Start-up in GAIL

Start-Up India’ is a flagship initiative of the Government of India. It intends to build a strong eco-system for nurturing Innovation and Start-Ups in the Country, to derive sustainable economic growth and generate employment opportunities. Government policies are also encouraging Start-Ups by providing fiscal incentives.

GAIL intends to take-up investment in Start-Ups to give a boost to the Government’s efforts and also to derive long-term benefits.

Our Mission for Start-Up Initiative is to Identify, Invest and Nurture Start-Ups that can become successful companies in the long run and provide profitable returns from this diversification.

GAIL had launched its ambitious Start-Up initiative ‘Pankh’ in July’ 2017 to invest in promising Start-ups. GAIL has created a corpus of Rs. 500 crore for its Start-Up Initiative. GAIL has made investments in 38 Start-Ups operating in various Areas.

GAIL plans to invest in Start-Ups operating in the focus areas. A new Round has been opened by GAIL for Solicitation of Investment Proposals from Start-Ups operating specifically in the Focus Areas, which mainly includes natural gas, petrochemicals ,energy, project management, bio-manure marketing, Nano materials, IoT, data mining, environment, health and social . The Start-Ups that are interested in equity investment from GAIL can apply on our website gailonline.com. GAIL’s equity investment will be limited to 20% of the total equity of the Start-Up

Proposals are now solicited from Start-Ups operating in the Focus Areas.

GAIL would look at the various parameters while evaluating the Investment Proposals of Start-Ups, however some important criteria’s are as per following:

  1. Founders details
  2. Stage of Start-Up
  3. Potential Impact of the idea of the Startup
  4. Product Details
  5. Business Model
  6. Brief Synopsis of Proposal
  7. funding sources for the proposed proposal
  8. Information’s related to funding raised and valuation
  9. Details on Innovative / Unique features/propositions
  10. Market Size, Growth Rate and Competitive Landscape
  11. Information’s related to Customers and competitors
  12. Details of technical feasibility
  13. Details of Key risks and mitigation plan
  14. Estimated project cost
  15. Expenses incurred till now
  16. Startup’s monthly burn rate
  17. Investment amount sought from GAIL and the % Equity stake offered to GAIL etc.

This Solicitation Round is open from Apr 01, 2025 to May 31, 2025

Selection Process for funding Start-Ups :

Selection of Start-Up Proposal shall be a 4-Stage Process:

  1. Eligibility Screening
  2. Shortlisting
  3. Evaluation
  4. Approval
  1. 1. The Start-Ups should be operating in any of the Focus Areas as mentioned in web portal under Tab’ Focus Areas’
  2. 2. GAIL will consider Proposals for funding only from those entities that are registered as Start-Up by Department for Promotion of Industrial and Internal Trade (DPIIT) previously named as DIPP. Presently, the eligibility criteria is-
    1. Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
    2. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
    3. Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
  3. Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Start-Up’. A proprietorship or a public limited company is not eligible as Start-Up.
  4. In addition, the following Eligibility Criteria should also be met: The Start-Up should not have been black-listed by any Government entity or any Incubation Centre.
  5. The Promoter(s) shall not have any criminal case pending in any Court of Law in India or abroad. A Declaration to this effect shall be required to be submitted in this respect.

The following Criteria is proposed to be used for Shortlisting of Start-Up proposals:

  1. Founder(s) Background
  2. Product/Service/Technology
  3. Market Size, Growth Rate and Competitive Landscape
  4. Technical Feasibility
  5. Key Team Member’s Profile
  6. Risks involved and Mitigation Plans
  7. Potential Financial Returns
  8. Scalability
  9. Intellectual Property
  10. Existing Investor Support

GAIL shall evaluate the top rated shortlisted Proposals through a specially formed Committee for the purpose. The said Committee shall also have outside experts with the necessary domain expertise.

The Committee shall discuss the Proposals with the Start-Ups for carrying out the evaluation. The Committee shall use the following broad criteria for evaluation:

  1. Does the idea bring a unique proposition
  2. Is the business model scalable and viable?
  3. Target market identification
  4. How is technology used to solve the problem? How difficult it is to replicate the product?
  5. Founder and Team
  6. Marketing and Distribution
  7. Significant competitors in similar business
  8. Start-Up financials (growth in valuation since inception till latest round)
  9. Future road map of Start-Up
  10. Primary risks involved in the business and the mitigation plan
  11. Plan for use of GAIL's funds
  12. Exit scenario from the Start-Up

The Committee will also discuss the milestones, payment terms, financing options etc. Thereafter the Committee shall submit its recommendations to GAIL.

The Start-Up shall be required to sign an Investment Agreement before commencement of Funding by GAIL.

GAIL shall carry out Valuation of the Start-Up entity through a third party at GAIL’s cost before making investments.

Subsequent to approval, GAIL shall sign an Investment Agreement with the Start-Up. The Investment Agreement shall have the salient features of the funding viz. Amount, Milestones etc.

The Funding shall commence after the signing of Investment Agreement and submission of Demand letter by the Start-Up.

Note:- GAIL shall keep the Information submitted by Start-Ups as strictly confidential.