Category: Govt Schemes

What SISFS actually offers

The Startup India Seed Fund Scheme provides early-stage funding to DPIIT-recognised startups through approved incubators. It is designed for the stage where you are too early for most VCs but need capital for proof of concept, prototype, trials or market entry.

How much you can get

• Up to ₹20 lakh as a grant for proof of concept, prototype or product trials (milestone-based)
• Up to ₹50 lakh for market entry, commercialisation or scaling — via convertible debentures or debt-linked instruments

Eligibility checklist

• DPIIT-recognised startup, incorporated not more than 2 years ago at application
• A business idea with a scalable, tech-enabled product or service
• Not received more than ₹10 lakh of monetary support under any other central/state scheme
• Indian promoters holding at least 51% at application

How selection really works

You do not apply to the government directly — you apply to incubators on the Seed Fund portal (up to three choices). Each incubator runs its own evaluation committee. Strong applications show a clear problem, early traction or a working prototype, and a credible use-of-funds plan tied to milestones.

Treat the incubator pitch like a seed round. They are deploying government money but they evaluate like investors — clarity on the problem and milestones wins.

Need help putting this into action? Book a free 15-minute call with a Vaishnav Catalyst specialist.

What 80-IAC gives you

Section 80-IAC lets an eligible startup claim a 100% deduction on profits for any three consecutive years out of its first ten years. For a profitable early company, that can mean a meaningful runway extension.

Who qualifies

• Incorporated as a Pvt Ltd or LLP between the eligible dates notified by government
• DPIIT-recognised startup
• Turnover under ₹100 crore in the relevant financial year
• Working towards innovation, development or improvement of products/processes/services

The application path

• Get DPIIT recognition first (prerequisite)
• Apply for 80-IAC on the Startup India portal with pitch deck, financials and incorporation docs
• An inter-ministerial board reviews and certifies eligible startups

Common reasons applications fail

Vague innovation claims, missing financials, or a pitch that reads like a services business rather than a scalable product. Frame the innovation clearly and back it with traction.

80-IAC only helps once you are profitable — but apply early. The certificate is what unlocks the benefit when profits arrive.

Need help putting this into action? Book a free 15-minute call with a Vaishnav Catalyst specialist.

A large, overlooked customer

Government and PSUs are huge buyers. Recent policy relaxes prior-experience and turnover criteria for DPIIT-recognised startups, opening the door to first-time vendors.

How to start

• Get DPIIT recognition
• Register on the Government e-Marketplace (GeM)
• Use startup exemptions on prior turnover/experience where available
• Watch relevant tender portals and respond precisely to specs

Public procurement rewards patience and precise paperwork. Your first order is the hardest; references compound after that.

Need help putting this into action? Book a free 15-minute call with a Vaishnav Catalyst specialist.