Top Startup Funding Schemes in India
India’s startup ecosystem is growing rapidly, and the government has introduced several funding schemes to support entrepreneurs at every stage—from idea development to scaling. As of 2025, these schemes have become stronger, better funded, and more accessible. Here’s an updated guide to the top startup funding schemes you should know.
1. Startup India Seed Fund Scheme (SISFS):
The Startup India Seed Fund Scheme (SISFS), launched by DPIIT, supports early-stage startups with funding for proof-of-concept, prototyping, trials, market entry, and commercialization.
Key Features (2025 Update):
- Grants up to ₹20 lakhfor PoC and prototyping
- Up to ₹50 lakhthrough debt-linked or convertible debenture instruments
- For DPIIT-recognized startups less than ~2 years old
- Startup should not have received over ₹10 lakh from other government sources
Why It Matters?
SISFS offers non-equity or quasi-equity funding, allowing founders to build MVPs and validate ideas without giving up ownership early.
2. Fund of Funds for Startups (FFS):
Managed by SIDBI, the Fund of Funds does not directly fund startups; instead, it invests in SEBI-registered Alternative Investment Funds (AIFs), which then invest in startups.
Key Features (2025 Update):
- Total fund size: ₹10,000 crore
- Funds routed through AIFs into startup equity
- Increased focus on women-led and rural startups
Why It Matters?
This boosts venture capital availability, encouraging private AIFs to invest in emerging or high-risk startups.
3. Credit Guarantee Scheme for Startups (CGSS):
The CGSS provides a government-backed credit guarantee for loans given to DPIIT-recognized startups, helping them access debt without collateral.
Key Features (2025)?
- Guarantee coverage provided through NCGTC
- Up to 85% guarantee coverfor smaller loans
- Supports both working capital and term loans
Why It Matters?
Startups without assets or collateral can still obtain bank loans thanks to reduced lender risk.
4. SAMRIDH Scheme (MeitY):
SAMRIDH (Startup Accelerators of MeitY for Product Innovation, Development, and Growth) focuses on digital product-based startups through accelerator partnerships.
Key Features (2025):
- Funding routed through government-approved accelerators
- Strong focus on mentorship, investor networks, and scaling
- Target to support 300+ startups
- Ideal for SaaS, AI, deep tech, and product-first startups
Why It Matters?
Beyond capital, it provides structured acceleration, market access, and technology validation.
5. Atal Innovation Mission (AIM) – NITI Aayog:
AIM drives innovation across India through multiple programs supporting entrepreneurs, startups, and young innovators.
Key Components (2025 Update):
- Atal Incubation Centres (AICs): Provide incubation, mentorship, and seed support
- Atal Tinkering Labs (ATLs): Innovation labs in schools
- Atal New India Challenges: Prize-based challenges for deep-tech innovation
Why It Matters?
AIM is especially useful for deep-tech, social impact, and R&D-focused startups looking for long-term support and incubation.
6. MUDRA Loan Scheme (PMMY):
Under the Pradhan Mantri MUDRA Yojana, micro and small businesses can get collateral-free loans.
Loan Categories:
- Shishu: Up to ₹50,000
- Kishore: ₹50,001 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
Best For:
Startups needing small capital for:
- Working capital
- Inventory
- Initial setup
Why It Matters?
Great for founders who prefer debt over equity dilution in the early stage.
7. State-Level Startup Schemes (Example: Maharashtra's MahaFund 2025):
Many states now operate their own startup funding programs.
Example: MahaFund 2025 (Maharashtra)
- Total fund: ₹500 crore
- Supports seed and growth-stage startups
- Focus sectors: tech, manufacturing, agri-tech, innovation
- Priority groups: women, youth, rural entrepreneurs
- Offers additional incentives like IP support and subsidies
Why It Matters?
State-level schemes provide tailored support and faster access to funds for local founders.
8. IN-SPACe Technology Adoption Fund (Space Startups):
IN-SPACe (Indian National Space Promotion and Authorization Center) runs a special fund for space-tech and deep-tech startups.
Key Features:
- Total fund size: ₹500 crore
- Up to 60%of project cost supported (for startups/SMEs)
- Maximum grant: ~₹25 crore per project
- Focus on reducing dependency on imported space technologies
Why It Matters?
Space startups face high entry costs—this scheme makes innovation more affordable.
How to Choose the Right Scheme?
1. Identify Your Startup Stage:
- Idea stage:SISFS, AIM, SAMRIDH
- Early growth:FFS, CGSS
- Deep-tech/space:AIM, IN-SPACe
2. Check Eligibility:
- DPIIT recognition (where required)
- Age limit (e.g., <2 years for SISFS)
- Prior funding restrictions
3. Use Incubators:
Many schemes operate through incubators, increasing your chances of selection.
4. Prepare a Strong Application:
Include:
- Clear business plan
- Prototype or PoC
- Financial projections
- Defined use of funds
5. Maintain Compliance:
After receiving funding, ensure timely reporting and milestone achievements.
Final Thoughts:
India’s startup funding ecosystem in 2025 is stronger than ever. Government schemes now support innovation across all sectors—tech, manufacturing, deep tech, rural innovation, and even space. With the right scheme and a strong application, startups can secure the financial support they need to scale faster and build meaningful impact.
Disclaimer:
This content is for informational purposes only and should not be considered investment advice.
