Deadline - July 31, 2021
This program is carried out by the name of SAKSHAM for start-ups from Minimum Viable Product/ Scalable Stage. The funding amount for this stage is start-ups was up to 25 lacs. They are offered incubation space at IIM Kashipur -FIED. These selected startups will be guided by experienced mentors and IIM Professors, they will be able to understand business concepts/nuances, strategy and practical insights of specific industries or markets, challenges and strategies to resolve them.
After successful completion of the two months incubation program, the R-ABI will facilitate incorporation of entities for all viable business ideas. After that, these startups will be eligible for Seed Stage Funding.
To enable translation of minimum viable product (MVP) to marketable stage and scale up the product and business.
To provide a platform for faster experimentation and modification in their approaches or minimum viable product (MVP) based on innovative solutions/ processes / products/ services/ business models etc. for scaling up.
Who can Apply ?
For the people who are at the early stage or scaling stage. This includes:
Entrepreneurs who have conducted pilots or
Startups who are ready to commercial their products & services
Startups have decent early tractions.
All incubatees of an R-ABI will be eligible for this funding on the basis of consistent performance evaluated by RIC.
The recipient should be a registered legal entity in India with a minimum of two months of residency at the R-ABI.
The recipient has to be an Indian start-up as per DIPP notification. This support is not meant for Indian Subsidiaries of MNCs/foreign companies.
A startup supported once will not be eligible for applying for the subsequent round of seed support to any R-ABIs.
Expenses for the following broad activities would be supported under Pre-Stage Funding:
Development of prototype/ product
Expenses on data generation/ Data acquisition for ideas working on IT side/AI side
Fees for technology commercialization and IP issues
Manpower for day to day operations
Day to day operational expenses like electricity bill, incubation charges, etc.
Any other area/activity as deemed necessary and recommended by the RIC of R-ABIs.
As Saksham stage startups are in more advanced stage as compared to Sahas stage startups, there is NO provision of stipend for this scheme.
Selection Process of Startups for Seed Stage Funding
During the selection process, R-ABI will take into consideration any other grant-in-aid funding received by the incubatee for the same activity/product from other GOI ministries. A self-declaration from the incubatee about such funding will be mandatory.
After two months of residency of incubatees, RIC will evaluate the progress of the incubatee and based on their performance recommend them for seed stage funding to RC. RC will further evaluate and recommend the incubatees to the Nodal Division, DAC&FW for seed stage funding.
Nodal Division, DAC&FW will approve and sanction the project of the incubatees based on recommendation of RC and release the first instalment of the grant-in-aid to the respective R-ABI for further disbursement to the incubatee.
The R-ABI would execute a legal agreement with the incubatee who is selected for the seed support and this agreement should be signed before the release of the first instalment of seed fund to the incubatee. The terms of agreement with the incubates start up should be framed by the R-ABI linking with the progress milestones, monitoring norms etc. Subsequent disbursement schedules should be linked to the achievement of milestones by the incubatee.
Pattern of Funding Support and Release of Funds
A maximum of 20 startups per R-ABI will be supported under this scheme. Each selected startup will be provided a maximum limit of Rs. 25 Lakh as grant-in-aid under the scheme. (start-ups already receiving grants /financial support from any other source will not be eligible under RKVY-RAFTAAR)
For ensuring incubatee/ private participation in the programme, a minimum of 15 percent on proportionate basis of the project cost will be borne by the incubatee. The remaining 85 percent of the project cost on proportionate basis upto a maximum of INR 25 lakhs will be borne under RKVY-RAFTAAR scheme which will be released in three instalments as mentioned below:
The first instalment of 40 % of the sanctioned project for seed support will be released after signing of the agreement between the incubator/ R-ABI and the incubatee.
The second instalment of 40% will be released to the incubatee after recommendation of RIC based on their performance and achievement of milestones as well as after utilization of 80% of previously released amount and receipt of provisional UC of 80% of already released funds.
The third instalment of 20% will be released to incubatee by the Nodal Division through R-ABIs after recommendation of RIC based on their performance and achievement of milestones as well as after utilization of 80% of previous released amount and receipt of provisional UC of 80% of already released funds.
After two months, market access will be facilitated by the R-ABI.
The R-ABI will also organize a Demo Day for Investor pitch to showcase the matured product of the incubatee to investors for further facilitation of funding.