Economic Survey: Startup India Seed Fund Scheme pumps in Rs 227 crore in over 1,200 women-led companies

Launched on January 12, 2016 by the Department for Promotion of Industry and Internal Trade (DPIIT) with a corpus of Rs 945 crore, SISFS is one of three key initiatives launched by the Indian government to fund the country’s startups.

The Startup India Seed Fund Scheme (SISFS) has approved Rs 227.12 crore in funding for as many as 1,278 women-led startups since inception in April 2021, according to the government’s pre-budget Economic Survey released on January 31.

According to the survey, women have been key beneficiaries of various government initiatives designed to foster entrepreneurship in India.

Launched on January 12, 2016 by the Department for Promotion of Industry and Internal Trade (DPIIT) with a corpus of Rs 945 crore, SISFS is one of three key initiatives launched by the Indian government to fund the country’s startups.

The government has also introduced the Credit Guarantee Scheme for Startups (CGSS) with a fixed corpus for providing guarantees to loans extended to DPIIT-recognised startups by banks, non-banking financial companies (NBFCs), and Sebi-registered venture debt funds.

According to the survey, women entrepreneurs receive 90 percent guarantees (vs. 75 percent for others) and reduced fees under the CGSS. Furthermore, of 97.68 lakh guarantees approved under the scheme, 22 per cent are for women – totalling Rs 24.6 crore in loans.

As of 31 October 2024, a total of 73,151 startups with at least one woman director have been recognised under the Startup India Initiative. This represents nearly half of the 1,52,139 start-ups supported by the government, the survey showed.

The government also operates the Fund of Funds for Startups (FFS) scheme, of which 10 percent is reserved for women.

Launched by the Small Industries Development Bank of India (SIDBI) in January 2016, the FFS has so far deployed over Rs 11,000 crore in 144 venture capital and venture debt firms, including Stellaris Venture Partners, Sanjay Nayar’s Sorin Investments, Fireside Ventures, Chiratae Ventures, Trifecta Capital and Alteria Capital, among others.

“These programmes offer women entrepreneurs financial support, training, and mentorship, empowering them to start and scale their businesses,” the survey stated.

In fact, as much as Rs 3,107.11 crore has been invested in 149 women-led startups through Alternative Investment Funds (AIFs).

The survey also highlighted state-led initiatives that are enabling women entrepreneurship. It outlined Telangana’s incubation program – the Women Entrepreneurs Hub (WE Hub) – that is giving women entrepreneurs access to “technical, financial, governmental, and policy support required to start up, scale up, sustain, and accelerate with global market access.”

The program has raised Rs 177 crore in funding, while 6376 start-ups and SMEs have been incubated. It has also engaged around 7,828 entrepreneurs and has launched 87 start-up programmes, the survey showed.