New Delhi: The Minister of State for Ministry of Commerce & Industry, Jitin Prasada, shared that the Government is actively supporting the country’s startup ecosystem through three key flagship schemes under the ‘Startup India’ initiative. He made this announcement in a written reply in the Rajya Sabha on Friday.
The three schemes—Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS)—aim to back startups at different stages of their growth, spanning across categories and sectors. Each programme plays a distinct role in helping young businesses gain access to funding, mentorship, and credit support.
Boosting Investments and Seed Funding
The Fund of Funds for Startups (FFS), managed by the Small Industries Development Bank of India (SIDBI), works by providing capital to SEBI-registered Alternative Investment Funds (AIFs). These AIFs then invest in promising startups. As of 31 October 2025, AIFs supported under FFS have invested around ₹2,838.9 crore in 154 women-led startups between 2020 and 2025, marking a significant contribution towards women’s entrepreneurship.
The Startup India Seed Fund Scheme (SISFS), launched on 1 April 2021, focuses on nurturing early-stage ventures by disbursing funds through recognised incubators. As per the latest figures, incubators under SISFS have approved nearly ₹284.79 crore for 1,635 women-led startups across India.
Encouraging Collateral-free Loans
To further ease financial constraints, the Credit Guarantee Scheme for Startups (CGSS) has been offering collateral-free loans since its launch on 1 April 2023. The scheme, implemented through the National Credit Guarantee Trustee Company (NCGTC), has so far guaranteed 24 loans worth roughly ₹33.17 crore to women-led startup borrowers.
Promoting Skill Development and Mentorship
While the Government does not maintain centralised data on the success rate of startups, Shri Prasada highlighted that several nationwide initiatives are underway to offer mentorship and training opportunities for women entrepreneurs. These programmes are designed to strengthen the ecosystem by empowering women to build sustainable, scalable businesses.