NIDHI - Seed Support (SS) program

The NIDHI-Seed Support Programme is administered by the Department of Science & Technology , Government of India, under the umbrella of the National Initiative for Developing and Harnessing Innovations mission. It was launched to provide early-stage financial assistance for technology-driven startups and incubated enterprises, facilitating prototypes, product development, market testing and transition to commercialization. The benefit for your enterprise is that you can access seed-funding, allowing you to de-risk your technology and become investment-ready, even in early phases.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Seed funding support for early-stage technology startups: The programme provides dedicated seed funding to startups that are at an early stage of development and require financial support for prototype building, testing or initial commercial launch. This helps reduce the risks associated with early technological development and accelerates product readiness.
Support only through recognised DST-supported Technology Business Incubators (TBIs): Funding is not provided directly to startups. Instead, the startup must be formally incubated at a recognised Technology Business Incubator supported by DST. This ensures that the startup receives structured mentoring, infrastructure, market access and compliance support along with the funding.
Funding up to ₹25 lakhs for most startups, extendable to ₹1 crore in exceptional cases: The standard seed support limit is up to ₹20–25 lakhs. However, if the startup demonstrates strong innovation, high potential impact or greater technology depth, the TBI may recommend funding up to ₹1 crore, subject to DST approval.
Funding provided through equity, equity-linked instruments or soft loans: Seed funding is offered in multiple forms depending on TBI policies—equity investment, convertible notes, or soft loans with flexible repayment terms. This allows the incubator to align support with the financial structure of the startup.
Support for prototype development, testing, validation and market entry: The fund can be used for prototype refinement, pilot deployments, field trials, regulatory clearances, market testing, limited hiring, and small-scale production necessary for first market entry. This helps the startup reach a stage where it can attract angel or VC funding.
Milestone-based disbursement and monitoring: Funds are released in stages linked to progress milestones set jointly by the incubator and the startup. Regular review ensures that the startup maintains technical, financial and operational discipline.
Focus on Indian-owned and India-registered startups working on innovation-led products: The programme is specifically meant for Indian startups with majority Indian ownership and registered as private limited companies or LLPs. Only innovation-led products or technologies are considered, ensuring the fund is channelled towards impactful, scalable and technology-driven ventures.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Seed-funding quantum	Typically up to ₹ 20-25 lakhs, in select cases up to ₹ 1 crore per startup.	Example: Your startup may receive ₹ 25 lakhs to develop a working prototype of your tech product, or in a special case up to ₹ 1 crore if its impact and readiness are high.
Modes of support	Equity, equity-linked instruments or soft-loan	For example: The TBI takes a small equity stake or issues convertible debentures when providing the funds, or the fund may be a repayable soft loan over a period.
Eligible uses of funds	Proof of concept, prototype development, product trials, market validation, regulatory approvals, IP filing, consultancy, limited hiring.	Example: You may use the funding to build a working version of your device, run pilot tests with customers, file initial patent, hire key engineer (within cap), and work on market entry.
Disbursement and milestones	Funds released in tranches tied to milestones, with monitoring by incubator	Example: On meeting milestone 1 (prototype ready), 50% of funding is released; on milestone 2 (pilot test completed) remaining 50% plus next tranche.
Time-horizon/lock-in	Start-ups are expected to use funds efficiently and show progress; usually remaining in/incubated by the TBI during the support phase.	Example: Your startup remains resident or virtual at the TBI for the support period and submits periodic progress reports.

Eligibility Criteria

Who can apply:

The applicant must be a company registered in India (private limited or LLP as per scheme norms) under eligible categories
The startup must preferably be DPIIT-recognised or applied for recognition (for better position) and incubated at an approved TBI (either physically or virtually) for at least 3 months.
The major portion of shareholding must be held by Indian promoter(s) – typically at least 51% Indian ownership.
The startup must demonstrate a clear value proposition, initial validation or customer-need insight, and readiness for prototype/trial phase.

Who cannot apply:

Indian subsidiaries of multinational companies or wholly-foreign-owned start-ups are generally not eligible.
Businesses purely in trading, real-estate or non-technology domains may not be eligible (the scheme focuses on technology-driven startups).
Startups that have already raised large venture capital or are in advanced commercialization beyond seed-stage may not qualify for the seed support level.

Documents Required

Application form (TBI/incubator portal or NIDHI portal)
Company registration certificate (Private Ltd / LLP)
Details of promoters (PAN, Aadhaar, KYC)
Incubation certificate (proof you are resident or virtual at TBI for required period)
Business plan / project proposal including technology, prototype, market, milestones, budget
Financial statements (if applicable) or projections for new startup
IP details (if any) / technology disclosures
Term sheet or convertible instrument template (if equity support)
Board/resolution for raising seed funding (if required)
Agreement copy signed with TBI and term sheet of seed support (when selected)

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Early-stage startups who want expert help in securing seed funding quickly.

Option 2: Apply via DST-Recognised Incubator (Official Route)

Choose a DST-recognized Technology Business Incubator (TBI).
Submit an application to the incubator including: pitch deck, prototype details, team profile, financial ask, and business plan.
The Seed Support Management Committee (SSMC) of the incubator evaluates the proposal.
If approved, incubator signs a formal agreement (equity/debt/grant structure).
Funds are released in tranches based on progress milestones.
Startup must provide utilization reports, progress updates, and exit/repayment norms as applicable.

Option 3: Incubator-Initiated Support

Incubators may themselves nominate incubated startups for seed support based on performance, technology strength, and market potential.