Real-World Scenarios & Access

What exactly is non-dilutive funding, and why should an early founder chase it before raising VC?

A starting point

Non-dilutive funding is money you get without giving up equity or control, grants, government schemes, competitions, R&D subsidies, and revenue. In India this is unusually generous: DPIIT-recognised startups can tap the Startup India Seed Fund, state grants, BIRAC/NIDHI R&D money, and tax holidays. Chase it first because every rupee of grant is a rupee you didn't sell your company for.

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Startup India, Government Schemes for Startups

From Startup India (startupindia.gov.in) by DPIIT, Government of India Directory / ongoing

Why we picked it

This is the single official directory of central and state government schemes for Indian startups, the primary source, not a blog summarising it. If you only bookmark one page for non-dilutive funding, make it this one and filter by your sector, stage, and state.

  • Aggregates central schemes (Seed Fund, Fund of Funds 2.0, Credit Guarantee Scheme) plus state and ministry-specific programmes in one searchable place.
  • Links out to the partner desks that actually run the money, BIRAC, Atal Innovation Mission, MeitY Startup Hub, DST NIDHI.
  • Most listed schemes require DPIIT recognition first, so treat recognition as prerequisite step zero.
  • Filter by stage and sector rather than scrolling, the wrong-desk application is the most common reason founders get rejected.
Open startupindia.gov.in →
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India Free Intermediate

Startup India Seed Fund Scheme (SISFS), Official Portal

From Seed Fund Portal (seedfund.startupindia.gov.in) by DPIIT, Government of India Application portal

Why we picked it

SISFS is the most accessible non-dilutive cheque for early Indian startups, and this is where you actually apply. It's genuinely founder-friendly: you apply through incubators, not a government office, and grant money for proof-of-concept has no equity strings.

  • Up to INR 20 lakh as a grant for proof-of-concept, prototype development, and product trials, this portion is truly non-dilutive.
  • Up to INR 50 lakh via convertible debentures / debt for market entry, commercialisation, and scaling.
  • Eligibility: DPIIT-recognised and incorporated not more than 2 years before applying; you can apply to up to 3 approved incubators.
  • Applications flow through the incubator, so choosing an active incubator with a strong track record is half the battle.
Open seedfund.startupindia.gov.in →

People also ask

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