The leviathan startups saw eye-to-eye—and had some seed money to begin with. That push, while you productize, outsource folks, and get running fast, that is Seed Funding. Seed funding Never came knocking on your door in India—thanks to govt initiatives like the Startup India Seed Fund Scheme (SISFS) and more angel investors, VCs, and incubators.
We are empowering would-be StartupFlora business owners with the power of knowledge, access, and seed capital fundraising—venture capitalists or government schemes.
This blog is bringing you up to speed on all you’d want to know about seed capital in India—what it is, where it comes from, whom can avail of it, and how you can raise your first cheque in a sustainable way.
What it is, Seed Funding
Seed capital is the first formal sum of money that enables a startup to transition from a concept to a product or business ready to scale.
It will be utilized in:
- Minimum viable product (MVP) development
- Early-stage team (founder team)
- Legal documents and incorporation
- Early branding & marketing
- Tech setup, licencing, or product validation
This is seed stage, and money you raise here enable you to tinker and mess around with your idea.
Who offers seed money
Seed money in India can be financed by:
1. Government Schemes
They are used most of all of them, i.e., Startup India Seed Fund Scheme (SISFS). It is funded by DPIIT and incubators and offers seed money to early-stage start-ups ₹20 lakhs for product development and ₹50 lakhs for scaling.
2. Angel Investors
They are venture specialists or high net-worth business persons investing their funds for equity.
3. Accelerators & Incubators
New startup environment with seed funds at the earliest stage, infrastructure, and mentorship to enable the founders to scale faster.
4. Family, Friends & Co-founders
Your friends and family are individuals who get impressed with your idea—and the first approval stamp is seed capital as well.
The Definition of Startup India Seed Fund Scheme (SISFS)
Initiated in 2021 under the Startup India initiative, government-backed Startup India Seed Fund Scheme offers fund support to DPIIT-registered startups with an opportunity to become fundable ones.
Important points:
- Max. ₹20 Lakhs for proof of concept, product development, or generation of the prototype
- Max. ₹50 Lakhs to scale or commercialize
- Distributed through empaneled incubators in India
- Already registered 400+ incubators!
- No repayment is necessary—it’s non-debt, equity-free support!
Government Seed Funding for whom
Your organization should:
- Be DPIIT-approved
- Had earlier investment done to it in the past 2 years
- Not. Never had significant amounts of investment done earlier (less than ₹10 lakh from third-party investors)
- New product or new service in early-stage
- Incubated in a valid Startup India incubator.
Bonus: Already. Startup India, StartupFlora can get you straightaway. Apply to the right documents.
Seed Fund Documents Needed
This is what you’re typically going to need:
| Document | Purpose |
| DPIIT Certificate | Proves Startup India recognition |
| Incorporation Certificate | Business registration proof |
| Founder’s Aadhaar & PAN | ID proof |
| Pitch Deck | Explains the business model |
| Business Plan | Forecast, growth strategy, use of funds |
| Product Demo/Video | Optional but helps a lot |
| Traction Data | If any (user signups, pilot, revenue) |
StartupFlora has guidelines and templates for all of these.
How Much Seed Funding Can You Raise?
Depending on source.
| Source | Typical Funding Amount |
| SISFS | ₹10–50 lakhs |
| Angel Investor | ₹5–100 lakhs |
| Incubator Grant | ₹2–20 lakhs |
| Friends & Family | ₹1–10 lakhs |
Founders put in ₹10 to ₹50 lakhs of capital in seed round, by and large as a thumb rule.
How to Prepare Before You Pitch
Seed investors don’t care about ideas—seed investors wager on entrepreneurs with an idea. This is what to construct:
1. A Simple Pitch Deck
Short, visual, and simple. Provide:
- Problem
- Your solution
- Market size
- Team
- Traction
- Monetization
- Use of funds
2. Business Model
Demonstrate how you will be earning revenues. Not difficult, simple.
3. Validation Error
Waitlist? Web registrations? Pilot buyers? Do it. Shows that you are addressing a genuine problem.
4. Compliance & Incorporation
Legally formed (option Private Limited Company) and DPIIT registered to facilitate government assistance.
Actual Example: Seed Funding Helps
Jaipur health-tech startup utilized ₹15 lakhs under SISFS from StartupFlora. They utilized the money in product development completion, filling people for the tech team, and reimbursement piloting in 2 hospitals.
They’ve raised ₹1 crore pre-Series A from private investors in 6 months.
Seed money is not where you end, it’s where you start.
Related Article: tax exemption for startups
Why Startups? Trust StartupFlora!!
We don’t only fund you, we funding-prep you at StartupFlora.
Here’s how:
- DPIIT registration
- Preparation of pitch deck and recommendations
- Refining the business model
- Incubator facilities used
- SISFS application filing
- Angel network introduction
We have helped more than 1,000+ Indian startups get grants, schemes, and investments.
Seed Funding FAQs
Q: Is seed funding a loan?
No. It’s usually a grant (SISFS) or equity investment by investors.
Q: When do I apply for SISFS?
When you have or are developing an MVP—and your business is less than 2 years old.
Q: Do I repay cash borrowed under SISFS?
No. It’s a no-repay, no-equity government grant.