Madhya Pradesh Startup Policy 2022: Investment-Linked Assistance
Department of MSME, Government of Madhya Pradesh · Central government
A government top-up funds SEBI/RBI-recognised investments up to ₹15 Lakh per instance, with a bonus for women-led ventures.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹15,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Madhya Pradesh Startup Policy 2022 includes an Investment-Linked Assistance programme, which is managed by the Department of MSME, Government of Madhya Pradesh. The scheme provides financial support to emerging ventures to strengthen the state’s startup ecosystem. The department acknowledges the contribution of startups to innovation and economic growth, and extends its backing to micro, small, and medium enterprises (MSMEs) throughout the region. This policy is consistent with the state’s broader economic objectives and seeks to establish Madhya Pradesh as a centre for startup activity.
Under this framework, eligible startups may receive a government top-up equal to 15% of the capital raised from a SEBI (Securities and Exchange Board of India) or RBI (Reserve Bank of India) recognised institutional investor or angel network. The assistance is limited to ₹15,00,000 per funding round. Support is available across four distinct funding stages, with cumulative assistance potentially reaching ₹60,00,000.
The top-up funds can be applied to routine operational and growth-related expenditures, supplementing the capital obtained from private investors. This allows startups to direct resources towards product development, market entry, and hiring. The policy also incorporates a specific provision for women-led enterprises, which receive an additional 20% bonus on the standard assistance for each funding instance. This measure is intended to encourage and integrate women entrepreneurs into the state’s startup environment.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, Partnership firm
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Required
- GST registration
- Not specified
- Where the business may be based
- Madhya Pradesh
- DPIIT Recognition: The applicant startup must hold valid recognition from the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India. - Madhya Pradesh Registration and Operation: The startup must be officially registered and actively operating its core business activities within Madhya Pradesh. - Secured Institutional Investment: The startup must have secured and received investment from a SEBI or RBI-registered institutional investor, including Alternate Investment Funds (AIFs), Venture Capital (VC) firms, recognised angel networks, or other institutional investors officially recognised by these regulatory bodies. - Proof of Investment: Applicants must submit a signed funding agreement with the institutional investor and verifiable proof of fund receipt, such as a Foreign Inward Remittance Certificate (FIRC) for investments from outside India, or bank transaction proofs. - Women-Led Bonus Qualification: For the additional 20% bonus incentive, women founders must collectively hold more than 50% equity in the company.
How to apply
The application process for the Investment-Linked Assistance is conducted entirely online:
- **Online Application Submission**: Applicants must file their submissions via the official Madhya Pradesh Startup portal at startup.mp.gov.in. - **Document Submission**: Required documents must be uploaded, including the DPIIT certificate, a signed investment agreement with the institutional investor, proof of fund receipt (e.g., bank statements or FIRC), and bank details for disbursement. Correct preparation of all paperwork is essential for the review stage. - **Reimbursement-Based Disbursement**: Assistance is provided as a reimbursement. The startup must first obtain the investment from the qualifying institutional investor. After the investment is received, the assistance is processed and paid out, subject to policy norms and document verification. The Department of MSME typically reviews the application to confirm eligibility and the legitimacy of the investment.
How applications are assessed
Applications are submitted via the MP Startup portal, accompanied by documentation that confirms DPIIT recognition, proof of investment received, and incorporation particulars of the company. The competent authority, acting under the MP Startup Policy 2022, examines each application. Upon approval, startups are granted financial assistance that corresponds to the eligible external investments they have secured.
Frequently asked questions
Who is eligible to apply for the Investment-Linked Assistance?
Startups recognised by DPIIT, registered and operating in Madhya Pradesh, and backed by investment from a SEBI/RBI-recognised institutional investor or angel network qualify.
What is the maximum financial support available under this program?
A startup may receive up to ₹15,00,000 per investment instance, with this amount available across four funding stages, for a total of ₹60,00,000.
Are there any special benefits for women-led startups?
Yes, women-led startups—defined as those with more than 50% women equity ownership—are eligible for an extra 20% bonus on the standard assistance for every funding instance.
How is the funding disbursed?
The funding is disbursed as a reimbursement once the startup has secured investment from a qualified investor and submitted the required documents through the MP Startup portal.
Is there a fixed deadline for applications?
No, applications for the Investment-Linked Assistance are accepted throughout the year, in line with the startup's investment events.
Sectors
- Investment Linked
- Matching Grant
- Equity Free
- Dpiit
- Women Founders
- Madhya Pradesh
Details last verified on 7 September 2026. Source: the issuer's published information.