STPI NGIS and CHUNAUTI — ₹25 Lakh Seed Funding for Software Product Startups in Twelve Tier-II Cities
Incubation and seed money for software products outside the metros
The Next Generation Incubation Scheme is entrusted by MeitY to STPI to strengthen the software product startup ecosystem in Tier-II and Tier-III cities. With a ₹95.03 crore outlay over three years it aims to handhold 300 startups across twelve STPI locations: Agartala, Bhilai, Bhopal, Bhubaneswar, Dehradun, Guwahati, Jaipur, Lucknow, Prayagraj, Mohali, Patna and Vijayawada.
Selection is through CHUNAUTI — Challenge Hunt Under NGIS for Advanced Uninhibited Technology Intervention — a series of online challenges; the eighth round is the most recent. Selected startups receive seed funding of up to ₹25 lakh, routed through a financial institution, along with STPI's incubation infrastructure, a software product security testing facility, mentoring, VC access and advisory services on HR, legal, accounting and IPR.
What a CHUNAUTI winner receives
| Item | Position |
|---|---|
| Seed funding | Up to ₹25 lakh through a financial institution, against the business proposal |
| Infrastructure | Incubation space, labs, equipment and testing facilities at the STPI centre |
| Services | Mentoring, startup and industry connects, marketing support, product lifecycle guidance |
| Grants | Internship and challenge grants for selected startups |
Focus areas across rounds have included fintech, healthcare and wellness, education and skilling, deep-tech, e-commerce, enterprise SaaS, environment, e-governance, tourism and hospitality, agriculture and cybersecurity.
STPI and its screening panels
STPI runs CHUNAUTI through its contest portal. Entries are screened online, shortlisted startups present to panels of industry and investor mentors, and STPI's selection committee finalises the cohort at each centre.
Software products, in one of the twelve cities
- •Indian startup working on software product development or a technology-based solution
- •Located in, or willing to incubate at, one of the twelve NGIS locations
- •DPIIT recognition encouraged; individuals, academicians, researchers, LLPs and partnership firms may enter but may need to register as a private limited company if selected
- •Fit with the round's focus areas
What the CHUNAUTI entry and onboarding need
- •Certificate of Incorporation and DPIIT recognition (or founder KYC for unregistered teams)
- •Challenge entry on the STPI portal: idea, solution, novelty, team, business proposal
- •Pitch deck and product demo
- •Business plan with use of seed funds and milestones
- •Founder and team profiles
- •At onboarding: incubation agreement, bank details, and the financial institution's documentation for the seed disbursement
Questions founders ask about NGIS
The scheme is tied to the twelve listed cities. Bhopal is the nearest NGIS centre; incubating there would be the route.
It is seed funding routed through a financial institution against the business proposal; the terms are set at sanction. Treat it as seed investment rather than a pure grant.
NGIS is for software products and technology solutions. A hardware startup with a substantial software product may fit; pure hardware should look at GENESIS or NIDHI.
STPI announces rounds on its startup portal; recent rounds have been roughly annual.