How to Secure Your First ₹10 Lakh in Startup Funding: A Step‑by‑Step Guide
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Whether you're a college student with a prototype or a budding entrepreneur with a vision, raising your first ₹10 lakh can feel like climbing Everest. But with the right roadmap, it’s achievable—even without a famous surname or investor contacts. Here's a detailed, step-by-step guide with trusted Indian resources to help you secure early-stage startup funding.
1. Officially Register Your Startup
The very first step is to get your startup registered under DPIIT (Startup India) or Udyam (MSME). This makes you eligible for government grants, loans, tax exemptions, and startup competitions.
It also increases your credibility among investors, incubators, and banks. A registered startup is seen as serious, legitimate, and future-ready.
👉 Trusted Link: Startup India Funding Support
2. Build a Solid Business Plan & POC
Investors and schemes will ask for a detailed business plan, budget forecasts, market analysis, and a proof of concept (POC). A strong pitch deck and POC validate your startup’s seriousness.
Make sure your plan outlines how you’ll use the ₹10 lakh, your target market, and how soon you expect returns. Visuals, graphs, and a prototype demo can make a big difference.
👉 Trusted Link: Startup India – Build Your Business Plan
3. Raise Funds from Friends, Family & Bootstrapping
In the pre-seed stage, funding your business yourself (bootstrapping) or borrowing from friends and family is common. In India, this "FF&F" round can easily raise ₹2–10 lakh.
This shows future investors that you're committed enough to take personal financial risks. Just make sure to keep written records or simple agreements to avoid future disputes.
👉 Trusted Link: Razorpay Rize – How to Raise Early Funds
4. Take Advantage of Government Schemes
You can access various funding schemes:
- Startup India Seed Fund Scheme (₹2–50 lakh)
- Mudra Loan (Tarun) (₹5–10 lakh)
-
Stand-Up India Loan (for women & SC/ST founders: ₹10 lakh–₹1 crore)
These schemes offer low-interest or zero-equity support, giving you breathing room in the early stages. Often, the only requirement is a clear plan and basic documentation.
👉 Trusted Link: Instarem – Government Loans for Startups in India
5. Join Incubators & Accelerators
Incubation centres at IIMs, IITs, or private hubs offer mentorship, seed funding, co-working spaces, and networking. For example, AICs (Atal Incubation Centres) and state-level incubators like Rajasthan iStart have funded dozens of startups.
They often offer grants between ₹2–25 lakh, industry connections, and guidance on pitching. Being incubated also improves your chance of getting future VC investment.
👉 Trusted Link: Times of India – Youth Startups from Incubators
6. Apply for Collateral-Free Loans via CGSS
The Credit Guarantee Scheme for Startups (CGSS) allows you to get loans up to ₹5 crore without any collateral, which makes banks more willing to lend.
This is especially helpful for youth who don’t own property or assets to offer as security. These loans also come with government-backed repayment guarantees, reducing lender risk.
👉 Trusted Link: Wikipedia – Startup India & CGSS
7. Participate in Startup Competitions & Challenges
Win funding without giving away equity. Participate in challenges by TiE, IITs, NASSCOM, or government programs like NITI Aayog’s Women Entrepreneurship Platform.
These competitions also bring media exposure, mentorship opportunities, and investor attention. Winning or even becoming a finalist adds immense credibility to your startup.
👉 Trusted Link: Asoka – 10 Ways to Get Funding in India
8. Approach Angel Investors & Networks
Early-stage angel investors like Indian Angel Network (IAN) and Mumbai Angels can provide ₹5–10 lakh, plus mentorship and industry connections.
You need a compelling pitch deck, basic traction, and a clear monetization model. Don’t just ask for money—show how you’ll make it grow.
👉 Trusted Link: Wikipedia – Indian Angel Network
9. Try Crowdfunding Platforms
Platforms like Ketto, Wishberry, or FuelADream allow you to raise funds from the public. Great for B2C product validation and community building.
It also proves early demand for your product and brings real users into your journey. Keep your campaign visual, honest, and reward-based to boost contributions.
👉 Trusted Link: Finlender – Crowdfunding for Startups
10. Explore Venture Debt or Corporate VC Later
After you've gained some traction, look into venture debt funds like Alteria Capital or corporate VCs like Tata Ventures or Reliance Ventures for scalable funding.
These sources are great for working capital or expansion without giving away large equity. Make sure you understand repayment terms and structure before signing.
👉 Trusted Link: Inc42 – Startup Funding Options in India
✅ Final Thoughts
Your first ₹10 lakh won’t arrive overnight, but it also doesn’t require magic or millionaire parents. With the right steps, solid documentation, and resourcefulness, you can raise it honestly and smartly.