Startup India Seed Fund Scheme for Incubators 2026: Up to ₹5 Crore Grant & Application Process

At a glance

About the scheme

Administered by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, the Startup India Seed Fund Scheme for Incubators empowers incubation centres to assist innovative startups. With a total national programme outlay of ₹945 crore, the initiative enables incubators to disburse milestone-linked seed grants and debt investments to early-stage ventures for proof of concept, prototype development, trials, and market entry. Incubators play a pivotal role in nurturing these enterprises, providing infrastructure, mentorship, and investor connections without charging any fees from the supported startups.

Benefits

• Milestone-based grant of up to ₹5 crore provided in three or more instalments.
• Additional management fee of 5% of the total seed fund grant to support administrative operations, due diligence, and progress monitoring.
• First instalment of up to 40% of the approved funding commitment.
• Next instalments disbursed within 30 days of submitting proof of milestone achievement once cash-in-hand drops below 10%.
• Empowerment to provide up to ₹20 lakh grant to early-stage startups for prototype development or proof of concept.
• Authority to disburse up to ₹50 lakh in debt or convertible debentures to startups for market entry, commercialisation, or scaling up.

Who can apply (eligibility)

• Must be a registered Society, Trust, Private Limited Company, or a Statutory Body.
• Government-assisted incubators must be operational for at least two years on the date of application.
• Non-government assisted incubators must be operational for at least three years and provide audited annual reports for the last two years.
• Must have seating facilities for a minimum of 25 individuals.
• Government-assisted incubators must have at least 5 startups undergoing physical incubation at the time of application (minimum 10 startups for non-government assisted incubators).
• Must employ a full-time Chief Executive Officer experienced in business development, supported by a competent mentoring team.
• Incubator must constitute an Incubator Seed Management Committee (ISMC) to evaluate startups.
• Must not be disbursing seed funding to incubatees using capital from any third-party private entity.

Who cannot apply

• Incubators that disburse seed funds to incubatees using funds from third-party private entities.
• Use of the scheme grant or management fee for facility creation or physical capital works.
• Incubators failing to utilise at least 50% of the total commitment within the first two years (leads to forfeiture of further drawdowns and refund of unutilised capital with interest).
• Charging any fee in cash or kind from applicant or beneficiary startups under the scheme.

Documents required

• Proof of legal entity registration (Incorporation Certificate, Society Registration, or Trust Deed)
• PAN Card of the incubator entity
• Board Resolution, Authorisation Letter, or Power of Attorney
• Aadhaar Card of the authorised signatory
• Proof of assistance from Central or State Government (if applicable)
• Audited Annual Reports for the last two years
• Incubation agreements executed between the incubator and current startups
• Photographs showing incubator physical facilities and seating arrangements
• Curriculum Vitae (CVs) of full-time incubation centre staff and leadership
• Incubator pitch deck and fund deployment plan with timelines
• Self-declaration certificate from the authorised signatory

How to apply

1. 1Visit the official Startup India portal at seedfund.startupindia.gov.in.
2. 2Register the organisation on the Startup India platform using official contact details if not previously registered.
3. 3Sign in using valid credentials and navigate to the Startup India Seed Fund Scheme section.
4. 4Select the 'Incubator' category to open the online application form.
5. 5Fill in the organisational profile, team details, past incubation track record, and the proposed fund deployment plan.
6. 6Upload all mandatory legal, financial, and operational documents in the prescribed digital formats.
7. 7Submit the application online without paying any application fee and monitor evaluation progress via the user dashboard.

Frequently asked questions