A startup in India in early stage funding under SIDBI SMILE scheme must primarily show

The SIDBI SMILE (Soft Loan Fund for Micro, Small, and Medium Enterprises) scheme supports MSMEs in manufacturing and service sectors, with a strong focus on 25 "Make in India" sectors. It targets new startups and existing businesses for expansion, modernisation, technology upgrades, and equipment finance.

It is for new and small businesses, so there is no focus on industrialisation or export prospects, and high collateral security is not expected, as these are not extremely capital-intensive loans. The SMILE scheme offers quasi-loans.