The Department for Promotion of Industry and Internal Trade (DPIIT) is undertaking a third-party assessment of 'Startup India Seed Fund Scheme (SISFS)' to see its impact on the ground. In April 2021, the government launched the SISFS with a corpus of Rs 945 crore out of which Rs 611 crore have been allocated to the incubators, of which Rs 61 crore have been given to the startups.
DPIIT Will Completely Utilize Rs 945 crore Fund
The Startup India Seed Fund Scheme has completed two years and it is helping in promoting innovation.
Joint Secretary in DPIIT Manmeet Nanda told reporters here that so far 165 incubators have been selected under the scheme and Rs 611 crore has been approved for them.
"Over 1,000 startups are benefitted from the scheme so far," she said, adding if required the department would seek more funds.
"We will be able to completely utilize the Rs 945 crore fund," she said.
DPIIT Undertaking Third-Party Assessment
She also said that the DPIIT is undertaking a third-party assessment of 'Startup India Seed Fund Scheme' to see its impact on the ground.
The government has allocated Rs 611 crore to incubators and out of that, Rs 61 crore was released to startups under the seed fund scheme so far, an official said on Tuesday. In April 2021, the government launched SISFS with a corpus of Rs 945 crore.
The corpus is divided over the next four years (till 2025) for providing seed funding to eligible startups through eligible incubators across India.
The fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
What is the Startup India Seed Fund Scheme?
The Indian government's Startup India Seed Fund of Funds, which aims to provide financial support to startups and entrepreneurs, has recently made significant strides. The fund of funds has received more than 8,000 applications from various startups across the country since its launch earlier this year.
The initiative aims to provide early-stage startups with the necessary funding to help them get their businesses off the ground. The fund is managed by the Small Industries Development Bank of India (SIDBI), and the government has already committed Rs 945 crore to the program.
The Startup India Seed Fund of Funds has received positive feedback from various industry experts, who believe that it will help boost the startup ecosystem in India. The initiative is expected to create around 2.5 lakh jobs and provide a significant boost to the country's economy.
The program has already approved funding for 114 startups, and the government aims to disburse around Rs 945 crore to over 500 startups over the next few years. With the country's startup ecosystem growing rapidly, the Startup India Seed Fund of Funds is poised to play a crucial role in helping entrepreneurs turn their ideas into successful businesses.