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Context:

Arrest for allegedly cheating the Ministry of Electronics and Information Technology (MeitY) of over Rs 3 crore under the SAMRIDH scheme for startups.

What is the SAMRIDH Scheme?

The Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH) initiative launched by the Ministry of Electronics and Information Technology (MeitY) in August 2021 under the National Policy on Software Products–2019.

It aims to empower the startup ecosystem by supporting IT-based startups with funding, mentorship, and resources to scale their businesses. 

 It focuses on promoting innovation, driving social impact, and allowing startups to compete in domestic and international markets.

The goal is to support 300 tech startups over three years, making India a global leader in technology and entrepreneurship.

Key Objectives

Support Accelerators: It strengthens existing and upcoming accelerators (organizations that guide startups) to select and nurture high-potential IT startups.

Scale Startups: It helps startups grow by connecting them with customers, investors, and international markets.

Provide Funding: It offers up to Rs 40 lakh per startup, matched equally by accelerators, based on the startup’s valuation and growth stage.

Promote Innovation: It encourages startups to develop innovative solutions in areas like health-tech, ed-tech, agri-tech, fin-tech, consumer-tech, Software as a Service (SaaS), and sustainability.

How Does the Scheme Work?

Selection of Accelerators

MeitY invites accelerators to partner with the scheme. To qualify, accelerators must:

• Have at least 3 years of experience in incubation.
• Have supported 50+ startups, with at least 10 securing non-public investment, or have run 3 cohorts of accelerator programs.
• Possess infrastructure to support startups and networks for domestic and international market access.

An expert committee selects accelerators based on their track record and ability to nurture startups.

Selection of Startups

Each accelerator picks 5–10 startups through a multi-level screening process, focusing on domains like:

• Health-tech (e.g., medical apps)
• Ed-tech (e.g., online learning platforms)
• Agri-tech (e.g., farming solutions)
• Fin-tech (e.g., digital payments)
• Consumer-tech (e.g., e-commerce)
• SaaS (e.g., cloud-based software)
• Sustainability (e.g., eco-friendly solutions)

Startups must be Indian citizens, have a proof of concept, and show high growth potential.

Support Services Provided

Accelerators run 6–12 month cohorts, offer startups a range of services to accelerate growth:

• Market Research: Experts analyze market needs to position products effectively.
• Mentorship: Tech-specific mentors guide startups in product and business development.
• Legal Assistance: Support for intellectual property (IP), company incorporation, and compliance.
• Networking: Access to a shared platform for co-learning, weekly founder meetings, and industry connections.
• Demo Day: Startups pitch to venture capitalists (VCs) and angel investors to secure funding.
• Investment Negotiation: Accelerators help startups close deals with investors.

Funding Mechanism

• MeitY provides up to Rs 40 lakh per startup (averaging Rs 30 lakh per cohort) through accelerators, based on the startup’s valuation and growth stage.
• Accelerators match this investment, doubling the funding (e.g., MeitY’s Rs 40 lakh + accelerator’s Rs 40 lakh = Rs 80 lakh for top startups in some cases, like T-Hub’s program).
• MSH may take equity in startups via safe or promissory notes to ensure the program’s sustainability.

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 SAMRIDH Scheme 

Source: 

NEW INDIAN EXPRESS