The scheme, launched in April 2021, aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialisation. The fund was divided into four years for providing seed funding to eligible startups through incubators across India.
DPIIT joint secretary Manmeet Nanda said the scheme has benefitted the startup community.
“A third-party impact assessment of the startup India seed fund scheme is underway. It is being done by the National Institute of Financial Management (NIFM). They will do an independent review of how the scheme has actually benefitted. They will evaluate the performance of the startups, incubators and see how this funding… led to greater opportunities and will also give us feedback on how we can improve our work,” Nanda told reporters.
About 98,000 startups have been registered with DPIIT, she told reporters here.
Further, the government has allocated Rs 611 crore to 165 incubators and of that, Rs 61 crore was released to startups under the seed fund scheme so far, Nanda added.
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“Over 1,000 startups are benefitted from the scheme so far,” she said, adding if required the department would seek more funds. “We will be able to completely utilise the Rs 945 crore fund,” she said. Startup India was launched by the government on January 16, 2016 to provide capital at various stages of the business cycle of a startup. Under this, the government has implemented Fund of Funds and Startup India Seed Fund schemes.
The seed fund scheme is benefitting startups in different sectors, including healthcare, agriculture, education, IT services and auto.
She added that over 100 women-led startups are approved under the theme in the healthcare sector alone. “There is a multiplier effect of this scheme.”