Bhamashah Startup Promotion Fund, Rajasthan

What is the Bhamashah Startup Promotion Fund?

Bhamashah Startup Promotion Fund is the umbrella name used in Rajasthan for the state's pool of startup money, disbursed by the Department of Information Technology and Communication (DoIT&C) through the iStart Rajasthan platform. The name comes from Bhamashah, the sixteenth-century merchant who funded Maharana Pratap's campaign from his own treasury, and it carries through to the state's startup hub, Bhamashah Techno Hub in Malviya Nagar, Jaipur.

In practice the fund is not one cheque with one form. It is a staged ladder of instruments defined by Rajasthan Startup Policy 2022 and by the earlier policy provisions that DoIT&C continues to operate. A startup does not "apply to the fund"; it registers on iStart and then applies to whichever rung of the ladder matches its stage. Understanding the ladder is therefore the whole practical task, and this page sets it out.

One caveat stated plainly. Figures for a headline corpus of the fund circulate in secondary reporting, and this guide does not repeat them, because the official iStart pages set out per-instrument entitlements rather than a published corpus. The amounts below are the ones the state itself publishes.

What does each rung of the ladder pay?

Pre-seed stage; Ideation Grant

All pre-seed stage startups registered under the iStart programme are eligible for a grant of INR 2,40,000 where the concept meets the Evaluation Committee's criteria. Startups with more than 50 percent women founders receive an additional INR 60,000, taking the maximum to Rs 3,00,000.

Seed stage: Viability Grant

Registered seed stage startups qualify. The iStart page states that eligibility and the provision for this incentive will be notified by the government from time to time, so no fixed amount is published.

Growth stage; Scale Up Fund

Financial support to growth stage startups of up to a maximum of 50 percent of the total amount raised by the startup, provided as debt convertible to grant. Final terms are to be notified by the government.

Growth stage; Startup Equity Fund

The government has established an Alternative Investment Fund that matches capital raised by eligible growth stage startups, capped at INR 5 crore per startup. A startup may choose either the Startup Equity Fund or the Scale Up Fund: not both.

Idea or prototype stage — sustenance allowance and seed funding

A grant of Rs 10,000 per month for one year as sustenance allowance to eligible startups at idea or prototype stage, after approval by the Committee and the Nodal Institution. Seed funding is separately provided at this stage so a team can mature its product or service and prepare for a subsequent round of support.

MVP stage: marketing and commercialisation assistance

Up to Rs 10 lakh at Minimum Viable Product stage, provided after case-by-case review by the evaluation committee, in the form of loan or convertible equity. The department sets two alternative routes: the startup has secured at least 25 percent funding from a known and registered angel investor, venture fund or reputed incubator, in which case the amount may be disbursed wholly or partly as grant or as soft loan or equity on the same terms; or the assistance goes as matching assistance to reputed incubators established by institutions such as IIMs, IITs and NITs, to fund startups as part of an accelerator programme.

Soft loan, Techno Fund

The state's loan instrument, at 5 percent interest on a reducing balance for a maximum of three years, with no securitisation, repayment beginning six months after disbursement in six monthly instalments, allocated by Q-Rate ranking with earmarking for potential and emerging, women and green startups.

Who is eligible, and who is not eligible?

Rajasthan applies the DPIIT startup definition across all these instruments.

You can apply if:

• Your entity is a private limited company under the Companies Act 2013, a registered partnership firm under section 59 of the Partnership Act 1932, or an LLP under the LLP Act 2008.
• The entity is within ten years of incorporation or registration.
• Turnover has not exceeded Rs 100 crore in any financial year since incorporation.
• The entity is working towards innovation, development or improvement of products, processes or services, or is a scalable business model with high potential of employment generation or wealth creation.
• The startup is registered on the iStart Rajasthan platform.
• The startup is at the stage that matches the instrument, pre-seed for the Ideation Grant, seed for the Viability Grant, MVP for marketing assistance, growth for the Scale Up or Equity Fund.

You cannot apply, or are not eligible, if:

• The entity was formed by splitting up or reconstructing an existing business. The department states that such an entity shall not be considered a startup.
• You are an individual with an idea and no registered entity. Funding goes to an entity's account.
• The entity is over ten years old or has crossed Rs 100 crore turnover in any year.
• You want both the Scale Up Fund and the Startup Equity Fund. The policy requires a choice between them.
• You are applying for marketing assistance without the 25 percent angel or venture funding and are not an incubator route case.
• The Evaluation Committee does not clear the concept. Registration on iStart creates eligibility to be considered, not an entitlement to money.

How to apply for Rajasthan startup funding

1. Register the startup on iStart Rajasthan at istart.rajasthan.gov.in. This is the single gate to every instrument described above.
2. Complete the entity profile with the certificate of incorporation or registration, PAN, founder details, shareholding and financials. Record women founders' shareholding here if you intend to claim the women-led additions.
3. Choose the instrument that matches your stage and apply for it on the platform, attaching the pitch deck or business plan, and where relevant the evidence of capital raised or the proof of angel or venture funding.
4. Complete and correct the application when gaps are flagged. The department's stated procedure is that subject to completion and correction of the application, the startup is invited to present.
5. Present the idea or project before the Evaluation Committee.
6. Subject to the committee's approval, the nodal institute approves or rejects the application and disburses the funds in the stipulated time.

What non-cash support comes with iStart?

The programme's own account of its infrastructure matters to an early team as much as the cash:

• iStart Nest, the Government of Rajasthan's incubation centre, described by the department as the only centralised incubator in the country providing free incubation to emerging startups, with deep mentor engagement, rapid iteration cycles and fundraising preparation.
• Incubation centres in Jaipur, Kota, Udaipur and Bharatpur, through which iStart records having supported more than 650 startups.
• Techno Hub, which the state describes as its biggest and most advanced startup hub, offering free space, connectivity, easier funding, mentorship and exposure to investors.
• A virtual incubation programme, described as one of the largest capacity building and ecosystem enabling programmes in the state, open to startups from early to scaling stage.

Which startups are prioritised?

Two groups carry explicit earmarking in the fund's proposed allocation, alongside the general pool of potential and emerging startups:

• Women startups. A women-led startup is one with a woman as Founder, Co-Founder or CXO. The wider Government of India definition the department cites requires a minimum 51 percent financial interest in the capital held by women and at least 51 percent of the enterprise's employment given to women. On the Ideation Grant, more than 50 percent women founders brings the additional Rs 60,000.
• Green startups, working on environmental and clean solutions.

Selection is otherwise sector agnostic, with the department naming a focus on social and clean-tech, mobile and information technology, Internet of Things, "IT for X" in garments and crafts, mining and SME manufacturing and services, and disruptive ideas or technologies in any sector.

Common reasons a funding application does not succeed

• iStart registration incomplete, so the file never reaches the committee.
• Instrument mismatched to stage. A growth stage company applying for the Ideation Grant, or a pre-revenue team applying for the Scale Up Fund.
• No evidence of capital raised, where the instrument is calculated as a percentage of what was raised.
• Marketing assistance sought without the 25 percent angel or venture funding.
• Entity outside the startup definition on age, turnover or origin.
• Weak demonstration of innovation or scalability before the Evaluation Committee.

Help and contact

• iStart help desk: 0141-2929831
• Funding support: 0141-2922286
• General iStart line: 0141-2922373
• Email: startups.doit@rajasthan.gov.in
• Platform: istart.rajasthan.gov.in
• Bhamashah Techno Hub: Sansthan Path, Jhalana Gram, Malviya Nagar, Jaipur 302017

Registration and application are free. No agent or consultant is needed, and a demand for payment to secure an approval should be reported to the help desk.