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Seed Support Scheme: Financial Assistance for Startups and MSMEs

Did You Know? Over 63 million MSMEs contribute nearly 30% to India's GDP, yet thousands of them fail at the early stage due to a lack of funding. That's exactly where the Seed Support Scheme steps in.

Whether you're building an agritech platform or a health-tech app, early-stage funding is the fuel that transforms ideas into impact.

The Seed Support Scheme for startups is a government-backed initiative that provides seed capital, infrastructure, and mentorship to innovative businesses in their formative years.

What is the Seed Support Scheme?

The Seed Support Scheme is a government initiative by the Department of Science and Technology (DST), under the National Science & Technology Entrepreneurship Development Board (NSTEDB). It provides seed funding (₹10–₹50 lakh) to early-stage startups and MSMEs via DST-approved Technology Business Incubators (TBIs).

This funding is non-collateral, non-dilutive, and includes access to:

  • Incubation infrastructure
  • Expert mentorship
  • Government and investor networks

Looking to access public tenders too? Start with GeM registration.

Seed Support Scheme financial assistance

Why Early-Stage Seed Funding Matters

  • 90% of startups fail due to lack of capital
  • Startups with seed funding are 3x more likely to raise VC rounds
  • Helps test MVPs, validate ideas, and build product-market fit
  • Provides risk-free growth capital without giving up equity

Want more funding options? Visit our Government Grants portal.

How Seed Support Scheme Work?

The scheme is implemented through DST-approved Technology Business Incubators. Here’s how it works:

The scheme is administered by approved TBIs across India. Here’s how it flows:

Step-by-Step Process

  • Shortlisting by the TBI:
    Based on your startup’s potential
  • Funding disbursed in stages:
    (₹10–₹50 lakh) tied to milestones
  • Mentorship & Incubation:
    Including co-working, labs, and investor meets

Still raising capital? See our NBFC loan options for startups.

Who Can Apply for the Seed Support Scheme?

To apply, startups must:

  • Be registered under Indian law (Startup/Private Limited/MSME)
  • Be incubated in a DST-approved TBI
  • Work on an innovative, scalable product or service
  • Be at ideation, prototype, or early revenue stage
  • Show clear social/market impact potential

Need compliance support? Get MSME certification for funding eligibility.

Key Benefits of the Seed Support Scheme

Non-Collateral Funding

No equity dilution or asset requirement

R&D to Launch Use

Use funds for MVP, hiring, market testing

Access to Incubators

Use labs, shared infra, mentor network

Investor Readiness

Prepares you for Series A and beyond

Learn how to pitch better in our MSME founder workshops.

Documents Required for Application

Prepare the following when applying for the Seed Support Scheme:

  • MSME/Startup registration
  • Business plan
  • Pitch deck
  • Financial projections
  • Proof of incubation
  • Prototype or concept note

Need help with your proposal? Use our Pitch Deck Creation Service.

How to Apply for the Seed Support Scheme in 2025

  • Step 1: Locate an expert There are several consultants and experts helping with finance, to get the right help get in touch with the team at Egniol.
  • Step 2: Build a Proposal Include your business plan, problem-solution fit, market analysis, and use of funds. If you are confused about it, Egniol can help you present convincing pitch-decks for funding.
  • Step 3: Submit The team will submit your application with your proposal and required documents.
  • Step 4: Evaluation If selected, funding will be disbursed in tranches aligned with business milestones.

Already planning ahead? Don’t forget to explore MSME loans for long-term growth and working capital needs.

Real-Life Success Stories

Agritech Innovation

An agritech startup used ₹30 lakh from the Seed Support Scheme to scale IoT-based precision farming. Today, they’ve empowered 10,000+ farmers and increased yields by 25%.

Health-Tech Leap

With ₹45 lakh in seed support, a health-tech startup built an AI diagnostics tool now used by 50+ hospitals across India. These examples show how the Seed support scheme for startups turns vision into validated ventures.

Want to join their success? Start with business registration.

FAQs on Seed Support Scheme

Q1. What is the Seed Support Scheme?

A DST initiative that provides seed funding to startups via approved incubators.

Q2. How much funding is available?

Startups can receive ₹10–₹50 lakh in tranches based on milestones.

Q3. Is this funding repayable?

Most incubators offer grants or soft loans—no equity or collateral needed.

Q4. Who is eligible?

Startups or MSMEs currently incubated in DST-approved TBIs.

Final Thoughts: Why You Should Apply Now

The Seed Support Scheme is a springboard for startup founders ready to turn ideas into reality. With non-dilutive funds, hands-on mentorship, and startup infrastructure, this is one of India's most empowering government-backed programs.

Ready to scale?Contact Egniol for expert help with application, documentation, and incubator tie-ups.

Looking for more opportunities to fund your startup? Browse our resources on Government Grants, MSME Certification, and Pitch Deck Preparation to make your journey smoother.

Disclaimer: The information presented in this blog is sourced from various online platforms and government portals.

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