Article · 10 min read

Startup India Seed Fund Scheme (SISFS): Grant, Tranches and How Disbursement Actually Works

Patron Accounting (CA firm) · Patron Accounting Free Intermediate India

This is the practical explainer that shows the money arriving in four milestone-tied tranches (business plan approved, prototype demoed, beta users on, first customers acquired) with rough rupee splits, so you see concretely why a 20 lakh grant never lands as one payment. Written by a CA, it also spells out the utilization-certificate and progress-report gate that unlocks each release.

• The grant is released in roughly four tranches (about Rs 5-7L, 5-7L, 3-5L, 3-5L) each unlocked by a demonstrated milestone, not on a calendar date.
• Every subsequent tranche requires a progress report plus a utilization certificate; miss a milestone and the remaining money can be withheld entirely.
• Grant funds are ring-fenced to product development, not infrastructure or rent, so a runway plan that leans on grant cash for salaries or office costs breaks the rules and the math.