Quick Take
- Delhi’s proposed Rs 200 Cr startup VC fund targets 5,000 new ventures in the region by 2035.
- The Delhi Startup Policy 2025 is still in draft and not yet operational as of May 2026.
- Central DPIIT’s SISFS scheme currently gives NCR startups grants up to Rs 20 lakh today.
The Delhi Startup Seed Fund — a Rs 200 Cr ($24 Mn) venture capital pool proposed under Delhi’s Draft Startup Policy 2025 — remains un-notified nine months after its August 2025 announcement, leaving Delhi NCR founders still waiting for state-level seed support.
The Government of National Capital Territory of Delhi (GNCTD) released the draft policy in August 2025, inviting stakeholder feedback until September 3, 2025. As of May 2026, the policy has not been formally notified or operationalised. Founders in Delhi, Gurugram, and Noida must currently rely on central government schemes — primarily the Startup India Seed Fund Scheme (SISFS) — for early-stage government capital.
StartupFeed Insight
The delay reveals a structural gap in India’s startup policy geography. Karnataka’s ELEVATE programme has disbursed Rs 287 Cr to 1,230+ startups since 2017 — it is operational, proven, and replicable. Delhi NCR, India’s second-largest startup hub with Rs 4,490 Cr raised in Q1 2026 alone, has no equivalent state grant mechanism yet. For founders at IIT Delhi, Gurugram’s Cyber Hub, or Noida’s expressway corridor, this matters: seed-stage funding in Delhi NCR fell -38% year-on-year to $260 Mn in 2025, and state money could arrest that slide. Watch for the Delhi Startup Policy to receive formal gazette notification by Q3 2026 — at which point FITT-IIT Delhi and similar incubators are likely first-mover implementation partners. — StartupFeed Desk
What Does the Delhi Startup Seed Fund Propose?
| Benefit | Amount / Detail | Notes |
|---|---|---|
| Delhi Startup VC Fund | Rs 200 Cr (~$24 Mn) | Equity + structured-debt instruments |
| Monthly Operational Allowance | Rs 2 Lakh/month for 1 year | For day-to-day operational costs |
| Lease Rental Reimbursement | 100% up to Rs 10 Lakh/year for 3 years | For registered office/coworking space |
| Domestic Patent Filing | Rs 1 Lakh reimbursement | One-time; on filing |
| International Patent Filing | Rs 3 Lakh reimbursement | One-time; on filing |
| Exhibition Participation | Subsidised | Domestic and international events |
| Policy Target | 5,000 startups by 2035 | Across AI, fintech, healthtech, green tech, gaming |
| Status (May 2026) | Draft — not notified | Stakeholder feedback closed Sep 3, 2025 |
The most significant element is the co-investment design: the Rs 200 Cr VC fund is structured to attract private capital alongside government money, not replace it. This mirrors SIDBI’s Fund of Funds model at the central level.
About the Delhi Startup Policy 2025
The Draft Delhi Startup Policy 2025 is a proposed state-level framework by the Government of National Capital Territory of Delhi (GNCTD) to build a structured startup ecosystem in the national capital. It targets 5,000 startups by 2035 through a proposed Rs 200 Cr venture capital fund, lease and patent reimbursements, operational grants, and incubation support. Priority sectors include AI, fintech, healthcare, green tech, robotics, and gaming. The policy is managed by a proposed Startup Policy Monitoring Committee under the Commissioner of Industries.
Who Qualifies for Delhi Startup Seed Fund Support?
Under the draft framework, eligible startups must be incorporated and have their registered office in Delhi, hold DPIIT recognition, and fall within the central definition of a startup (incorporated within 10 years, turnover under Rs 100 Cr). Women-led and startups from marginalised communities are proposed to receive elevated reimbursement limits and priority mentorship. The GNCTD also plans to expand incubation capacity through new incubation centres and coworking spaces with five-year operational subsidies.
Until the Delhi policy is notified, Delhi NCR-based founders can access two central government schemes that are active today:
| Scheme | Funding Available | Stage |
|---|---|---|
| Startup India Seed Fund Scheme (SISFS) | Up to Rs 20 Lakh (grant) + Rs 50 Lakh (convertible debt) | Proof of concept, prototype, market entry |
| SIDBI Fund of Funds 2.0 | Rs 10,000 Cr corpus (deployed via AIFs) | Early to growth stage |
FITT-IIT Delhi is one of the active SISFS implementation partners in the NCR, accepting applications from DPIIT-recognised startups on a rolling basis.
How Does Delhi Compare to Other States on Startup Seed Funding?
Delhi NCR’s policy delay stands in contrast to peer states. Karnataka’s ELEVATE programme — the benchmark — has funded 1,230+ startups since 2017 with Rs 287 Cr disbursed, an average grant of Rs 22–23 lakh per startup, with zero equity dilution. Telangana offers 100% SGST reimbursement for 5 years plus 50% rent reimbursement. Maharashtra runs a Rs 500 Cr Maha-Fund targeting 25,000 entrepreneurs. Haryana, Delhi’s NCR neighbour, has proposed a Rs 2,000 Cr fund of funds — significantly larger than Delhi’s Rs 200 Cr proposal. Delhi NCR contributed Rs 4,490 Cr across 74 deals in Q1 2026, but seed-stage funding in the region declined -38% to $260 Mn in 2025.
What’s Next
Watch for the Delhi government to issue a final gazette notification on the Startup Policy before the end of Q3 2026 — that is the trigger for the Rs 200 Cr Delhi Startup Seed Fund to become operational. When it does, IIT Delhi’s FITT, Amity Innovation Incubator, and NSRCEL IIMB’s Delhi presence are likely to be early nodal partners. Will Delhi’s Rs 200 Cr seed fund be enough to compete with Karnataka’s decade-long head start?
Frequently Asked Questions
What is the Delhi Startup Seed Fund and is it active?
The Delhi Startup Seed Fund is a proposed Rs 200 Cr (~$24 Mn) venture capital fund under the Draft Delhi Startup Policy 2025. It is not yet active as of May 2026 — the policy was released in draft form in August 2025 and has not received a final gazette notification. Delhi NCR founders should currently rely on central DPIIT schemes like SISFS for government seed support.
What government seed funding can Delhi NCR startups access right now?
Delhi NCR startups with DPIIT recognition can access the Startup India Seed Fund Scheme (SISFS), which provides up to Rs 20 Lakh as a non-dilutive grant and up to Rs 50 Lakh as convertible debt for proof of concept, prototyping, and market entry. FITT-IIT Delhi is one of the active NCR-based incubators implementing SISFS. SIDBI’s Fund of Funds 2.0 (Rs 10,000 Cr corpus) is also available via registered Alternative Investment Funds.
When will the Delhi Startup Policy 2025 be notified?
No official notification date has been announced by GNCTD as of May 2026. Stakeholder consultation closed on September 3, 2025. Industry observers expect a formal gazette notification before the end of Q3 2026, though government timelines may shift. Delhi-based founders should monitor the DPIIT and Delhi Industries Department portals for updates.
Written by Dr. Mayank Raj. Published: May 4, 2026. Updated: May 4, 2026. Have a tip? Write to us at editorial@startupfeed.in.
