India's SIDBI-iDEX fund to back defence startups with up to ₹1.5 Crore

What's the deal? The SIDBIDealroom has a profile for this one. Try Dealroom →-iDEXDealroom has a profile for this one. Try Dealroom → Seed Fund 2026 will offer equity or equity-linked investment of up to ₹1.5 Crore, plus incubation support, to early-stage defence and aerospace startups in India. Backing comes through a partnership between SIDBI, iDEX, and the Pilani Innovation & Entrepreneurship Development Society (PIEDS).

Who qualifies? The fund targets DPIIT-recognised private limited companies that have already received prior iDEX grants. It focuses on defence, aerospace, and DeepTech innovations.

What's the endgame? The capital is aimed at prototyping, product development, and field trials — helping startups move ideas toward market-ready solutions. Beyond money, selected companies get incubation with PIEDS, including mentorship, go-to-market support, and networking within India's defence ecosystem.

Why now? The program is designed to bridge a funding gap for startups that have shown potential through the iDEX challenge but need capital to scale. PIEDS is an autonomous, not-for-profit society registered in 2013 and housed within the Rakesh Kapoor Innovation Center at BITS PilaniDealroom has a profile for this one. Try Dealroom →.

How it works: Applications undergo screening by PIEDS and iDEX to verify eligibility — DPIIT recognition, incorporation age, and prior iDEX grant status. Shortlisted startups may face presentation rounds, with final selection based on the innovation's potential and alignment with defence and aerospace needs.

The signal: The fund reflects India's push for self-reliance in defence and aerospace, channelling state-backed capital into DeepTech at the early stage. By pairing equity investment with structured incubation, it aims to accelerate a new generation of domestic innovators in sectors tied to national security.

Read more: Startup Grants India