Expanding Seed Funds and Incubation Centres: Proposal by Startup India Head
In a significant move to bolster India's startup ecosystem, the central government is ramping up efforts to strengthen seed funding and expand incubation centres for startups. This multi-pronged approach includes financial commitments, new initiatives, and partnerships under the "Startup India" framework.
The latest efforts include the Startup India Seed Fund Scheme (SISFS), which provides financial assistance to seed-stage startups through selected incubators, aiming to catalyse early-stage innovation. As of June 30, 2025, the government has approved Rs 945 crore to 219 incubators across the country.
The Fund of Funds for Startups (FFS) is another key measure, with the government committing Rs 9,994 crore to 141 Alternative Investment Funds (AIFs). These AIFs then invest in startups, effectively leveraging venture capital at scale to nurture innovation within the ecosystem.
The Credit Guarantee Scheme for Startups (CGSS) enables startups to access collateral-free loans via eligible financial institutions, backed by guarantees from the National Credit Guarantee Trustee Company.
Partnerships for incubation and innovation are also a focus, with the government collaborating with private entities to boost incubation support. For example, the 2025 program collaboration between Startup India and Samsung provides incubation grants to young innovators, supporting grassroots entrepreneurship.
The National Startup Awards 2025 recognize high-performing startups, providing access to funding, mentorship, and expanded market opportunities. These initiatives indirectly strengthen startup growth infrastructure and visibility, including in incubation ecosystems.
The aim of these efforts is to foster the startup ecosystem across the country, with a focus on Tier 2 and Tier 3 cities to broaden the startup ecosystem beyond traditional innovation hubs.
In the state of Kerala, these initiatives are already bearing fruit. The Kerala Innovation Festival, organized by the Kerala Startup Mission (KSUM) in Kalamassery, celebrated a decade of the KSUM, which was launched with the Technology Startup Policy in 2015. The event marked the inauguration of the Kerala Innovation Festival (KIF) and featured over 100 participants from various sectors, including film, music, technology, fintech, and social entrepreneurship.
Mamatha Venkatesh, the Head of Startup India, spoke at the event and emphasized the vibrant startup ecosystem in Kerala, which has achieved 100% registration under the Startup India program. KSUM CEO Anoop Ambika announced more initiatives to support angel funding for early-stage startups in Kerala.
Venkatesh also highlighted that 48% of startups in India are founded or co-founded by women, a fact that was acknowledged by Mini Sukumaran, a member of the State Planning Board, who stressed the need to bridge the gender gap in the workforce in Kerala, despite increased enrolment of girls in higher education.
The State Planning Board has proposed several recommendations to make the gender budget more impactful, according to Sukumaran. The aim is to foster a more inclusive startup ecosystem in Kerala and across India.
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[1] Startup India. (n.d.). Startup India Seed Fund Scheme (SISFS). Retrieved from https://www.startupindia.gov.in/content/sih/en/startup-india-seed-fund-scheme-sisfs.html
[2] Startup India. (n.d.). National Startup Awards 2025. Retrieved from https://www.startupindia.gov.in/content/sih/en/national-startup-awards-2025.html
[3] Startup India. (n.d.). Fund of Funds for Startups (FFS). Retrieved from https://www.startupindia.gov.in/content/sih/en/fund-of-funds-for-startups-ffs.html
[4] Startup India. (n.d.). Partnerships for Incubation and Innovation. Retrieved from https://www.startupindia.gov.in/content/sih/en/partnerships-for-incubation-and-innovation.html
- The government's strategy for strengthening India's startup ecosystem includes the launch of the Startup India Seed Fund Scheme (SISFS), providing financial aid to early-stage startups through selected incubators, in an attempt to stimulate innovation at the seed stage.
- To leverage venture capital at scale and nurture innovation, the government has committed Rs 9,994 crore to 141 Alternative Investment Funds (AIFs) through the Fund of Funds for Startups (FFS), which then invests in startups.
- The Credit Guarantee Scheme for Startups (CGSS) enables startups to access collateral-free loans via eligible financial institutions, thanks to guarantees from the National Credit Guarantee Trustee Company.
- As part of the government's efforts for partnerships in incubation and innovation, Startup India collaborated with Samsung in 2025 to provide incubation grants to young innovators, supporting grassroots entrepreneurship.
