DST-NIDHI Seed Support 2025

DST-NIDHI Seed Support Form

Description

SINE with the support from Department of Science & Technology (DST) has opened the call for application under NIDHI-Seed Support System (NIDHI-SSS). This program aims at providing financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization etc

The sole objective of the NIDHI-SSS is to ensure timely availability of the seed support to the deserving incubatee start-ups within an incubator, thereby enabling them to take their venture to next level and facilitate towards their success in the market place. The scheme also enables the STEP/TBI to widen their pipeline of start-ups and also share the success of their start-ups which would also result in ensuring the long term operational sustainability of the STEP/TBI.

For more details : https://sineiitb.org/sinemaster/resources/images/resources/15/Guidelines_for_the_NIDHI_Seed_Support.pdf

Eligibility

The applicant must be

An Indian registered entity as a private limited company, with a minimum of 51% shareholding by Indian Promoters.

The startup should be registered with DPIIT or obtain DPIIT certificate to avail the funding

The Start-up should be incorporated as a private limited company

The applicant startup should have developed clarity on Unique Selling Proposition (USP) through customer validation and value proposition for its targeted customers.

An entity formed by splitting up or reconstruction of an existing business shall not be considered a "Start-up"

Support is not meant for-Indian subsidiaries of MNCs/foreign companies.

Start-up cannot receive NIDHI Seed funding more than once from any source and from any of the incubators

Funding support should not be only for capital expenditure

The application should mandatorily include a declaration by applying start-up that they have not received any NIDHI-seed support from any other DST supported incubator.

Overseas Citizens of India-OCI and Persons of Indian Origin-PIO are considered as Indian citizens for the purpose of this scheme

Usage of Funds

The funds can be used for the following:

Product development: Procurement of equipment and tools, prototyping, testing and trials, raw material and consumables, fabrication, outsourcing of technical supports and services for the company’s product.

Manpower: Salaries for team members can be apportioned.

Marketing: For test marketing, sales, promotions of companies’ products and services including travelling only for business and product promotion.

Mentoring: Seeking professional mentoring assistance.

Professional services: For legal, accountancy, IP, marketing, strategy, regulatory compliance, certification, or any other justifiable professional services.

Contingencies/Overrun:This shall not exceed 10% of the seed support.

For any other business operations purpose which needs to be justified in the application itself and as recommended/ approved by the Investment committee from time to time.

Selection Process

Applications for the seed fund will be subject to two level of review process:

• Internal review by experts
• Selected team will be invited to present before the Investment Committee (IC)

Broad criteria for review criteria will include (but not limited to):

Technology & Innovation

Team with relevant skill sets, and execution capability

Clear value proposition and competitive advantage

Customer segment, Size of market or potential for significant impact

Intellectual property

Roadmap with clearly defined milestones especially with regards to product development and visibility for revenue generation.

Regulatory/certification/policy risks

Broad terms for seed funding Broad terms for seed funding:

Disbursement of the seed funding will be in tranches, linked to pre-defined milestones. The funds will be released after execution of the Seed Support Agreement.

Investment mode: Equity ownership/ Convertible Preference Shares in the form of CCPS/OCPS in a private limited company.

BoD representation: Board Nominee Director and/or observer of SINE and/or of the concerned funding agency, if so stipulated.

Monitoring: Investee companies will submit six-monthly progress report and Annual financials/MIS, or as per requirement of the funding department.

Incubation Support: If the investment is approved, non-incubated investee companies will be required to incubate(physical/virtual) with SINE in order to avail the funding.

Incubation General Terms and Support

Disclaimer:

Shortlisted applicants will be communicated individually for subsequent steps. The selection decision taken by the Investment commitee will be final.

Please note: SINE reserves the right to revise the guidelines/approach.

In case of inquires Kindly write to us at [email protected]