The Startup India Seed Fund scheme under the Commerce Ministry has disbursed Rs 351 crore to 2,647 startups as of January 31, 2025, according to the official data. Launched in April 2021, the scheme enables financial assistance to startups through select startup incubators. The funding is provided to startups seeking monetary support toward proof of concept, prototype development, product trials, market entry and commercialization.
Launched for a period of four years with a corpus of Rs 945 crore, the scheme has selected 217 incubators with an approved funding of 917 crore, of which Rs 493.2 crore has been provided as January 31, 2025.
The approved incubators with total investment provided, approved Rs 487 crore to 2,647 startups, of which Rs. 351.5 crore was disbursed, informed Jitin Prasada, Minister of State in the Commerce Ministry in a written reply to a question in the Lok Sabha recently.
“Under the scheme, financial assistance to eligible startups is provided through selected incubators. The Experts Advisory Committee (EAC) of the scheme, evaluates and selects incubators for allocation of funds. Each selected incubator under the scheme constitutes an Incubator Seed Management Committee (ISMC), that evaluates and selects startups for seed support,” said Prasada.
Data showed that the maximum beneficiaries under the scheme were in Maharashtra. Incubators picked 470 startups from Maharashtra for Rs 62 crore funding followed by 344 startups in Karnataka with Rs 58.7 crore investment, 262 startups in Tamil Nadu with Rs 34.2 crore investment, 190 startups in Uttar Pradesh with Rs 22.7 crore funding, and 187 startups in Gujarat with Rs 22.5 crore funding.
Further, “more than 16,500 direct jobs (self-reported) have been created by beneficiary startups supported by approved incubators under the scheme,” said Prasada.
Out of the total incubators selected by the government under the scheme, 29 are in Maharashtra with Rs 56 crore disbursed for investment in startups while Gujarat and Karnataka have 22 incubators each with Rs 39.5 crore and Rs 55.2 crore disbursed respectively.