If you’ve ever dreamed of launching your startup in India, you probably already know—it takes a lot more than just a great idea. You need execution, a strong team, and perhaps most importantly, funding. Whether you’re trying to build a food delivery app in Jaipur or a green energy venture in Kerala, sooner or later, you’ll find yourself wondering: how do I actually get money to do this?
The good news? India’s startup ecosystem is booming. The bad? It’s also pretty crowded. Startups are everywhere—college dorm rooms, Tier 2 towns, even inside WhatsApp groups! And yet, funding remains elusive for many. This guide will walk you through the maze: where to start, what investors want, and how to build your funding path from the ground up.
But first, let’s break down the basics.
Understanding Startup Funding in India
What is Startup Funding?
Startup funding is, simply put, the capital you raise to start and grow your business. This money can come from a wide range of sources—angel investors, venture capitalists (VCs), banks, even crowdfunding platforms. For early-stage founders, especially in India, figuring out where to begin is often the hardest part.
It’s not just about getting money. Funding often brings in strategic support, industry connections, and mentorship that can shape your company’s future. Think of it like planting a seed. Sure, water matters. But the right sunlight? Even better.
There are typically several stages of funding:
- Bootstrapping (self-funded)
- Pre-seed and Seed funding
- Angel investors
- Series A, B, C…
Each round gets you closer to scale—but also, comes with higher expectations.
Why Funding is Crucial for Startup Growth
So why is everyone chasing funding like it’s the last samosa at a startup mixer?
Well, for one—money helps you move faster. With funding, you can:
- Hire a core team
- Build MVPs faster
- Run ads and reach customers
- Stay alive longer
But that’s not all. Funding also validates your idea. If someone is willing to invest ₹25 lakhs in your vision, it means your idea might just be worth something.
That said, not every startup needs funding. Some profitable startups never raise a rupee and still grow successfully (shout out to Zoho and Zerodha, btw). It really depends on the kind of business you’re building. But for most new-age digital-first startups in India—funding is the fuel.
Startup Ecosystem in India in 2025
India is no longer just an emerging startup market. It’s a powerhouse.
In 2025, India is home to:
- Over 110,000 registered startups
- 110+ unicorns
- Dozens of government-backed funding schemes
- And a growing pool of VCs, micro-VCs, and angel networks
Cities like Bangalore, Hyderabad, Pune, and Ahmedabad are buzzing with innovation hubs, co-working spaces, and pitch events. But the real surprise? Startup action is picking up in places like Bhubaneswar, Surat and Lucknow too.
The Indian government has also taken strong steps to nurture entrepreneurship. Through initiatives like Startup India, Stand-up India, and the SIDBI fund-of-funds, access to early-stage capital is improving—but not always fast enough. The paperwork can be—honestly—a pain.
Still, if you’re ready to hustle (and handle a few frustrating government portals), there’s plenty of funding out there. You just need to know where—and how—to look.
Step-by-Step Process: How to Get Funding for a Startup in India
So you’ve got an idea, maybe a prototype, maybe not. You’re ready to bring it to the world. Now what? Funding your startup in India isn’t a one-size-fits-all process. There’s no “click here to get ₹50 lakhs” button (although—honestly—someone should build that).
Here’s a breakdown of how to get started, one step at a time:
Step 1 – Build a Strong Business Plan
Before you even think about raising money, ask yourself: Would I invest in this idea if it wasn’t mine?
A solid business plan shows that you’ve done your homework. It should clearly explain:
- What problem you’re solving
- Who your target audience is
- How you make money (your business model)
- Competitor analysis
- Revenue projections (don’t just make them up — investors can smell fluff)
Remember, investors aren’t just investing in your idea. They’re investing in you, your thinking, and your ability to adapt. So don’t be vague or generic—be sharp, be real.
Step 2 – Identify the Right Type of Funding
Not all money is equal. And not all funding is right for every stage.
Here are your main options:
- Bootstrapping: Self-fund, friends/family (yes, chachu might help)
- Angel investors: Wealthy individuals investing in early-stage ideas
- Venture Capital (VC): Bigger bets for fast-scaling startups
- Debt financing: Bank loans, NBFCs, or government loans
Start small. Don’t chase VCs if you haven’t even built a product yet. Instead, look for seed capital or angel rounds.
Step 3 – Prepare a Powerful Pitch Deck
Your pitch deck is your startup’s first impression. It’s kinda like a dating profile—but for money.
Your pitch should include:
- Problem & solution
- Product demo (if possible)
- Market size
- Business/revenue model
- Go-to-market strategy
- Team
- Ask (how much funding you want, and how you’ll use it)
Keep it clear. Keep it short (10–12 slides max). And for heaven’s sake—don’t use Comic Sans.
Step 4 – Apply and Follow Up Strategically
Once you start applying, follow up. But politely.
If an investor says no, ask for feedback. If they ghost you (happens a lot, sadly), move on. Keep refining your pitch with each rejection.
And pro tip? Document everything. From conversations to email replies—it’ll help you improve and look more professional.
Government Schemes for Startup Funding in India
The Indian government actually wants you to start a company. Seriously. There’s a bunch of schemes designed to help early-stage startups—if you know where to look.
Top Government Schemes You Should Know
- Startup India Seed Fund Scheme (SISFS)
Offers up to ₹50 lakhs in funding for eligible startups - MUDRA Loans
Loans under ₹10 lakhs for small businesses - Stand-Up India Scheme
Meant for SC/ST and women entrepreneurs - SIDBI Fund of Funds
Indirectly funds VCs that then invest in startups
How to Apply for Government Startup Funds
Here’s where things get, uh, bureaucratic.
You’ll need:
- Startup India DPIIT Recognition
- Business PAN, GST, incorporation certificate
- Financial projections
- Patent/trademark documents if applicable
The Startup India portal (startupindia.gov.in) is the main gateway for these schemes. But warning—it’s not the most user-friendly thing ever. Still, it’s worth applying, especially if you’re in early stages.
And hey, don’t forget state-level grants! States like Karnataka, Gujarat, and Telangana have amazing programs.
Alternative Ways to Fund Your Startup in India
Not every great startup starts with a VC cheque. Infact, some of the most successful Indian entrepreneurs bootstrapped or explored creative routes to raise funds before they ever stepped into a boardroom full of suits.
If you’re still figuring out how to get funding for startup ideas without giving away tons of equity too soon, here are some alternatives worth exploring:
Crowdfunding Platforms
Crowdfunding is more than just a buzzword—it’s real people backing your idea.
In India, platforms like Ketto, FuelADream, and Wishberry allow you to raise small amounts from a large number of supporters. It works especially well if your startup has a social angle or solves a very specific community problem.
Downside? It’s a lot of work. You’ll need to build a campaign, promote it, and often still fall short if your network isn’t strong.
Incubators & Accelerators
These are like startup schools, but with money and mentors thrown in.
Top names in India include:
- CIIE (IIM Ahmedabad)
- T-Hub (Telangana)
- NSRCEL (IIM Bangalore)
- NASSCOM 10,000 Startups
They often offer early-stage capital (₹5–50 lakhs), office space, and access to investors—plus visibility.
But they’re competitive. Make sure your pitch is sharp and your traction is real (or at least promising).
Corporate Venture Capital & CSR Funds
Big companies are investing in startups now. Why? Because innovation is hard for them to do in-house.
Tata, Reliance, Mahindra, and Infosys have all backed early-stage startups. Some also fund startups through CSR (Corporate Social Responsibility) grants—especially those in sustainability, health, and education.
It’s a less obvious route. But one that’s definitely growing.
Startup Competitions and Innovation Grants
There’s literally money lying on the table—you just have to go win it.
Keep an eye out for:
- Startup India Grand Challenges
- National Startup Awards
- Atal Innovation Mission
- University startup contests
Even if you don’t win, participating can get you visibility and mentorship (sometimes even pivot ideas that you never thought about!).
Common Mistakes to Avoid While Raising Funds
Founders in India—especially first-timers—often hit the same walls. Avoid these traps:
- Chasing VC money too early: Build, test, validate first
- Unrealistic valuation expectations: No, your idea isn’t worth ₹10 crore yet
- Ignoring legal setup: Investors hate messy cap tables and unclear IP rights
- Weak communication: A great idea badly pitched is just noise
And please don’t lie in your pitch deck. Investors can Google too.
Modipreneur: Your Startup’s Gateway to Funding
This is where Modipreneur steps in—to make the funding journey actually make sense.
Whether you’re just starting out or actively raising, Modipreneur offers:
Investor Matchmaking
We help connect founders with the right investors, not just any investor. That means folks who understand your sector, stage, and style.
Pitch Support & Mentorship
Our platform doesn’t just list you—it supports you. From perfecting your deck to mock pitches and narrative coaching, we help polish what you already have.
Fast-Track Access to Schemes
Struggling with government portals? We guide you through Startup India, DPIIT, and funding scheme applications—step by painful step.
FAQs: Real Questions Founders Ask Google
How do I get funding for my startup in India?
Start by validating your idea, building a pitch deck, and choosing the right funding type. Explore angel investors, seed funding, and government grants.
Can students get startup funding in India?
Yes! Several university programs, innovation grants (like from AICTE, DST), and state startup cells support student-led ventures.
What documents are needed to apply for startup funding?
Usually: business plan, incorporation certificate, financials (or projections), DPIIT certificate (if needed), GST details, and founder IDs.
Is Startup India giving money to startups?
Yes, through schemes like Startup India Seed Fund, but it’s competitive and requires formal registration, pitch, and vetting.
Can I get funding without a product?
It’s hard—but not impossible. You’ll need a strong prototype, market validation, or early traction (like waitlists, user signups, etc.).
Final Thoughts: From Idea to Investment
India is bursting with startup talent. But talent alone isn’t enough. You need clarity, strategy, and resilience.
Getting funding is hard. But not getting started? That’s worse.
Whether you’re building the next fintech giant from Delhi or a social impact app in Assam—your funding journey begins with knowledge. Platforms like Modipreneur are here to make that path smoother, less frustrating, and way more empowering.
So—don’t wait for the “perfect” time.
Start small, pitch honestly, and build boldly.
The funding will follow.