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Startup funding in India: the 2026 guide for founders

Editorial

By TrustList Editorial

DPIIT recognition, Startup India funds, BIRAC and NIDHI grants, state schemes such as ELEVATE and UP Startup Mission, incubators and VC hubs: startup funding in India in 2026.

About Startup funding in India: the 2026 guide for founders

Startup funding in India: the 2026 guide for founders

Startup funding in India comes from government schemes, incubators attached to universities and state initiatives, accelerators, angel investors and venture capital funds. Much of the government support reaches founders indirectly: through an incubator that passes on a grant, or through a venture fund that has taken money from a government fund of funds. Knowing which route a scheme uses saves a lot of wasted applications.

This guide covers DPIIT startup recognition, the Startup India Seed Fund Scheme (now closed to new applications), the Startup India Fund of Funds, other central schemes such as BIRAC's Biotechnology Ignition Grant, NIDHI, the Credit Guarantee Scheme for Startups and iDEX, state schemes from Karnataka to Uttar Pradesh, incubators and accelerators including T-Hub, IIMA Ventures, NSRCEL and a dozen more from Bengaluru to Kerala, the venture capital hubs of Bengaluru, Mumbai and Delhi NCR, and how Indian tech talent firms fit into a funded startup's plans.

Every figure comes from the official page of the scheme or organisation concerned, listed under Sources at the end. Amounts, deadlines and eligibility rules change. Where a figure is likely to move, we say it was correct at the time of writing (September 2026), and you should check the official page before you apply.

TrustList does not give financial, investment, legal or tax advice. Recognition, tax exemptions and the terms of any investment depend on details this guide cannot see. Take advice from a chartered accountant, company secretary or lawyer who works with startups.

Start with DPIIT startup recognition

Recognition by the Department for Promotion of Industry and Internal Trade (DPIIT) matters for several government schemes and benefits. The Startup India Fund of Funds, for example, backs venture funds that invest in entities recognised as startups by the central government.

At the time of writing (September 2026), the Startup India portal sets out these criteria:

  • your startup is incorporated as a private limited company, or registered as a partnership firm, limited liability partnership or cooperative society;
  • turnover has been less than INR 200 crore (INR 300 crore for deep tech startups) in every previous financial year;
  • it is no more than 10 years old (20 years for deep tech startups), counted from incorporation;
  • it is working towards innovation or improvement of products, services or processes, with the potential to generate employment or create wealth.

An entity formed by splitting up or reconstructing an existing business does not count as a startup.

Some of these rules are new. In February 2026 the government raised the turnover limit from ₹100 crore to ₹200 crore, created a deep tech category with the longer age limit and higher turnover limit, and opened recognition to cooperative societies. Advice written before then may be out of date.

Apply yourself, and do not pay for it

DPIIT says it has not appointed any agency, representative or franchise for its certificate of recognition, that the application should be filed by the startup itself using its own details, and that the ministry charges no fee. Applications go through the National Single Window System (nsws.gov.in). If someone offers to arrange recognition for a fee, you do not need them.

The 80-IAC tax exemption

Once recognised, a startup can apply for an income tax exemption under section 80-IAC of the Income Tax Act. If cleared, it can take a tax holiday for three consecutive financial years out of its first ten years since incorporation. Only private limited companies and LLPs are eligible, and they must have been incorporated after 1 April 2016. Ask your accountant whether and when it is worth applying.

The Startup India Seed Fund Scheme has closed to new applications

The Startup India Seed Fund Scheme (SISFS) was notified on 21 January 2021. It did not fund startups directly. Selected incubators received the money and passed it on to startups they chose.

It offered two kinds of support, each of which a startup could receive once:

  • up to Rs 20 lakh as a grant for validating a proof of concept, developing a prototype or running product trials;
  • up to Rs 50 lakh of investment for market entry, commercialisation or scaling up, through convertible debentures, debt or debt-linked instruments. Interest was capped at the prevailing repo rate, the tenure at 60 months, and a moratorium of up to 12 months could be given. The funding was unsecured, with no guarantee required from the promoters or a third party.

The scheme is now closed to new applications. Its final extended notice set 31 May 2026 as the last date for startups to apply, and 30 June 2026 as the date by which incubators had to complete their selection. The portal does not say whether money continues to reach startups that were already selected, or whether a successor scheme is planned.

If your startup was selected, ask your incubator about disbursement. If you are starting out now, do not build your plan around SISFS. And if an agent offers to get you SISFS funding, treat that as a warning sign: at the time of writing (September 2026), the scheme was not taking applications.

The Startup India Fund of Funds: government money through VC funds

The Fund of Funds for Startups was launched in 2016 under the Startup India Action Plan to address funding gaps for startups. Under that first fund, the entire ₹10,000 crore corpus has been committed to 145 AIFs. On 13 April 2026 the government notified its successor, the Startup India Fund of Funds 2.0, with a total corpus of ₹10,000 crore for commitments to eligible Alternative Investment Funds (AIFs), spread across the 16th and 17th Finance Commission cycles.

The new fund does not invest in startups directly. It contributes to the corpus of SEBI-registered AIFs, which invest in entities recognised as startups by the central government. The Small Industries Development Bank of India (SIDBI) is the implementation agency, and a second domestic agency is to be selected.

Its priority segments are deep tech startups, early growth stage startups supported by smaller AIFs, technology-driven and innovative manufacturing startups, and sector or stage agnostic startups.

What this means for you:

  • You do not apply to the fund of funds. You raise from venture funds, some of which may have Fund of Funds money in them.
  • Recognition matters. A fund investing that money is investing in recognised startups, so get DPIIT recognition early.
  • Ask about the fund's structure. Ask whether a fund is a SEBI-registered AIF and who its investors are. It helps you understand its rules and timelines.

Grants, guarantees and state schemes

Startup India is not the only source of government money. Ministries, their agencies and state governments run schemes of their own, and most reach founders through someone else: an incubator, a lender or a fund manager. For each scheme below, the question that matters most is who you actually apply to.

Central government schemes

Scheme Run by What it offers How you get it
Biotechnology Ignition Grant (BIG) BIRAC, set up by the Department of Biotechnology INR 50 lakh grant-in-aid over 18 months to take an idea to proof of concept Online, during a call for proposals
BIRAC SEED Fund BIRAC, through BioNEST incubators A first equity investment of up to INR 30 lakh for biotech startups past proof of concept Through a SEED Fund partner incubator
BIRAC LEAP Fund BIRAC, through BioNEST incubators Equity or equity-linked funding of up to Rs 1 crore per startup, from proof of concept to pilot Through a LEAP Fund partner incubator
NIDHI-PRAYAS Department of Science and Technology Up to ₹20 lakh for early prototypes, or up to ₹40 lakh for deep tech and advanced prototypes Through a PRAYAS Centre or Advance PRAYAS Centre
NIDHI Seed Support Program Department of Science and Technology Seed support of up to INR 100 lakh per startup Through a participating incubator's own call
Credit Guarantee Scheme for Startups DPIIT, through NCGTC A guarantee on loans and venture debt to DPIIT-recognised startups, up to ₹20 crore per borrower Borrow from a bank, NBFC or AIF; the guarantee goes to the lender
iDEX Defence Innovation Organisation, Ministry of Defence Grants of up to ₹1.5 crore for challenge winners, and up to ₹25 crore for ADITI winners Answer a defence problem statement
RDI Fund ANRF, through fund managers Low-interest long-term loans, and equity for startups, for research-intensive projects; no grants Through a Second Level Fund Manager such as TDB or BIRAC

A few details decide whether these fit your company:

  • BIG is for young biotech companies with an idea still to prove. Proposals are submitted online only, and past BIG recipients cannot apply again. The 25th call closed on 30 November 2025, so watch BIRAC's calls page for the next one. BIRAC's SEED and LEAP funds come later: the SEED Fund is for startups past proof of concept, and a startup that fits within its INR 30 lakh threshold is considered for SEED rather than LEAP.
  • NIDHI-PRAYAS funds people as well as companies. An innovator without a startup can apply. A startup must have been incorporated in India for no more than five years, be at least 51% owned by Indian citizens and have had no year with turnover above ₹1 crore. Pure software, e-commerce, service and app-based projects are not eligible. In 2026 the Department of Science and Technology invited incubators to apply to become PRAYAS Centres, so check which centres are taking applications.
  • NIDHI seed support runs through incubators. It was called the NIDHI Seed Support System, and several incubators above still use that name. Each incubator announces its own calls.
  • The credit guarantee does not come to you. NCGTC covers the lender, 85% of the amount in default on loans up to Rs 10 crore and 75% above that, which makes collateral-free debt easier to get. Your startup must be DPIIT-recognised and not in default to any lender.
  • iDEX works through challenges. DISC-14 and ADITI 4.0 set 107 problem statements from the defence forces, the Indian Coast Guard and the Defence Space Agency, and the Open Challenge stays open all year. Startups, MSMEs and individual innovators can apply.
  • The RDI Fund needs technology that already works in the lab. Its fund managers back projects at Technology Readiness Level 4 or above. A loan covers at most 50% of the project cost, and equity at most 50% of a funding round.

Two schemes you may see mentioned have ended. SAMRIDH, MeitY's accelerator programme, concluded on 31 January 2026, and the Technology Development Board's call for tech startups ready to commercialise closed on 10 April 2025.

State schemes

  • ELEVATE Karnataka, run by the Karnataka Innovation and Technology Society, gives a one-time grant-in-aid of up to INR 50 lakh to turn an idea into a proof of concept, paid in two equal tranches. A startup can be based anywhere in Karnataka, must be within 10 years of incorporation, needs a team of at least two and must not have had an ELEVATE grant in the last three years. The 2026 round ran four calls, including ELEVATE Unnati for SC/ST-owned startups, under one cumulative INR 50 lakh cap. Its last date to apply was 15 July 2026.
  • Tamil Nadu Emerging Sector Seed Fund is an equity fund, not a grant. It is a SEBI-registered fund set up under a Government of Tamil Nadu policy with an anchor investment of Rs 100 crore, sponsored by TIDCO and TIDEL and managed by TNIFMC. It typically invests INR 3 to 10 crore, through equity or convertible instruments, and may consider up to Rs 1 crore for early-stage companies. It concentrates on companies in Tamil Nadu and on Tier-II and Tier-III towns.
  • SSIP 2.0, Gujarat's Student Startup and Innovation Policy, is for students, alumni and dropouts up to the age of 35, through universities and institutes in Gujarat. It pays up to INR 2.50 lakh per proof of concept or prototype, covers patent filing (INR 75,000 in India and INR 1.5 lakh abroad) and supports 500 startups with seed funding of up to INR 10 lakh. You register as a beneficiary at your institution. The policy period ends in March 2027.
  • Maharashtra State Innovation Society was created in 2017 under the state's Department of Skills, Employment, Entrepreneurship and Innovation. Under the Maharashtra Startup, Entrepreneurship and Innovation Policy 2025, Maharashtra Startup Week selects 50 startups a year for government work orders of up to Rs 25 lakh to pilot their innovations. DPIIT-recognised Maharashtra startups can reclaim the cost of granted patents, designs, trademarks and copyrights (up to 5,00,000 in India and 20,00,000 abroad), and startups can reclaim up to 5,00,000 of quality testing and certification at recognised labs. Some scheme pages on its website still show the lower amounts of the earlier policy, so confirm which apply.
  • UP Startup Mission (formerly StartInUP) runs the Uttar Pradesh Startup Policy 2026–2031. Startups registered and recognised on its portal can receive a sustenance allowance of ₹20,000 a month for up to two years, a prototype grant of up to ₹10 lakh and seed capital of up to ₹15 lakh (₹50 lakh in special cases). A startup that raises at least ₹2 crore from recognised funds can get a 50% matching grant of up to ₹5 crore. Seed and prototype grants carry a 50% bonus for women, Divyangjan, transgender, EWS and Purvanchal or Bundelkhand startups.
  • Kerala Startup Mission is described with the incubators below.

Tamil Nadu (StartupTN), Odisha, Rajasthan and Telangana also run startup schemes, but we could not confirm their current terms on official pages when this guide was updated, so check their portals directly.

Incubators and accelerators: T-Hub, IIMA Ventures, NSRCEL and others

The three incubators below are linked to business schools or to a state initiative. They offer space, mentoring and connections, and some offer grants or investment. Each runs several programmes at once, often backed by a partner with its own terms. The details below come from each organisation's own website at the time of writing (September 2026), and they change with each cohort.

T-Hub, Hyderabad

T-Hub was incorporated in 2015 as a Section 8 not-for-profit and describes a public–private partnership model. It has no single standard deal: terms depend on the programme.

  • T-Fund, a joint initiative of T-Hub and the Telangana government, provides ₹25 lakh to ₹1 crore in funding for early-stage tech startups.
  • Kotak BizLabs Season 3 at T-Hub offers selected startups grants of up to ₹30 lakh, based on programme criteria and evaluation. It takes no equity and charges no application or participation fees, and runs for six to eight months. At the time of writing (September 2026), the last date to apply is 6 October 2026.
  • T-Angel is a 100-day programme that prepares revenue-generating startups for their first investment.

Not every programme is free. T-Hub's AIC semiconductor programme, for example, charges Rs 50,000 plus GST.

IIMA Ventures, Ahmedabad

IIMA Ventures was built at IIM Ahmedabad in 2002 as an entrepreneurship centre. It was known as IIMA-CIIE until 2024, so older articles may use that name.

At seed stage, it says it typically invests $100,000 to $150,000 per venture and draws on its networks to bring in co-investors. At pre-seed, it channels catalytic capital in the form of grants and equity. Its programmes run from three to twelve months.

Its Kotak BizLabs programme offers grant funding of up to INR 30 lakh for 20 startups. At the time of writing (September 2026), applications close on 9 October 2026, and IIMA Ventures says the deadline will not be extended. Incubation space is not free, but IIMA Ventures says it is discounted compared with market rates, and some programmes are paid.

NSRCEL, Bengaluru

NSRCEL, at IIM Bangalore, runs several grant-based programmes. Three of them, as their pages describe them:

  • Launchpad, its flagship, runs for five months with no fee, and the top two incubatees are awarded 5 lakh of grant money. At the time of writing (September 2026), applications are closed, with an interest form for the next intake.
  • The Women Startup Program gives each selected venture a grant of INR 10 lakh, and NSRCEL takes no equity.
  • Impact Orbit: AgeTech Innovations offers selected ventures grants of up to Rs 12.5 lakh over eight to nine months, with no fees or equity. Applications were open at the time of writing.

Read the small print on grants. The FAQ for NSRCEL's Impact Orbit programme, for example, says that being onboarded does not guarantee a grant.

More incubators and accelerators across India

Beyond the three above, these programmes publish enough about their terms to compare. Most run more than one scheme, and several pass on government seed funds, such as the Department of Science and Technology's NIDHI Seed Support, alongside their own money.

Bengaluru

  • IKP EDEN says selected startups in its NIDHI Seed Support programme may receive up to ₹1 crore, subject to evaluation. Genesis by IKP, a 12-month programme, provides up to ₹30 lakh for 2–3% equity, held as compulsorily convertible preference shares. IKP ARK provides up to ₹1 crore per startup, released milestone by milestone, for milestone-vested equity. Its 2026 calls closed on 31 July and 15 August 2026.
  • FSID STEM Cell, the incubator of the Foundation for Science Innovation and Development at the Indian Institute of Science, lists up to ₹1 crore of seed funding through grants and equity-related funding, and rent-free space on campus. It describes itself as a domain-agnostic deep science and technology incubator and accepts applications all year. It grew out of IISc's Society for Innovation and Development (SID), so older articles may use that name.
  • C-CAMP, a Department of Biotechnology-funded initiative, supports early-stage startups through seed funding. Its Karnataka Startup Advancement Programme has offered lateral-entry seed funding of up to ₹1 crore; the most recent call we found ran from 1 to 26 September 2025. Its website blocks automated reading, so these details come from archived copies of its official pages from May and June 2026.
  • Accel Atoms is Accel's pre-seed programme for Indian and Indian-origin founders building from anywhere. Accel says it invests up to $1 million to $2 million in equity or a convertible note, that a cohort typically runs for three months, and that it accepts applications on a rolling basis.
  • Surge by Peak XV comes from Peak XV Partners, the firm that was Sequoia India & Southeast Asia until it rebranded. Surge invests from $500,000 up to $5 million in seed capital through equity, does not require exclusivity and does not take board seats at the early stage. Applications are open all year, and the next cohort starts in September 2026.

Mumbai, Pune and Ahmedabad

  • SINE, the Society for Innovation and Entrepreneurship at IIT Bombay, provides up to three years of incubation. It runs the SIDBI Seed Fund for its incubated startups and the DST NIDHI Seed Support System, each offering seed funding of up to INR 100 lakh. Its IGNITE programme with IDFC FIRST Bank gives a one-time grant of up to INR 25 lakh over six months, based on milestones; at the time of writing, the deadline is 1 October 2026.
  • Venture Center in Pune makes equity investments with a ticket size of roughly Rs 20 lakh to Rs 1 crore. Its Leap Global accelerator, supported by DST NIDHI, is a six-month, equity-free cohort programme, and its 24-week Investor Readiness Program gives top performers a chance at a reward grant of up to Rs 10 lakh.
  • iCreate in Ahmedabad, supported by the Government of Gujarat and the Government of India, runs a four-week Seed-stage Accelerator with a fee of INR 40,000. It ends in a pitch for incubation and financial support through iCreate's Pro-Fund Gateway: grants of up to Rs 10 lakh and investments of up to Rs 40 lakh. Under NIDHI Seed Support, incubated startups can receive up to ₹1 crore through equity, a soft loan or equity-linked instruments, and a venture must be able to give iCreate a stipulated stake at par when it joins.

Delhi NCR

  • FITT, the Foundation for Innovation and Technology Transfer at IIT Delhi, offers early-stage financial assistance of ₹4 lakh to ₹1 crore, depending on the availability of funds. It says it is the first-cheque investor in most of its companies, with cheques from ₹10 lakh to ₹1.5 crore. Applications are online, followed by a discussion and, for some, a pitch to its selection committee.

Kerala

  • Kerala Startup Mission is a nodal agency of the Government of Kerala for entrepreneurship and incubation. Its grants, which it says take no ownership or shares, include an Idea Grant of up to ₹3 lakh, a Productisation Grant of up to ₹7 lakh and a Scaleup Grant of up to ₹15 lakh, paid in milestone-based tranches. It also lists a Scaleup Seed Fund of up to ₹25 lakh and NIDHI seed support from ₹25 lakh to ₹1 crore. Applications are made through its website during each official call.

Social impact

  • Social Alpha offers catalytic grants and seed investments to de-risk innovations at the earliest stages. Its Namma Bengaluru Challenge '26 gives selected startups pilot grants of up to INR 25 lakh over up to six months, with access to seed capital of up to about INR 1 crore, subject to due diligence. It also hosts a NIDHI seed fund with a corpus of INR 10 crore.
  • Villgro in Chennai funds social enterprises through equity, debt, grants or a combination, under an incubation agreement with growth milestones. Its TVARAN 3.0 accelerator in Maharashtra, open in 2026, gives access to a pilot pool fund of up to ₹3 crore.

International programmes with an Indian base

  • Entrepreneurs First gives founders who join in Bangalore an INR 360,000 Talent Investment. The first 12 weeks take place in its Bangalore office. Teams funded by its investment committee move to San Francisco for the final 12 weeks, and receive $125,000 on a post-money SAFE for 8%. A further $125,000, on an uncapped MFN SAFE, is available if the team relocates and incorporates as a Delaware C-corp. That can have legal and tax consequences in India, so take advice early.
  • Google for Startups Accelerator: India is a three-month, equity-free programme for AI-first startups between seed and Series A that are based in India and building core AI applications or agentic AI solutions. Applications were closed at the time of writing.

Questions to ask any programme

  • Is the money a grant, equity, debt or a convertible instrument, and on what terms?
  • Are there fees for the programme or for space?
  • Is funding guaranteed on selection, or decided later?
  • Who funds the programme, and what conditions come with that money?
  • What happens at the end: investor introductions, a demo day, follow-on funding?

Venture capital hubs: Bengaluru, Mumbai and Delhi NCR

TrustList has separate rankings of venture capital firms in Bengaluru, Mumbai and Delhi NCR, and one for India as a whole.

A fund's office tells you where its team sits, not necessarily where it invests. Read each fund's own website for the stages, sectors and cheque sizes it states, and treat location as a practical question: where can you meet, and who can make an introduction?

The kinds of investor you will meet

  • Angel investors and angel networks are individuals, or groups of individuals, investing their own money in young companies.
  • Seed and pre-seed funds invest earlier and in smaller amounts than larger funds.
  • Series A and growth funds look for evidence that the business is working and can grow.
  • Incubator funds, such as IIMA Ventures, may invest and bring in co-investors.
  • Global funds and accelerators may require you to change where your company is incorporated, as the Entrepreneurs First example shows.

How to approach them

  • Match stage and sector first. A fund that does not invest at your stage is unlikely to make an exception for you.
  • Get an introduction. Your incubator, an angel who has backed you, or a founder in the fund's portfolio is a better route in than a cold email.
  • Have your compliance in order. Recognition, filings, a clean cap table and clear ownership of your intellectual property all come up in due diligence.
  • Understand the instrument. Know exactly what you are issuing, what rights come with it and how it converts, and have a lawyer read the term sheet.
  • If the money comes from abroad, take advice on the rules for foreign investment before you agree terms.

How Indian tech talent firms fit in

Funding and hiring are closely linked. Some startups, in India and abroad, build part of their product with an outside technology firm rather than only with employees, and investors will want to understand that arrangement.

If you are an Indian startup

An outside firm can add engineers quickly while you hire a core team. Before you sign, make sure the contract assigns to your company all the intellectual property the firm creates for you. Investors will check who owns the code. If you are spending grant money, read the grant's terms on how it can be spent and what records you must keep.

If you are a UK or US startup working with an Indian team

An Indian team can work well for a startup based abroad. But check your own funding rules first, because some limit where funded work can happen:

  • In the US, NSF's SBIR and STTR programme requires all funded work, including work by consultants and contractors, to take place in the United States.
  • In the UK, HMRC's guidance says there are restrictions on claiming R&D tax relief for some expenditure incurred overseas.

That does not rule out an Indian team. It means you should decide which work is paid for from which budget before you apply for, or claim, public money.

Finding a firm

TrustList's ranking of staff augmentation firms in India includes firms whose own website or TrustList profile shows that they offer staff augmentation, where the firm employs developers who work as part of your team. If you would rather firms came to you, you can post a request describing what you need. Requests are published on the requests board so that matching firms can respond, so keep confidential details out of the request itself and share them once an NDA is in place.

How to use TrustList's funding rankings

Use the rankings linked above to build a shortlist, then read each funder's own website before you approach it.

Be clear about what the investor rankings show. A funder is included because its own website says it invests at that stage, in that sector or from an office in that city. The rankings are built from what funders publish about themselves. They do not measure investment performance or returns, and they cannot tell you whether a funder will back your company. Sponsored placements are labelled. Our trust and methodology page explains how TrustList keeps rankings independent.

Programme listings carry facts quoted from official pages. Government schemes in India changed during 2026: SISFS closed to new applications, SAMRIDH ended, NIDHI-PRAYAS moved to a second version and Uttar Pradesh launched a new policy. Confirm the details on the official page before you apply.

Every investor and programme profile on TrustList also has a form to request an introduction. The TrustList team reads each request and passes on only those that fit the funder's stage and focus, with your pitch and contact details. It costs nothing, and a funder is not obliged to reply.

TrustList does not give financial, investment, legal or tax advice. Speak to a qualified adviser about recognition, tax exemptions and the terms of any investment.

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