Scheme Overview & Objective
The NIDHI Seed Support Program (SSP) is a government-backed initiative launched by the Department of Science and Technology (DST) under the Ministry of Science & Technology. Designed to address the critical funding gap faced by early-stage tech startups, NIDHI-SSP provides seed capital of up to ₹1 Crore through DST-approved Technology Business Incubators (TBIs). This program aims to bridge the gap between prototype development and commercial manufacturing, enabling startups to scale operations, secure enterprise certifications, and attract co-investments from venture capital firms.
Eligibility Criteria & Scope
To qualify for NIDHI Seed Support Program funding in 2026, startups must meet the following eligibility criteria:
- Incorporation Status: DPIIT-recognized startups registered as a Private Limited Company in India, with less than 5 years of existence.
- Incubation Requirement: Must be incubated (physically or virtually) at a DST-supported Technology Business Incubator (TBI).
- Product Readiness: Possess a validated functional prototype or market-ready product with demonstrated customer traction.
- Equity Ownership: At least 51% of equity shares must be held by Indian resident promoters.
- Business Viability: Present a robust business model, scaling roadmap, and clear path to profitability.
- Financial Compliance: No prior defaults on institutional loans or government seed funds.
Key Financial & Growth Benefits
The NIDHI Seed Support Program offers transformative benefits for eligible startups:
- Substantial Funding: Access up to ₹1 Crore in seed capital structured as equity, soft loans, or convertible debentures.
- Founder-Friendly Terms: Enjoy low-interest rates, flexible moratoriums, and incubator-aligned equity terms.
- Accelerated Scaling: Fund critical activities like tooling, trial production, customer acquisition, and regulatory clearances.
- Institutional Backing: Leverage TBI investment committees for fast, localized funding decisions.
- VC Co-Investment Magnet: Attract 3x-5x follow-on capital from top venture capital firms.
- Infrastructure Access: Continued use of advanced lab facilities, cleanrooms, and computing clusters at host TBIs.
Application Procedure & Documents
Follow this step-by-step process to apply for NIDHI Seed Support Program funding in 2026:
Step 1: Incubation at a DST-Approved TBI
Secure physical or virtual incubation at a DST-recognized Technology Business Incubator. This is a mandatory prerequisite for NIDHI-SSP eligibility.
Step 2: Prepare Mandatory Documents
Compile the following documents for submission:
- Certificate of Incorporation, MoA/AoA, and Company PAN Card
- DPIIT Startup Recognition Certificate
- TBI Incubation Agreement
- Audited Financial Statements or CA-Certified Provisional Accounts
- Detailed Business Plan and 3-5 Year Financial Projections
- Itemized Fund Utilization Plan for ₹1 Crore
- Founders' KYC Documents (Aadhaar & PAN Cards)
- Company Bank Account Details with Cancelled Cheque
Step 3: Submit Application to Host TBI
Present your funding proposal to the Seed Investment Committee of your host TBI. Include:
- Executive Summary of Business Model
- Product Demo and Customer Validation Evidence
- Detailed Scaling Roadmap
- Proposed Fund Utilization Plan
Step 4: Investment Committee Evaluation
The TBI's Seed Investment Committee will evaluate your application based on:
- Technical Innovation and Market Potential
- Team Expertise and Execution Capability
- Financial Viability and Growth Projections
- Alignment with NIDHI-SSP Objectives
Step 5: Funding Disbursement
Upon approval, funds will be disbursed through the TBI in tranches linked to predefined milestones. Monitor compliance with reporting requirements to ensure continued funding.
Official FAQs
Q1: Can NIDHI-SSP funding be combined with other government grants?
Yes, NIDHI-SSP funding can be syndicated with other grants provided there's no overlap in fund utilization purposes.
Q2: What happens if milestones are not met?
Failure to meet agreed milestones may result in funding suspension or conversion of soft loans to higher-interest debt.
Q3: Are hardware and software startups both eligible?
Yes, both deep-tech hardware and enterprise software startups are eligible provided they meet the prototype and incubation criteria.
Q4: How are equity terms structured?
Equity terms are negotiated directly with the TBI but typically follow founder-friendly valuation caps and vesting schedules.
Q5: Can the funding be used for working capital?
Yes, up to 30% of the sanctioned amount can be allocated for strategic working capital needs as per the approved utilization plan.
For the latest updates and to initiate your application, visit the official program page: NIDHI Seed Support Program.
