Introduction: RDI Fund Scheme

India’s move towards a technology-driven economy depends mainly on businesses focused on research and innovation. However, such projects often face long gestation periods, high capital risk, and limited access to traditional finance. To address this structural gap, the Government of India introduced the RDI Fund Scheme, officially known as the Research Development and Innovation Fund.

Unlike regular subsidies, the RDI Fund works through managed investment and loan options, which makes expert financial planning and guidance very important. This is where RDI Fund consultancy services play a decisive role.

At Finraja Consultancy Private Limited, we help startups, MSMEs, and deep-tech companies plan, present, and secure RDI Fund financial assistance.

What is the RDI Fund Scheme?

The RDI Fund Scheme is a national program created to support high-risk and high-value research and innovation projects. The fund is provided through:

• Alternative Investment Funds (AIFs) for equity-based investments
• Loan financing structures for innovation-focused entities

The scheme gives priority to projects that show:

• Clear and unique technology advantages
• Commercial scalability
• Alignment with national innovation priorities

This makes the Research Development and Innovation Fund very different from grant-based schemes.

RDI Fund Eligibility Criteria

As per the official guidelines, RDI Fund eligibility criteria focus on how ready the technology is and how well it can work in the market.

Eligible entities typically include:

• Innovation-driven startups
• Private companies and MSMEs
• Deep-tech and R&D-focused enterprises

A key requirement is Technology Readiness Level 4 funding or above, meaning the innovation must have moved beyond conceptual validation.

Because eligibility assessment is technical and financial, expert consultancy becomes essential to avoid misalignment with policy intent.

Priority Sectors: Deep Tech Funding Scheme India

The RDI Fund Scheme strongly supports deep-tech sectors, positioning it as one of India’s most important deep tech funding schemes.

Priority areas include:

• Artificial Intelligence and advanced analytics
• Semiconductor and electronics innovation
• Biotechnology and life sciences
• Clean energy and sustainability technologies
• Advanced manufacturing and materials

Projects aligned with these sectors receive higher evaluation priority, provided they are professionally structured.

RDI Fund Loan and Equity Funding: Two Strategic Streams

One of the most critical features of the RDI Fund Scheme is its dual funding architecture.

1. Investment Stream (Equity / AIF Mode)

As per RDI Fund investments through AIFs offer:

• Indicative IRR of 5–6%, lower than market expectations
• Flexible distribution priority across funding modes
• Long fund tenure of up to 15 years (extendable)

This structure reduces pressure on innovation-led businesses while allowing patient capital deployment.

2. Loan Financing Stream

This RDI Fund loan and equity funding structure makes the scheme uniquely suited for long-gestation R&D projects.

RDI Fund Financial Assistance: Funding Limits

A critical policy safeguard is the RDI Fund funding limit 50 percent rule.

Key Rule:

• RDI Fund support (loan or equity) cannot exceed 50% of the project cost or funding round

The remaining contribution must come from:

• Promoters
• Private investors
• Strategic partners

This ensures risk sharing and financial discipline, while still offering strong government backing.

RDI Fund Scheme – Financial Assessment

These parameters are decided by the Executive Council, making professional financial representation essential.

Incentives Under the RDI Fund Scheme

Although not a direct subsidy, the RDI Fund offers powerful financial incentives, including:

• Significantly lower cost of capital
• Long repayment horizons
• Reduced promoter dilution through equity support
• Improved investor confidence due to government participation

When structured correctly, these incentives substantially improve project viability and valuation.

Why RDI Fund Consultancy Services Are Essential

The RDI Fund Scheme is not an application-driven subsidy. It involves:

• Investment committee evaluations
• Financial risk modelling
• Technology and market readiness assessment
• Policy-aligned documentation

Attempting this without expert guidance increases rejection risk.

At Finraja Consultancy Private Limited, we provide:

• Eligibility and TRL mapping
• Financial structuring and modelling
• Investment-grade documentation
• Government and fund-level coordination

We ensure your proposal is policy-compliant, financially sound, and innovation-ready.

RDI Fund Scheme for Startups

For startups, the RDI Fund scheme for startups offers:

• Access to patient capital
• Lower financial stress during R&D phases
• Long-term growth support

However, success depends on professional positioning, not self-submission.

Conclusion

The RDI Fund Scheme represents a transformative shift in India’s innovation financing ecosystem. However, its structured nature means only well-advised projects succeed.

Finraja Consultancy Private Limited acts as your strategic partner—bridging innovation with government-backed capital.

Need Expert RDI Fund Financial Assistance?

Connect with Finraja Consultancy Private Limited to structure, position, and secure RDI Fund support with confidence.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.