Article by Partner-SAAply
Are you an Indian startup founder or innovator with a brilliant idea but no funds to prototype or scale? You’re not alone. Every year, thousands of early-stage founders face the “valley of death” — that tough stretch where you need funding to prove your concept but don’t yet qualify for VC money.
The Indian government wants to change that.
Enter the NIDHI initiative from the Department of Science and Technology (DST), which includes two powerful programs:
- NIDHI-PRAYAS: To help you build your first prototype
- NIDHI Seed Support System (SSS): To take your prototype to market
Here’s your ready guide to what they offer, who’s eligible, and how to apply — plus expert tips to stand out.
What Is NIDHI-PRAYAS?
NIDHI-PRAYAS (Promoting and Accelerating Young and Aspiring Innovators and Startups) is a non-equity grant that helps innovators turn tech-based ideas into working physical prototypes. It’s designed to help startups in the idea-to-prototype phase.
Key Features:
- Grant up to ₹10 lakhs (non-equity)
- Access to labs, prototyping tools, and technical infrastructure
- Hands-on mentorship from industry experts
- Co-working space and startup support services
- Support duration: up to 18 months
Who Can Apply:
- Indian citizens aged 18 or older
- Individuals or startups (less than 7 years old)
- Company must have turnover under ₹25 lakhs
- Must own or legally control the IP
- Must focus on building a physical product (not software-only)
Conditions Apply:
- Startup must not have received funding from any other government agency.
- Annual turnover must be under INR 25 Lakhs.
- If the applicant is a student or employed, a No Objection Certificate (NOC) from the institution or employer is required.
Permitted Use of Funds:
- Prototyping
- Technical consultancy
- Intellectual Property (IP)-related expenses, such as patent filing
What Is NIDHI Seed Support System (NIDHI-SSS)?
Once you have a working prototype or proof-of-concept (PoC), NIDHI-SSS is your next step. It helps you refine your product, validate the market, and launch commercially — often bridging the funding gap before VC or angel investment.
Key Features:
- Funding up to ₹50 lakhs
- Flexible support for:
- Product improvement
- Market validation
- Customer acquisition
- Pilot programs
- Testing scalable business models
- Typically provided as equity, convertible debentures, or soft loans
- Duration: 12–24 months, based on milestones
Who Can Apply:
- Registered startup (Pvt Ltd, LLP, OPC) in India
- Should have a working prototype or PoC
- Must be incubated at a DST-supported TBI
- At least 51% Indian founder equity
- Preferably under 3 years old (flexible case-by-case)
- DPIIT recognition preferred but not mandatory
Conditions Apply:
- Startup should be incubated with the incubator where you apply.
- Virtual incubation is allowed.
- Must be an IP-rich venture with a clear innovation component.
- The entrepreneur should be willing to dilute equity in exchange for seed support.
- The funding required must be less than INR 50 Lakhs.
Quick Decision Guide
| You are… | Apply for… |
| Still at the idea stage, need to build a physical prototype | ✅ NIDHI-PRAYAS |
| Have a prototype, ready to test and launch in market | ✅ NIDHI-SSS |
Pro Tips to Strengthen Your Application
For NIDHI-PRAYAS
- ✅ Submit early design sketches, diagrams, or market need analysis
- ✅ Clearly define the problem you’re solving and how your product helps
- ✅ Emphasize hardware/physical innovation, not software-only
- ✅ Show evidence of early user interest or validation
- ✅ File or prepare for IP protection before applying
For NIDHI-SSS
- ✅ Prepare a clear fund utilization plan, linked to business milestones
- ✅ Highlight early traction: PoC demos, pilot runs, LOIs, user feedback
- ✅ Show a roadmap for commercialization and scaling
- ✅ Be ready to discuss equity or financial structuring with the incubator
- NIDHI PRAYAS at SCTIMST TIMed-Deadline: July 25, 2025
- NIDHI-Seed Support Program (Special Textiles Focus) – Deadline: July 31, 2025
- NIDHI Seed Support Program-ACIC-VGU – Deadline: August 21, 2025
See the database of open NIDHI calls for links.
Why This Matters
Programs like NIDHI-PRAYAS and NIDHI-SSS are rare opportunities to access equity-free or soft-funding support at a stage where most VCs won’t bet on you.
Whether you’re building a prototype — this is your launchpad.
If you’re ready to take your startup from sketch to scale, Apply Now.
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