Non-dilutive funding
Non-dilutive funding alongside your equity round.
Short answer
In 2026 the Startup India Seed Fund no longer takes applications (it closed on 31 May 2026). Non-dilutive options that remain include incubator-run grants such as NIDHI-PRAYAS, sector schemes, and loans or venture debt backed by the Credit Guarantee Scheme for Startups, which covers up to ₹20 Cr per borrower. We help founders combine these with equity.
Can startups apply directly to the ₹10,000 Cr Fund of Funds?
No. Fund of Funds for Startups 2.0 invests in SEBI-registered venture funds, which then invest in startups. The route to that money is raising from those funds. Details in government funding for startups in 2026.
When does venture debt make sense?
Venture debt costs far less dilution but adds a monthly repayment after the moratorium. It works best right after an equity round, not in place of one. See bridge vs extension vs venture debt.
What we do
- Map which grants, schemes and lenders fit your stage and sector.
- Plan debt for working capital so equity funds growth, not inventory.
- Check eligibility for DPIIT recognition and the Section 80-IAC certificate.
- Keep borrowing compliant: loans from friends and non-directors can breach deposit rules.
Frequently asked questions
- Is the Startup India Seed Fund Scheme still open?
- No. The last date for startup applications was 31 May 2026.
- Can my startup take a loan from friends or family?
- Only within the Companies Act deposit rules. Directors, their relatives and shareholders within limits are exempt with the right paperwork; others usually are not. See the deposit rules.
- Is the Section 80-IAC tax holiday worth applying for?
- Fewer than 2% of DPIIT startups hold the certificate. For loss-making startups the ESOP tax deferral it unlocks can matter more than the holiday. See the 80-IAC guide.
Further reading.
- Blog28 Sept 2026Read article
Government Money for Startups in 2026: What Is Actually Still Open After the Seed Fund Closed, and Why You Cannot Apply to the ₹10,000 Cr Fund of Funds
Founders still search for the Startup India Seed Fund, but applications closed on 31 May 2026. The ₹10,000 Cr Fund of Funds 2.0 is real money, yet no founder can apply to it directly. What is actually open, and how each scheme reaches you.
- Blog27 Sept 2026Read article
Bridge Round, Extension or Venture Debt? The Runway Math Investors Use to Decide Whether You Are Still Fundable
If your next milestone is 4 months away and your runway is 5, bridge. If it is 12 months away, you are not bridging, you are raising. The runway math, pricing and true cost of bridges, extensions and venture debt.
- Blog28 Sept 2026Read article
Can Your Startup Borrow From Friends, Family or Directors? The Deposit Rules That Turn a Friendly Loan Into a ₹1 Cr Penalty
A friend offers your startup ₹15 lakh as a short loan. It feels harmless and can be illegal. The Companies Act treats most money a company receives as a deposit unless an exemption fits. Which loans are safe, and how to fix them.
- Blog28 Sept 2026Read article
The Section 80-IAC Tax Holiday: Why Fewer Than 2 in 100 DPIIT Startups Actually Get It, and Whether You Should Try
Every startup India guide lists the 80-IAC tax holiday as a headline benefit. Very few startups actually get it. The numbers, why applications fail, and the less obvious benefits the certificate unlocks for ESOPs and tax losses.