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SISFS Seed Fund Allocation Optimizer

Plan how to allocate your SISFS grant across startups — grant vs debt vs convertible debenture — while staying within DPIIT guidelines.

SISFS grant corpus

Max ₹500 L (₹5 Cr) per incubator over 3 years. Incubator contributes ≥15% co-investment match.

Portfolio allocation
Startup nameFund typeAmount (₹ L)
Total disbursed
₹73.0 L
Grant portion
₹33.0 L
Debt / convertible
₹40.0 L
Mgmt fee (10%)
₹7.3 L
Corpus remaining
₹419.7 L

✗ Grant ratio 45% — DPIIT mandates ≥75% of disbursements as grants. Reduce debt/convertible allocations or add more grant-type startups.

SISFS allocation rules
≥ 75%of disbursements must be grants (up to ₹20L/startup)
≤ 25%can be debt or convertible debentures (up to ₹50L/startup)
10%management fee drawn on total disbursed to startups
≤ ₹500Lmaximum corpus per incubator over 3 years

Based on SISFS operational guidelines, DPIIT / SIDBI (2021). Per-startup caps: grant ≤ ₹20L, debt/convertible ≤ ₹50L. Startups must be DPIIT-recognised and incorporated ≤ 2 years. Consult SIDBI fund manager for current year norms.

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Frequently asked questions

What is the SISFS scheme and how much can an incubator receive?

The Startup India Seed Fund Scheme (SISFS) provides seed funding to DPIIT-recognized incubators to disburse to early-stage startups. Each selected incubator can receive up to ₹5 crore over 3 years. The incubator must match at least 15% of the SISFS grant from its own or co-investor funds.

How much can an individual startup receive under SISFS?

Under SISFS, a startup can receive: (1) Grant up to ₹20 lakh for proof of concept, prototype development, or product trials; (2) Debt or convertible debentures up to ₹50 lakh for market entry and commercialisation. A startup cannot receive funds from two different SISFS-funded incubators simultaneously.

What percentage of SISFS funds must go towards grants vs debt?

DPIIT guidelines require that at least 75% of SISFS funds disbursed to startups must be in the form of grants. A maximum of 25% can be deployed as debt or convertible debentures. The incubator receives a management fee of 10% of the amount disbursed to startups.

What are the eligibility criteria for a startup to receive SISFS funding?

A startup must: (1) be DPIIT-recognised; (2) be incorporated for less than 2 years at the time of application; (3) have a validated idea with proof of concept or a working prototype; (4) not have received more than ₹10 lakh in funding from government schemes; (5) not be a subsidiary or sister concern of another company.

Can SISFS funds be used to pay incubator salaries or overheads?

No. SISFS funds must be disbursed to startups only. The 10% management fee is intended to cover incubator administrative costs — staff involved in selection and mentoring, due diligence expenses, and startup support costs. Direct SISFS fund diversion to incubator operations or salaries is a compliance violation.

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