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Govt Strengthens Startup India Push with New Funding & Credit Schemes

startup funding

Government rolls out expanded support under Startup India — FFS, SISFS & CGSS fuel capital, seed funding and collateral-free credit for women-led startups nationwide.

The Government of India has reaffirmed its commitment to nurturing entrepreneurship by detailing progress across three key startup support schemes under the Startup India initiative — the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). The announcement was made in a written reply by Minister of State for Commerce & Industry, Shri Jitin Prasada, in the Rajya Sabha on 12 December 2025. Press Information Bureau


Strategic Capital Infusion via FFS

The FFS programme, operationalised by SIDBI, acts as a catalytic funding engine, channeling ₹2,838.9 crore into 154 women-led startups through SEBI-registered AIFs as of late October 2025. This financial ecosystem push plays a critical role in energising investor interest and building sustainable growth trajectories for startups.


Seed Funding Boost for Emerging Ventures

Under the SISFS, startups at the earliest stages receive much-needed capital support through incubators. To date, 1,635 women-led ventures have been approved for ₹284.79 crore in seed funding. This scheme shines as a cornerstone of early entrepreneurial support, paving the way for prototypes, product validation and market entry.


Collateral-Free Loans Through CGSS

Launched in April 2023, the CGSS enables startups to access credit without pledging collateral. Through this scheme, 24 loans totalling ₹33.17 crore were guaranteed to women-led startups by eligible financial institutions, marking progress in financial inclusion for entrepreneurial ventures. Press Information Bureau


Inclusivity & Entrepreneurial Development

A distinctive feature across all schemes is the emphasis on supporting women entrepreneurs, accompanied by dedicated mentorship, capacity development and outreach programmes such as WING, ASCEND, Women for Startups workshops, and digital learning channels.


Nationwide Impact & Conclusion

With pan-India implementation and targeted support for underrepresented founders, these initiatives reflect the Government’s broader strategy to strengthen innovation, startup resilience and equitable economic growth. As figures continue to rise, stakeholders and founders alike are poised to benefit from expanded opportunities and strengthened institutional backing.

NewslyTrend Edit Team

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