Startup Grants in India by Stage: What SISFS, BIRAC BIG and NIDHI PRAYAS Actually Fund

Quick answer: NIDHI PRAYAS 2.0 funds prototypes (up to Rs 20 lakh, or Rs 40 lakh for deep-tech), BIRAC BIG funds biotech from ideation to proof of concept (up to INR 50 lakh), and SISFS gives up to Rs 20 lakh as a grant. SISFS's scale-up support of up to Rs 50 lakh is debt or convertible debentures, not a grant.

For founders looking at startup grants in India, three central-government schemes split cleanly by stage: prototype funding from DST, a biotech ignition grant from BIRAC, and the Startup India Seed Fund Scheme for proof of concept and market entry. SISFS requires DPIIT recognition before you apply, and SISFS support and BIG can each be availed only once. This guide reads the official guideline documents and sorts the three by stage, so you can match a scheme to where your startup actually is.

Terms used here. DPIIT recognition: the government's certificate that an entity is a startup, required for SISFS. Grant-in-aid: money given for a project, as under BIG. Convertible debentures: debt that can later convert to equity, one form of SISFS scale-up support. PMU: programme management unit; the NIDHI PRAYAS 2.0 page lists SINE IIT Bombay.

Startup grants India at a glance: which scheme fits which stage

Scheme	Stage	Max amount	Grant or debt	Who can apply
NIDHI PRAYAS 2.0 (DST)	Idea to functional prototype	Up to Rs 20 lakh; up to Rs 40 lakh at Advance PRAYAS Centres for deep-tech or advanced prototypes	Prototype funding (terms in the programme guidelines)	Innovators and startups, through PRAYAS Centres
BIRAC Biotechnology Ignition Grant (BIG)	Biotech ideation to proof of concept	Up to INR 50 lakh	Grant-in-aid	Company or LLP registered under the Companies Act, incorporated not earlier than five years before the call launch
Startup India Seed Fund Scheme (SISFS)	Proof of concept, prototype development, product trials	Up to Rs 20 lakh	Grant, in milestone instalments	DPIIT-recognised startups incorporated not more than two years ago
SISFS scale-up component	Market entry, scale-up	Up to Rs 50 lakh	Convertible debentures or debt	Same eligibility as the SISFS grant

Step zero: DPIIT recognition

The Startup India Seed Fund Scheme is open only to DPIIT-recognised startups, so founders targeting it should treat recognition as step zero. BIRAC BIG sets its own eligibility in its guidelines (covered below), and NIDHI PRAYAS 2.0 eligibility sits in its programme guidelines.

Recognition is available to a private limited company, a partnership firm, an LLP or a cooperative society. An entity counts as a startup for up to ten years from the date of incorporation, extended to twenty years for deep-tech startups. Its turnover must have stayed below INR 200 crore in every previous financial year, or below INR 300 crore for deep-tech startups. The entity must be working on innovation or improvement of products, services or processes, and it must not have been formed by splitting up or reconstructing an existing business.

The application is made on nsws.gov.in using the form titled "Registration as a Startup". There is no fee for recognition.

Idea and prototype stage: NIDHI PRAYAS 2.0

For founders looking at startup grants in India for idea-stage work, NIDHI PRAYAS 2.0 is built for this stage: it supports ideas through to functional prototypes. The programme runs through PRAYAS Centres, which can support an innovator or startup with up to Rs 20 lakh. A separate set of Advance PRAYAS Centres handles deep-tech and advanced prototypes, where the ceiling rises to Rs 40 lakh.

The programme page, last updated 20.05.2026, lists SINE IIT Bombay as the PMU. Detailed eligibility criteria and the application process sit in the programme guidelines and with the individual PRAYAS Centres, so read the current guidelines and check with the centre you plan to approach before applying.

Biotech idea to proof of concept: BIRAC BIG

The Biotechnology Ignition Grant is BIRAC's grant-in-aid for biotech startups: up to INR 50 lakh over 18 months to move from ideation to proof of concept. The current guidelines are Version 9, dated October 2025.

What it covers. BIG supports seven categories: devices and diagnostics; drugs including drug delivery; industrial biotech; agriculture; biosimilars and stem cells; vaccines; and bioinformatics. The guidelines encourage projects that combine biotech with engineering, AI, sensors, automation or robotics. They exclude basic research, projects with low novelty, and late-stage clinical or field trials - and BIG is not a fellowship.

Who can apply:

• A company or LLP registered under the Companies Act.
• Incorporated not earlier than five years before the call launch.
• At least 51% owned by resident Indian citizens or Indian companies.
• If the startup does not have its own laboratory, it must be incubated.
• The project leader must hold at least an undergraduate degree and must be a shareholder in the applicant entity.
• BIG can be availed only once.

How the money moves. The grant is released in three to four milestone-linked instalments: INR 20 lakh on signing the agreement, one to two further instalments of up to INR 20 lakh, and up to INR 5 lakh on completion. The final tranche is a reimbursement, paid after the final utilisation certificate and completion report are submitted - so the closing stretch of the project is spent first and claimed later.

Calls and partners. BIRAC runs a national BIG call at least twice a year, typically on 1 January and 1 July, with each call typically open for about 30 days. Applications are online only, through birac.nic.in, and the scheme is implemented through BIG Partners. The eight BIG Partners are C-CAMP Bengaluru, FITT New Delhi, IKP Knowledge Park Hyderabad, KIIT BioNEST, Venture Center Pune, FIRST IIT Kanpur, SINE IIT Bombay and a-IDEA NAARM. One condition worth noting: during the 18-month project, the startup must meet at least two investors.

Proof of concept to market: Startup India Seed Fund Scheme

SISFS was set up to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialisation. The money does not come from DPIIT directly: the seed fund is disbursed to startups through eligible incubators across India.

The grant part: up to Rs 20 lakh

For proof of concept, prototype development or product trials, a startup can receive up to Rs 20 lakh as a grant, released in milestone-linked instalments.

The debt part: up to Rs 50 lakh

For market entry and scale-up, the ceiling is Rs 50 lakh - but this comes as convertible debentures or debt, not a grant. Where it is structured as debt, the interest rate cannot exceed the repo rate, the tenure can be up to 60 months with a moratorium of up to 12 months, and the loan is unsecured.

Who can apply

• The startup must be DPIIT-recognised and incorporated not more than two years ago.
• Technology must be part of the core product or service, the business model, the distribution model or the methodology.
• The startup must not have received more than Rs 10 lakh in monetary support under any other central or state government scheme; prize money, subsidised workspace, a founder's monthly allowance and access to laboratories do not count towards this limit.
• At least 51% of the shareholding must be with Indian promoters.
• Each form of support - the grant and the debt component - can be availed only once.

Preferred sectors in the guidelines include social impact, waste management, water management, financial inclusion, education, agriculture, healthcare, energy, mobility, defence and space.

How to apply

Applications are made through the online application call on the Startup India portal. You can apply to up to three incubators, in order of preference. Incubators are to complete selection within 45 days, and the first instalment of the grant is to be released within 60 days of the application. Incubators may not charge applicants any fee, in cash or in kind, for selection, disbursement, incubation or monitoring. If an application is rejected, the startup can apply afresh. One restriction applies to how the money is used: seed fund money cannot be used to create facilities.

Grant or loan? The rules that trip founders up

Government grants for startups in India come with conditions that are easy to miss in a headline. Six are worth stating plainly.

1. The big SISFS cheque is repayable. The Rs 50 lakh scale-up support is convertible debentures or debt. As debt, it carries an interest rate capped at the repo rate, a tenure of up to 60 months, a moratorium of up to 12 months, and no collateral requirement.
2. The Rs 10 lakh rule. A startup that has received more than Rs 10 lakh in monetary support under another central or state government scheme is not eligible for SISFS; prize money, subsidised workspace, a founder's monthly allowance and lab access are not counted.
3. Once means once. Each form of SISFS support can be availed only once, and BIG can be availed only once.
4. Seed money cannot build facilities. SISFS money cannot be used to create facilities and must be used for the purpose it was granted for.
5. BIG's last instalment is a reimbursement. The final tranche is paid only after the final utilisation certificate and completion report, so founders need to plan cash flow for the closing stretch.
6. Reconstructed entities are excluded. DPIIT recognition - on which SISFS depends - is not available to an entity formed by splitting up or reconstructing an existing business.

FAQ

Is the Startup India Seed Fund a grant?

Partly. The SISFS support for proof of concept, prototype development and product trials - up to Rs 20 lakh - is a grant, paid in milestone-linked instalments. The larger amount, up to Rs 50 lakh for market entry and scale-up, is structured as convertible debentures or debt.

Can I get startup grants in India at the idea stage?

Yes. NIDHI PRAYAS 2.0 supports ideas through to functional prototypes, with up to Rs 20 lakh per innovator or startup through PRAYAS Centres. For biotech startups, BIRAC's BIG funds work from ideation to proof of concept, up to INR 50 lakh.

Do I need DPIIT recognition for startup grants?

For the Startup India Seed Fund Scheme, yes: it is open only to DPIIT-recognised startups incorporated not more than two years ago. NIDHI PRAYAS 2.0 and BIRAC BIG set their own eligibility rules, so check their current guidelines.

How often does BIRAC open BIG calls?

BIRAC runs a national BIG call at least twice a year, typically on 1 January and 1 July, with each call typically open for about 30 days.

Sources

1. Guidelines for Startup India Seed Fund Scheme (PDF), DPIIT / startupindia.gov.in, fetched 15 November 2026.
2. BIRAC Biotechnology Ignition Grant (BIG) scheme guidelines, Version 9, October 2025 (PDF), fetched 15 November 2026.
3. NIDHI PRAYAS 2.0 programme page, Department of Science and Technology, fetched 15 November 2026.
4. Startup India: DPIIT startup recognition page, fetched 15 November 2026.

I'm Tarun, founder of LazyFounder. This guide was drafted with AI from the official scheme documents listed above and checked against them.

We track scheme changes and grant announcements in our funding news and policy news coverage; how we research and check guides like this is set out in our editorial policy.