The procurement practices of the government used to be an exclusive domain of established players, where governmental procurement was an increasingly difficult environment for start-ups to operate in due to complex bidding processes, experience requirements, large earnest money deposits, and other related turnover criteria. The current reality of the Government e-Marketplace (GeM) in 2025 has changed that perception dramatically. GeM has now evolved into one of the most startup-friendly global platforms for procurement, with more than 30,000 startups having fulfilled orders totalling more than Rs 38,500 crore and growing.
DPIIT's Startup Runway 2.0 program, which provides its recognized benefits, has been instrumental in removing the traditional barriers to entry for start-ups while also creating new access points to government buyers. These include exemptions from EMDs and greater flexibility with respect to experience requirements and new dedicated tender categories specifically designed for start-ups, along with brand protection measures. As a result, GeM provides start-ups with real competitive advantages that allow them to effectively compete against larger, established competitors. If you are a DPIIT-recognized start-up, and you have not yet considered the benefits that GeM provides, you are potentially leaving a significant amount of revenue on the table.
Understanding Startup Runway 2.0: Your Direct Path to Government Buyers
Startup Runway 2.0 provides a platform for startups to promote their creative and innovative products and services through an easy-to-use marketplace. The difference between this marketplace and other seller categories is that this category allows for startups to introduce revolutionary and innovative products through the marketplace. Standard marketplace sellers usually fall under a conventional procurement category or require proof of meeting certain eligibility requirements.
The Startup Runway also allows for startups recognized by the DPIIT to showcase their products/services through a sustainable list of 14 sub-sectors recognized globally; this includes, but is not limited to, advanced manufacturing, robotics, agritech, new food, artificial intelligence, big data analytics, augmented reality, virtual reality, blockchain, cybersecurity, edtech, healthtech, life sciences, fintech, consumer electronics, the Internet of Things (IoT), clean energy, space technology, and technology related to defense.
What differentiates Startup Runway from other categories within the GeM marketplace is the fact that the Startup Runway provides all the same functionalities of other GeM seller categories with added benefits that are unique to startups. As a startup, you will have access to the same tools that established vendors have for sourcing products, conducting bidding, reverse auctioning, category demand aggregation, and the ability to communicate with buyers; however, you will be held to less stringent qualification standards and will have the added benefit of protection for your intellectual property.
In the trial-based listing process, early-stage companies validate their product in the marketplace using actual government purchases. The products have a 15-day trial period, and services will be on trial for 8 to 16 weeks. After receiving a minimum of 3 ratings during the trial period, your product qualifies to be listed on the GeM Marketplace as an option for sale to every agency throughout the nation at once. This process allows you to turn government customers into references for wider market access.
When government buyers begin their search for innovative solutions that aren't offered by traditional suppliers, they specifically go to Startup Runway. Startup Runway enables you to gain visibility with buyers who are actively looking for innovation in addition to the traditional commodity-type offerings. As an example, the marketplace allows you to be seen by government buyers who are searching specifically for providers of AI-based analytics tools, IoT-based monitoring systems, biotech products, and other innovative service delivery systems.
DPIIT Recognition: The Foundation of Startup Benefits on GeM
To access startup-specific advantages on GeM, you must have DPIIT (Department for Promotion of Industry and Internal Trade) recognition. The DPIIT certificate is proof that you are a startup and, therefore, gives you access to various government procurement benefits, as well as taxation benefits, compliance benefits (labor & statutory), and fundraising benefits.
To be eligible for DPIIT recognition, your business must be incorporated as a Private Limited Company, Registered Partnership Firm, or LLP between 2010 and 2020 and have an annual turnover of no more than Rs 100 crore (INR) for any FY in which you were incorporated. The primary requirement for DPIIT-based recognition is that you need to demonstrate that you are working on improving/developing (or can improve/develop) a product, service, or process that has a scalable business opportunity, with the potential to generate a significant number of jobs and wealth.
Your business idea must exhibit evidence of innovation using technology in the core product/service/business model distribution system or method of solving problems. DPIIT provides preference to startups developing solutions in the following sectors: social impact, waste management, water management, financial inclusion, education, agricultural technology, biotechnology, health care, renewable energy, mobility, defense, space systems, railway systems, and textile systems.
The DPIIT recognition process is entirely online and free of charge. Applicants can complete the application online or by mail through startupindia.com, submitting their business name, information about their company, and details concerning the innovative solutions provided by their company. Once an application is submitted and all documentation has been received, recognition typically takes 2-4 weeks. After successful recognition, an applicant receives a DPIIT recognition number, which may be used for the purpose of accessing benefits provided under GeM and various government programs.
Once an applicant has received recognition from DPIIT, the applicant may register for GeM using the DPIIT recognition number. Through this method of registration, the GeM website automatically flags an applicant's status as being a startup recognized by DPIIT and will also provide the additional benefit of being able to access the Startup Runway and other offers associated with the Startup Runway.
Major Benefits: How Startup Status Changes Your GeM Experience
Startups that are recognized by DPIIT have multiple benefits on GeM as compared to other regular sellers. This significantly changes the way competition will work for both kinds of sellers.
Startups are exempt from EMD requirements on all GeM tenders. EMD requirements can vary from Rs 50,000 to Rs 10 lakh depending on the tender, and start-up businesses that may have low capital to work with will need to set up the EMD through a bank guarantee, using credit facilities that require payment, which creates cash-flow problems. With the EMD exemption, DPIIT startups can bid on high-value tenders without having to make any upfront payments.
Exemptions from prior experience and turnover create situations for startups that would be impossible if they were required to have government experience before winning a government bid. For traditional tenders, a bidder must prove that they have previously fulfilled orders of the same type and value, and for startups, having that requirement created an impossible situation to become established—how can a person win their first government order when they need to have had previous government orders to be eligible? DPIIT-recognized startups in the manufacturing sector are exempt from prior experience and turnover requirements, provided they can show that they have the capability to perform the projects and their manufacturing facilities are located in India.
The relaxed technical specifications that apply to Startup Runway enable you to offer innovative products that may not have a complete match with the current technical specifications required to be listed under regular GeM (Government e-Marketplace) categories. Traditional procurement uses standardized technical specifications that are designed specifically for traditional products; therefore, even though your innovative solution may resolve the same problems as the standard product, your product would likely not fit one of these standardized specifications. Startup Runway will accept non-standard technical specifications; however, your innovation will be available to government buyers in search of novel approaches and innovative products.
Startup Runway also allows startups to protect their brand, as well as their intellectual property (IP), in relation to government procurement. By listing a product with brand protection and IP protection, a startup can ensure that the product cannot be duplicated by others while still being available for purchase by government buyers.
This program also allows for self-certification of compliance, significantly reducing the regulatory burden on startups. Under the Government of India's Startup India initiative, a startup can self-certify its compliance with six labor laws and three environmental laws during its first three years of operation. This eliminates inspection visits from regulatory authorities and significantly reduces compliance costs, enabling you to better capture resources for your product development and delivery, rather than expending those on regulatory paperwork.
Startup-Friendly Tender Categories: Where to Focus Your Efforts
While Startup Runway accommodates diverse innovations, certain tender categories on GeM have proven particularly receptive to startup participation and offer consistent opportunities.
Government agencies at all levels are currently digitizing their operations, building e-governance platforms, implementing data analytics, and upgrading their IT infrastructures; therefore, it is no surprise that government tenders for custom software development, system integration, cybersecurity solutions, cloud services, and IT consulting appear on GeM (Government eMarketplace) every day. Tech startups with proven software development capabilities, particularly those developing innovative products and services based on artificial intelligence (AI), machine learning, blockchain, or data security systems, have become key target markets for the IT departments of government agencies.
The second largest area for startups is the development and use of healthcare technologies, including medical devices, as digitization in the healthcare sector increases at a rapid pace. Tenders are published regularly for telemedicine platforms, hospital management systems, electronic health records (EHRs), IoT-enabled diagnostic equipment, remote patient monitoring devices, and healthcare analytics tools. Startups that have received CDSCO Approval for their medical devices and have NABL Certification for testing can easily access regular tender opportunities from government hospitals, primary health centers, and medical colleges.
The third opportunity area for startups is the clean energy and sustainability sector. Government agencies see clean energy and sustainability solutions as part of their environmental commitments and therefore give preferential treatment to startups that provide measurable environmental impact as well as functional solutions. Solar panel systems, energy management systems, electric vehicle charging infrastructure, waste management systems, water treatment plants, air quality monitoring tools, and consulting services that provide energy management are all currently available to be procured through regular tender publication on GeM. Startups that can provide measurable environmental impact can expect to receive a high level of interest from prospective buyers within government organizations.
Digital Classroom Technology, Learning Management Systems, Education Content Development, Skill Assessment Platforms, and Online Assessment Systems have been adopted by Education Departments, Universities, Schools, and Other Training Institutions. Companies that develop scalable, accessible, vernacular-language-enabled education technology are well positioned to take advantage of these opportunities.
AgTech and food processing align closely with the government's agriculture and food security agenda and the well-being of farmers. Anything from precision farming technology and supply chain solutions linking farmers to markets to cold chain storage options, agricultural equipment, and professional services is eligible for government procurement. Start-ups creating technology solutions to address real-life issues for farmers will be able to connect with agriculture departments, cooperatives, and rural development initiatives in their pursuit of growing the economy and improving the lives of farmers.
There are many areas in which defense and security technology can provide high-value access for startup companies that specialize in these fields. Surveillance systems, communication devices, government network cybersecurity tools, authentication technologies, and defense software can be found within government tenders in a variety of categories. Many of these offer multi-year contracts with very high levels of security clearance and government specification requirements to be met before receiving a contract from the government.
The continuing evolution of urban infrastructure presents many opportunities for companies to develop smart city solutions, such as traffic management software using IoT technology, smart parking systems, municipal public Wi-Fi networks, waste collection management software, water distribution monitoring systems, street light management systems, and citizen engagement solutions. These connections can be made to municipalities across Canada and their respective Smart City SPVs.
Navigating the Registration and Listing Process
Getting started on GeM as a startup requires systematic execution through several steps, each building on the previous one.
To register as a startup with Startup India, the first step is to obtain DPIIT recognition. Before applying for DPIIT recognition, your company must be registered as either a private limited company, an LLP, or a partnership firm. The company must also have been founded within the last 10 years and have an annual turnover of less than Rs 100 Crores. You will need to provide a description of your innovative product or service that demonstrates both its technology and scalability. You must submit your application for DPIIT recognition with all required documents, such as a certificate of incorporation, a business plan, and a description of your innovation.
After you have received DPIIT recognition, you must then register as a seller on GeM. When you register with GeM, you will need to provide your DPIIT recognition number, and this will automatically mark your business as a registered startup within the GeM platform. You must also create your seller profile and complete all registration requirements, such as verifying your GST, entering your bank account details, verifying your PAN, and entering information about your authorized signatory.
Once you have successfully completed your registration on GeM, you can log into your seller dashboard and see the #StartupIndia logo blinking. To access the Startup Runway submission form, click on this logo. In the Startup Runway submission form, you will need to provide detailed information about your innovative product or service, including the technical specifications, pricing, delivery capacity, and the target customer(s) for your innovative product or service.
Use the 14 categories to classify your products or services. Include a full set of specifications, even if they differ from the typical GeM categories. Startup Runway is able to accept specifications that are unique for innovative products. Include high-quality product images, demonstration videos if any, technical documentation, and third-party certifications/test reports that support or validate your solution.
Your listing will be reviewed by a committee to determine whether it truly represents innovation as an eligible government procurement. The average time for a review is between five and ten business days.
The next stage of Startup Runway is to put your product through a trial period. You will need to make contact with potential government clients who may be interested in purchasing your product. You should provide product demonstrations and, if possible, implement pilot programs and provide proof-of-concept to secure trial orders from at least three separate government clients.
Completing all trial orders successfully and receiving positive ratings on all trial orders will give you automatic eligibility to sell on GeM as a regular seller. Your listing will now be visible to all government buyers—not just those on Startup Runway—and will mark the end of your transition from an experimental startup to an established federal supplier.
Success Strategies: How Startups Win on GeM
Startups that succeed on GeM follow certain patterns that differ from how established vendors approach the platform.
First, leverage your innovation story effectively. Government buyers browsing Startup Runway are explicitly looking for innovative solutions, not commodity products. Clearly articulate what makes your solution innovative—what problem it solves differently, what technology enables the innovation, and what outcomes it delivers that conventional solutions don't. Your product description should read like a value proposition, not just a technical specification sheet.
Second, start with small trial orders and over-deliver. Don't immediately chase the largest tenders available. Focus on winning smaller trial orders where you can demonstrate exceptional execution. Exceeding expectations on trial orders builds ratings and references that position you for larger opportunities. Government buyers talk to each other—word spreads about startups that deliver exceptionally.
Third, invest in documentation and presentation quality. Your GeM listing competes with established vendors who have professional documentation. Match or exceed their presentation quality with clear specifications, professional images, comprehensive technical documentation, and transparent pricing. Poor presentation signals a scrappy startup that may lack execution capability, even if your technology is superior.
Fourth, be responsive and communicative. Government buyers trying new startup solutions are taking perceived risks. Reduce that risk through exceptional communication—quick response times, proactive updates, transparent timelines, and professional interaction. Build relationships with buyer contacts who can become champions for your solution within their departments.
Fifth, price competitively but sustainably. The EMD exemption and relaxed qualification criteria help you compete, but you still need reasonable pricing. Don't underprice desperately—government buyers associate unrealistically low prices with poor quality or inability to deliver. Price competitively while ensuring you can execute profitably and build a sustainable business.
Finally, use the trial phase strategically for product refinement and market validation. The feedback from government buyers during trial orders provides invaluable insights into product-market fit, usability improvements, and feature priorities. Actively incorporate this feedback to refine your offering before graduating to full marketplace listing.
The Broader Ecosystem: Beyond Just Marketplace Access
GeM's startup benefits extend beyond just procurement opportunities into a comprehensive support ecosystem.
The SWAYATT initiative is a program specifically designed to help and support startups via specific training and onboarding assistance and continued support. SWAYATT also runs workshops, holds mentoring sessions, and provides helpdesk support to help startups better utilize the complexities of the GeM platform rather than attempting to learn the system on their own.
The GeM Learning Management System (LMS) is a structured online training resource, providing comprehensive online training related to bidding strategies, catalogue management, order fulfillment, document requirements, and best practices. Startups can utilize these resources and build their knowledge of how to procure as they progress through the training and learn at their own pace.
The GeM organizes regular Startup Mahakumbh events and innovation challenges to enable startups to show their solutions, link up with buyers in government, gain mentorship and guidance from procurement representatives within government, and find similar challenges alongside other startups. By participating in these types of events, startups typically benefit from establishing pilot projects and creating relationships directly with a buyer.
Adding more value to your benefits through integration with other Startup India benefits. In addition to the GeM benefits you receive from the DPIIT recognition, you will qualify for a 3-year income tax exemption under Section 80-IAC (for 10 years), an angel tax exemption under Section 56, the Startup India Seed Fund Scheme, the Credit Guarantee Scheme, and faster and cheaper patent and trademark examination.
Combining these benefits allows you to integrate the benefits of GeM with those of the Startup India Seed Fund Scheme, providing your startup with access to a full suite of benefits that include funding, compliance relief, market access, and intellectual property protection.
The Bottom Line: GeM as Strategic Growth Channel for Startups
GeM is not just a sales channel for DPIIT-recognized startups, but rather a road to valid, sustainable expansion through government procurement. This Rs 38,500 crore in orders for 30,000 (+) startups indicates that the potential for this channel is real and viable and ultimately provides business opportunities for the aspiring startup.
The combination of EMD exemption, lowered experience requirement, the Startup Runway (a dedicated marketplace for startups), IP protection, and access to government shoppers searching for innovation creates the right environment for startups to compete against traditional suppliers and win.
Strategic success involves obtaining DPIIT recognition, registering correctly on GeM, effectively using Startup Runway, targeting the correct tender categories, fulfilling trial orders to exceptional standards, securing ratings and references, and transitioning from smaller orders to larger contracts over time.
Successful startups look to use the GeM platform as a long-term business development opportunity and do not look at it as a quick way to generate revenue. The GeM platform rewards startups that consistently deliver quality products, communicate clearly and responsively, and execute professionally with the traits that successful startups need to develop anyway.
If your startup is innovative and is recognized by DPIIT, you should not be questioning whether GeM presents an opportunity for you. You know it does! You should be questioning whether you are ready to put the time and effort into accessing it: to register, use Startup Runway, find tender categories that match your innovation, start with small orders, provide exceptional service, and build your presence in the marketplace over time.
The government procurement market of Rs5 lakh crore is now open to startups through the GeM platform, and it is up to you to access that market.
