PRASFUTAN - R-ABI Seed Stage Funding for Agriculture Startups

• DPIIT-recognised agritech startups in Uttar Pradesh under 5 years old with TRL 5+ technology.

About this scheme

PRASFUTAN (Product to Market Stage) is RKVY-RAFTAAR's seed-stage funding component for startups with a minimum viable product working in agriculture and allied sectors. Administered through Regional Agri-Business Incubators (R-ABIs), it provides non-dilutive grant support of up to 25 lakh (capped at 85% of project cost) to help ventures scale operations from product launch to market viability.

The program requires a minimum 2-month residency at an R-ABI, during which startups receive incubation facilities, lab testing and certifications, training, and intensive mentoring. Upon demonstrating consistent progress, selected startups advance to seed funding - enabling them to invest in product optimization, market access, and operational scaling.

Grant disbursement follows a milestone-linked structure across three tranches (40%, 40%, 20%), tied to achievement milestones and completion of each phase. The program caps support at a maximum of 20 startups per R-ABI to ensure hands-on oversight. Beyond funding, grantees access R-ABI's Demo Day for investor pitches, market access facilitation, and network connections to accelerate fundraising from angels, VCs, and commercial lenders.

Who can apply

• Startups with a minimum viable product (MVP) in agriculture or allied sectors
• Must be incubatees with at least 2 months residency at an R-ABI
• Must be registered as a legal entity in India (Private Limited, LLP, or Partnership)
• Must be classified as an Indian startup per DIPP definition - not a foreign subsidiary or restructured business
• Annual turnover must not exceed 25 crore in any year since incorporation
• Must be incorporated within the past 5 years
• Cannot have been previously supported under this seed funding component
• Cannot be receiving duplicate grants from other Government of India ministries for the same activity
• Only for Uttar Pradesh-registered startups (applies to R-ABI, IIT BHU Varanasi)

Eligible entity types: Private Limited, LLP, Partnership

Benefits & funding

• Non-dilutive grant of up to Rs.
• 25 lakh (capped at 85% of project cost), released in three milestone-linked tranches (40%, 40%, 20%).
• Includes a minimum 2-month residency at R-ABI with lab testing, certifications, training, and intensive mentoring.
• Post-grant support covers Demo Day access for investor pitches, market facilitation, and connections to angels, VCs, and commercial lenders.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with R-ABI (RKVY-RAFTAAR), in your own name.

1. 1

   Applicants submit a project proposal, business plan, and financial projections via Google Form.

2. 2

   After a minimum 2-month residency at R-ABI, the RIC evaluates business performance before recommending to the Regional Committee.

3. 3

   Final approval comes from the Nodal Division, Ministry of Agriculture, with the first tranche released upon execution of a legal agreement.

Frequently asked questions