In this guide
As of the end of October 2026, treat the Startup India Seed Fund Scheme (SISFS) as closed to new startup applications. The official portal notice gave 31 May 2026 as the last date for startups to apply, and 30 June 2026 for incubators to finish selecting startups. We could not find an official notice of a new application round.
This guide is for early-stage founders who were planning to apply, or who have been told the scheme is still open. It explains what SISFS offered, what we could not confirm, and which other funding routes may suit your stage.
What Was the Startup India Seed Fund Scheme?
SISFS is a central government scheme with a total outlay of ₹945 crore. It did not pay startups directly. The money went through incubators approved by the Department for Promotion of Industry and Internal Trade (DPIIT), and those incubators selected the startups.
| Stage | Support offered | Form of support |
|---|---|---|
| Proof of concept and prototype work | Up to ₹20 lakh | Grant, released in stages |
| Market entry and scaling | Up to ₹50 lakh | Debt or convertible instruments |
| Support to each incubator | Up to ₹5 crore | Paid in instalments for its group of startups |
To qualify under the scheme guidelines, a startup had to be DPIIT-recognised, incorporated not more than 2 years before applying, have at least 51% Indian promoter shareholding, and not have received more than ₹10 lakh in monetary support from any other central or state government scheme.
Is SISFS Open for Applications Right Now?
Here is what we found, and how much weight to give each point:
| Source | What it says | How to treat it |
|---|---|---|
| Official SISFS portal notice | Startups' last date was 31 May 2026. Incubators to complete selection by 30 June 2026 | The strongest evidence we found |
| Status guides from 2026 | Applications closed, and no new round announced | Fits the portal notice |
| One current-affairs website | Scheme extended to March 2028, with ₹1,000 crore more | Not confirmed by any official source we found |
So do not plan your cash flow around SISFS. Check the official portal at seedfund.startupindia.gov.in before relying on any article, including this one. If a new round opens, we will update this page.
What If Your Startup Was Already Selected?
Being selected before the deadline is different from applying now. Reports say disbursements to selected startups are continuing through their incubators, in stages linked to milestones.
If this is your situation:
- Ask your incubator for the next milestone and payment date in writing.
- Keep your bills, reports and bank records ready, as later stages depend on them.
- Keep the startup's details current on the portal.
- Talk to your incubator early if a milestone is slipping.
What Are the Alternatives to SISFS?
None of these is an exact replacement. Some are loans, and some require you to give up a share of your company.
| Option | What it is | Best for | What to watch |
|---|---|---|---|
| State startup schemes | Seed grants or support from state governments | Founders with a strong local base | Rules differ by state, and some do not allow you to combine grants |
| Incubator and accelerator programmes | Small funding, mentoring and networks | Very early teams | May take a small equity stake |
| Angel investors | Equity funding from individuals | Teams with early traction | You give up ownership |
| Mudra loan | Collateral-free loan up to ₹20 lakh (Tarun Plus) | Small businesses with income to repay | The ₹10L–₹20L upper tier is only for repeat borrowers who repaid a previous Tarun loan |
| CGTMSE-backed loan | Bank loan with a credit guarantee up to ₹10 crore | Registered MSMEs with a bankable plan | The bank still makes the lending decision and charges an annual guarantee fee |
| PMEGP | Bank loan (up to ₹50L manufacturing / ₹20L services) with 15%–35% margin money subsidy | First-time individual/proprietorship micro units | Pvt Ltd companies, LLPs and partnerships do not qualify; check portal status as fresh applications were paused in Oct 2026 |
| Credit Guarantee Scheme for Startups (CGSS) | Collateral-free loan guarantee up to ₹20 crore per borrower | DPIIT-recognised startups with some revenue | Loans go through member banks, NBFCs or AIFs, not directly from the government |
You may also hear about the Startup India Fund of Funds 2.0, a ₹10,000 crore scheme. It invests in registered Alternative Investment Funds, not in startups directly. So a founder would approach those funds, not the government.
If you want help comparing central and state options, explore our government grants support, startup seed fund advisory, and SISFS readiness page.
To understand the loan options better, read our guides on CGTMSE vs Mudra and the CGTMSE loan scheme.
Which Option Fits Your Stage?
| Your stage | Start by looking at |
|---|---|
| Idea only, no prototype | Incubators, accelerators and state schemes |
| Prototype ready, no revenue | State grants, incubators and angel investors |
| Early revenue | Mudra or CGTMSE-backed loans, and angel investors |
| Steady revenue, need working capital | Bank working capital, term loans or CGSS-backed debt |
| New individual/proprietorship micro unit in manufacturing or services | PMEGP, once you confirm the portal is accepting fresh applications |
What Should You Prepare While You Wait?
Most of this work helps with any route you choose, so it will not go to waste if the scheme stays closed.
How to Spot Misleading Funding Offers
Scheme names attract misleading offers, especially after a deadline passes. Be careful if someone:
- Says SISFS is open but cannot show you a current official notice.
- Guarantees approval, or a fixed amount of funding.
- Says they have a "government quota" or an inside contact.
- Asks you to pay a personal account instead of the company's account.
- Calls themselves a government agency.
Check the facts on the official portal yourself. AarambhGrow is a private consultancy and is not part of any government body. We can help you prepare, but we cannot guarantee any funding decision.
Frequently Asked Questions
What was the last date to apply for SISFS?
The official portal notice gave 31 May 2026 as the last date for startups to apply, and 30 June 2026 for incubators to complete selection. We found no official notice of a new round up to the end of October 2026. Check the official SISFS portal for any update.
Has SISFS been extended to 2028?
One current-affairs website reported an extension to March 2028, but we could not confirm this from an official source, and later guides still describe applications as closed. Treat it as unconfirmed. Only rely on a notice from DPIIT or the official SISFS portal before making plans.
How much funding did SISFS offer?
SISFS offered up to ₹20 lakh as a grant for proof of concept and prototype work, and up to ₹50 lakh as debt or convertible instruments for market entry and scaling. Funds went through approved incubators in stages, not directly from the government as one payment.
Can I still get money if I was already selected?
Reports indicate that disbursements to selected startups continue through their incubators, based on milestones. Your agreement and incubator decide the details. Ask your incubator for the next milestone and payment date in writing, and keep your bills and progress reports ready to submit.
What is the best alternative to SISFS?
No single option suits every startup. Very early teams may look at state schemes and incubators. Teams with some traction may approach angel investors. Businesses with income to repay a loan may consider Mudra or a CGTMSE-backed bank loan. Your stage and repayment ability should decide this.
Can AarambhGrow guarantee startup funding?
No. Funding decisions rest with the relevant incubator, investor, bank or government body. AarambhGrow can help you assess your options and prepare your documents and business plan, so that you approach the right source with a clearer application.
Final Takeaway
Plan as if the Startup India Seed Fund Scheme is closed until an official notice says otherwise. Use this time to prepare your business and look at the options that fit your stage. That preparation will help you whichever funding route you take, and if a new round does open, you will be ready to apply.
Not sure which funding route fits your startup?
AarambhGrow can review your stage and plans, then help you prepare for the options that suit you.
Sources & legal note
This article is educational and should not be treated as a substitute for financial, legal or tax advice. Scheme status, limits and rules can change. Review the latest official notices before applying.