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SIDBI Innovation Challenge Fund 2026

SIDBI challenge offering up to INR 2 crore for scalable AI prototypes supporting MSMEs throughout their lifecycle.

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Funding amount
Fund support up to INR 2 Crores for implementation of selected AI-enabled prototype solutions
Scheme
SIDBI Innovation Challenge Fund
Open for
The call is directed toward Indian startups, MSMEs and innovators., Applications opened on 26 September 2026., Detailed entity-location, consortium and incorporation conditions should be confirmed in the application notice.
Deadline
Applications close 16 October 2026

About the Program

The SIDBI Innovation Challenge Fund invites scalable, AI-enabled prototype solutions that simplify and strengthen the MSME lifecycle. Selected interventions may receive implementation support of up to INR 2 crore.

Eligibility requirements

  • Applicants must propose an AI-enabled prototype addressing one or more published MSME lifecycle challenges.
  • The intervention should be scalable or replicable and capable of producing measurable outcomes.
  • Eligible applicants are reported to include startups, MSMEs and innovators.
  • Detailed incorporation, revenue, company-age and registration conditions are n/a.

Offerings / Benefits

  • Fund support up to INR 2 crore may be considered for implementation.
  • Opportunity to develop and deploy solutions with SIDBI’s MSME ecosystem.
  • Potential institutional adoption of proven AI models.
  • The final funding instrument, disbursement structure and amount awarded to each selected applicant should be confirmed during evaluation.

Sectors supported

AI-enabled business guidance, enterprise setup and compliance, credit readiness, financial management, working-capital support, receivables, profitability, sales, market access, multilingual digital assistance and structured MSME-support journeys.AI & Artificial Intelligence

Selection process

  • Applications are expected to be assessed for prototype readiness, MSME relevance, scalability, replicability, measurable outcomes and institutional-adoption potential.
  • Detailed shortlisting, presentation, diligence and contracting stages are n/a.

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