Founder guide · Funding

Startup India Seed Fund in 2026: can you still apply?

Updated 30 October 2026By Saksham Agarwal4 min read

Short answer

Not right now. The last date for startups to apply to the Startup India Seed Fund Scheme was 31 May 2026 (Startup India, June 2026). Money is still being paid out to startups that were already approved, but there is no open call for new applicants. If you need early money in 2026, look at incubator programmes, your state’s seed grant, credit-guaranteed loans and angel investors instead, and watch the scheme’s portal for any new round.

What the scheme offered

The Seed Fund Scheme started on 1 April 2021 (PIB, 2024) with a corpus of ₹945 crore (PIB, 2023). It never paid founders directly. The government gave selected incubators up to ₹5 crore each, and the incubators chose which startups to back. A startup could apply to up to three incubators (scheme guidelines).

Stage	Up to	Form
Proof of concept, prototype or product trials	₹20 lakh	Grant
Market entry, commercialisation or scaling up	₹50 lakh	Convertible debentures, debt or debt-linked instruments

Source: Startup India Seed Fund Scheme guidelines.

Who could apply

A DPIIT-recognised startup, incorporated not more than two years before applying.
Indian promoters holding at least 51% of the shares.
No more than ₹10 lakh of monetary support already received under any other central or state scheme. Prize money, subsidised workspace, founder allowances and lab or prototyping access did not count towards this.

Source: Startup India Seed Fund Scheme guidelines.

Where it stands in 2026

By April 2026, 219 incubators had been selected, the full ₹945 crore had been committed, and incubators had approved over ₹605 crore for more than 3,400 startups (PIB, 17 April 2026). The government extended the scheme so approved disbursements and activities can be completed. Startup India’s June 2026 scheme playbook says the last date for startups to apply was 31 May 2026 and that disbursals are ongoing (Startup India, June 2026). If you were already approved by an incubator, your tranches continue on that incubator’s milestones. If you were not, there is nothing to apply to today.

Be careful with anyone selling “Seed Fund applications” now. Check the official portal, seedfund.startupindia.gov.in, before you pay anyone to prepare one. If a new round opens, it will be announced there and by the Press Information Bureau.

Where early money comes from instead

Incubators. Many incubators run their own programmes, grants and investor days, and they are still the route to most government money. Being incubated also helps if the Seed Fund or a similar scheme reopens. There are several in and around the Tricity; see our Tricity page.
Your state’s seed grant. Haryana offers up to ₹10 lakh, and Chandigarh up to ₹7 lakh at the seed stage and ₹12 lakh at early growth. Punjab offered up to ₹3 lakh under its 2022 policy and notified a new policy in March 2026. Each has its own rules about where your startup must be registered. See startup grants in Punjab, Haryana and Chandigarh.
Loans with a government guarantee. Under the Credit Guarantee Scheme for Startups, lenders can get a government guarantee of up to ₹20 crore per borrower. You still repay the loan. See grant, loan or equity.
Angels and funds. Equity, when the business has to grow faster than its own cash allows.

If a new round opens: what to have ready

DPIIT recognition, early, because the age limit (two years from incorporation) runs from the day you incorporate.
An incubator that fits your sector, and a relationship with it before the call opens.
A proof-of-concept plan: what you will build or test, by when, and how you will show it worked.
A budget the incubator can release against milestones. Seed money comes in tranches, not as one cheque.
A clean record of past grants, so you can show you are within the ₹10 lakh limit.

Where LABH fits

Your Funding Opportunity Map, written in week five of our program, checks each central and state scheme against its official source in the week we write it, and tells you which to apply to now, which to prepare for and which to skip. We don’t sit on any committee and we don’t promise money; we make your application the best version of itself.

Questions founders ask

Is the Startup India Seed Fund Scheme closed?

For new applicants, yes for now. Startup India’s June 2026 playbook says the last date for startups to apply was 31 May 2026. Disbursals to startups already approved are continuing. Check seedfund.startupindia.gov.in for any new call.

How much could a startup get from the Seed Fund?

Up to ₹20 lakh as a grant for proof of concept, prototype development or product trials, and up to ₹50 lakh for market entry, commercialisation or scaling up through convertible debentures, debt or debt-linked instruments.

Did the Seed Fund pay startups directly?

No. It worked through selected incubators. Each incubator received up to ₹5 crore and chose the startups it funded. A startup could apply to up to three incubators.

Who was eligible for the Seed Fund?

DPIIT-recognised startups incorporated not more than two years before applying, with at least 51% held by Indian promoters, that had not received more than ₹10 lakh of monetary support under other central or state schemes.

Not sure where your startup stands?

The Startup Diagnostic scores your venture across nine dimensions in one week, with a five-page report and a 45-minute call. ₹4,999 + GST. The first 25-minute call is free.

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Saksham Agarwal is the founder of LABH Advisory in Mohali, a Registered Mentor on BHASKAR (Startup India’s national registry, run by DPIIT) and a member of TiE Chandigarh. LinkedIn

Sources

Checked against these official sources on 30 October 2026. Schemes change, so check the source before you apply.