Three of nine YouthNet SISFS awardees registered outside Nagaland

Nationwide selection follows scheme guidelines, YIC clarifies

Moa Jamir 
Dimapur | November 10

Three of the nine startups selected for seed funding under Series 4 of the Startup India Seed Fund Scheme (SISFS), facilitated by the YouthNet Incubation Centre (YIC), have their registered offices outside Nagaland, with YouthNet stating that the selection was open to eligible applicants nationwide.

The nine startups were announced as awardees of a total of Rs 1 crore on September 30. The accompanying media release described the funding as a “defining moment for Nagaland’s startup landscape”, while a YouthNet official stated that “every startup here carries the hopes of a new Nagaland”.

The awardees are Toshifez Innovations Pvt Ltd, Syncnl Networks Pvt Ltd, Zodmo Technologies Pvt Ltd, Greenovex Pvt Ltd, October Pumpkin-Shi Pvt Ltd, A&D Renewables Energy Pvt Ltd, Tuensang Hills Agro Pvt Ltd, Green Buds Pvt Ltd and Khamlou India Pvt Ltd.

However, records on the Union Ministry of Corporate Affairs (MCA) portal indicated that three of the awardees have registered offices outside Nagaland. 

Toshifez Innovations Pvt Ltd is registered in Assam, while Greenovex Pvt Ltd and October Pumpkin-Shi Pvt Ltd are registered in Uttar Pradesh and Manipur, respectively. 

In view of the contrast between the announcement’s emphasis on Nagaland’s startup landscape and the registered-office details of the awardees, The Morung Express sought clarification from YouthNet on the selection process and the basis for describing the cohort in the context of the state’s homegrown startup ecosystem.

Nationwide selection, says YouthNet
In response,YouthNet stated that the call for applications was open to all startups meeting the SISFS eligibility criteria, irrespective of their state of registration. 

It maintained that the inclusion of out-of-state registered companies was consistent with the scheme’s national framework and did not indicate a change in its focus on Nagaland.

“YIC’s role is to implement SISFS in line with the national guidelines while continuing to support Nagaland’s startup ecosystem and homegrown talent,” it said, providing the SISFS scheme guidelines.

The notice inviting applications for SISFS issued by YouthNet did not specify any State-spicfic criteria but stated that “the Seed Fund will be disbursed to eligible startups through eligible incubators across India.”

On the connection of the three out-of-state registered companies to Nagaland, YouthNet said the registered office alone did not necessarily reflect a startup’s roots or operations. 

“Registration alone does not capture a startup’s full connection to Nagaland: founders may have roots here, and businesses may have substantial operations here while also serving markets elsewhere. YIC remains committed to strengthening Nagaland’s ecosystem and supporting its entrepreneurs,” it held. 

It stated that the founders of the Assam- and Manipur-registered companies were residents of Nagaland, had grown up in the state and remained closely connected to it.

However, the response did not provide company-specific details on Greenovex Pvt Ltd.

YouthNet also said that the majority of the Series 4 startups operate primarily in Nagaland, while some have operations or market reach beyond the state.

On the use of the term “homegrown”, it said the expression was used broadly in the context of YIC’s SISFS initiative and could refer to a startup from Nagaland or, in keeping with the scheme’s national mandate, a startup originating in India.

The inclusion of out-of-State companies, YouthNet said, reflected the nationwide applicant pool and SISFS eligibility criteria, not a shift in YIC’s selection approach.

The applications were assessed against the prescribed criteria, with recommendations subject to approval and the availability of funds, it added. 

YouthNet said it was unable to share the application figures or state-wise breakdown due to confidentiality obligations. It added that applications were received from both Nagaland and other states, but not all applicants could be selected.

As per information on its website, YouthNet was selected as an incubator under SISFS in October 2023 by the Department for Promotion of Industry and Internal Trade (DPIIT). Through the initiative, it provides seed-funding support to startups as part of its work to strengthen the entrepreneurial ecosystem in Nagaland. Information available in public domain indicated previous awardees were State-based.

YouthNet’s response to queries by The Morung Express
(Excerpts)

“YIC’s role is to implement SISFS in line with the national guidelines while continuing to support Nagaland’s startup ecosystem and homegrown talent. Accordingly, the call was open to all startups meeting the scheme’s eligibility criteria, regardless of their State of registration. Applications were assessed against the prescribed criteria, and recommendations were subject to approval and the funding available under the scheme.

The inclusion of companies registered outside Nagaland does not represent a change in YIC’s approach or a reduced focus on the State. Registration alone does not capture a startup’s full connection to Nagaland: founders may have roots here, and businesses may have substantial operations here while also serving markets elsewhere. YIC remains committed to strengthening Nagaland’s ecosystem and supporting its entrepreneurs…”

MExN: Do the awardees registered outside Nagaland have significant operational, founder level or other substantive connections to the State?

YouthNet: Yes. The majority of these startups operate primarily in Nagaland, while a few also have operations or reach markets beyond the State.

MExN: How does YIC define “homegrown” in the context of its SISFS programme? Does this refer to registration in Nagaland, the founders’ origins, business operations in the State, or other criteria?

YouthNet:  In YIC’s SISFS context, “homegrown” is used broadly. It may refer to a startup from Nagaland or, also in keeping with the scheme’s national mandate, a startup originating in India. The reference to at least 51% ownership by an Indian founder follows the eligibility criteria provided by Startup India under the scheme.

MExN: Was the Series 4 selection open to all eligible DPIIT recognised startups irrespective of their State of registration? Given that the earlier cohorts appear to have comprised Nagaland registered companies, was the inclusion of outside registered companies a change in the selection approach or a reflection of the applicant pool and the national SISFS eligibility criteria?

YouthNet: Yes. Series 4 was open to all startups meeting the SISFS and DPIIT eligibility criteria, regardless of their State of registration. 
The inclusion of out-of-State companies reflected the applicant pool and the scheme’s national eligibility framework, rather than a change in YIC’s selection approach.

MExN: Could you share the number of applications received for Series 4, including the number of applicants registered in Nagaland and outside the State, if these figures are available?

YouthNet: Series 4 received applications from both Nagaland and other States through a nationwide call. However, we are unable to disclose the application figures, including the State-wise breakdown, due to confidentiality obligations under the DPIIT–Startup India framework.

Applications were assessed against the scheme’s eligibility and selection criteria, with shortlisted proposals submitted to Startup India for approval. As with any competitive process, not all applicants could be selected including startups from Nagaland.

Read Guidelines for Startup India Seed Fund Scheme here: 
https://seedfundapi.startupindia.gov.in:3535/filestorage/samplefiles/Guidelines_for_Startup_India_Seed_Fund_Scheme.pdf