be given to new startup will be given to proof of idea, prototype, product trails, market entry and commercialisation. With the authority gazette notification for the SISFS, the trade service has additionally revealed the eligibility criteria for new startup that wish to apply for the scheme.
Only new startup registered and perceived by the Department for Promotion of Industry and Internal Trade (DPIIT), the usage office for SISFS, will be qualified for the financing. As of this current month, there are 42,813 Indian new startups perceived by DPIIT. New startup established not more than two years prior at the time of application and recognised by DPIIT will be qualified for the plan.The gazette notification additionally incorporates nitty gritty rules for startup hatcheries hoping to partake in the scheme.
The applicant should meet the below mentioned eligibility criteria :-
- The applicant startup should have a business thought to build up a product or some help with the correct market fit, feasible commercialisation, and extent of scaling. Further, new startup should utilize innovation in their center product or services, or plan of action, or appropriation model, or philosophy.
- The notification mentioned that new startup creating innovative /technology solution in sector, for example, social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc., would be given preference.
- New startup should not have received more than INR 10 Lakh of money related help under some other government scheme. This doesn’t include prize cash from competitions and grand challenges, subsidized working space, founder month to month allowance, access to labs, or access to prototyping offices.
- Only new startup which have at least 51% shareholding by Indian promoters at the time of their application to a startup incubator for the scheme, will be eligible for a financial honor.
Benefits of the Scheme
- An eligible startup would get up to INR 20 lakh as an award for approval of proof of idea, or prototype development, or product trials. The award will be disbursed in achievement-based portions. The startup would likewise be eligible for an honor of up to INR 50 lakh through convertible debentures or debt or debt connected instruments, to be used for market section, or commercialisation, or scaling up.
- A year ago, Finance Minister Nirmala Sitharaman reported plans to set up a seed fund for beginning phase new startup. The government proposes to provide early life funding, including a seed fund to support ideation and development of early-stage startups, the minister said during her Union Budget 2020 address on February 01, 2020.
The Union Budget for 2021, the govt announced that the Startup India Seed Fund is positively uplifting news for the startup ecosystem system.