UP clears scheme for departments to buy from start-ups via new e-marketplace

The Uttar Pradesh cabinet, chaired by Chief Minister Yogi Adityanath, has approved a Startup Procurement Scheme-2026 that lets government departments buy products and services directly from start-ups registered under the state's start-up policy. The decision was taken at the cabinet meeting of 9 October 2026, which cleared 39 proposals. Under the scheme, the Uttar Pradesh Startup Mission will set up and run a UP Startup E-Marketplace where eligible start-ups can list what they make, so that departments and other state agencies can place orders with them.

For a young founder, the hardest sale is often the first one. Large buyers, and governments in particular, usually want a track record, years of turnover and the paperwork that comes with formal tenders, which most new companies cannot offer. That leaves many start-ups with a working product but no big customer to prove it. A procurement route built for start-ups tries to break that circle.

Government orders matter beyond the money. A work order from a state department is a reference that a start-up can show to private customers and investors. It also gives founders a chance to test their product at scale, in real offices, schools, hospitals or field operations, which is hard to arrange otherwise.

The scheme is especially relevant for founders in smaller cities in Uttar Pradesh, where local private demand for new technology can be thin. If departments actually use the marketplace, a start-up in a district town could sell to the state without needing an office in Lucknow or contacts in the secretariat.

The details will decide how useful it is. The official notification, which is yet to be widely published, should set out exactly which start-ups qualify, how products are approved for listing, how prices are checked and how fast suppliers are paid. Delayed payments are a common complaint from small firms that sell to governments, and a marketplace will only help if bills are cleared on time.

Short-term: Start-ups registered under the UP start-up policy should prepare to list their products once the e-marketplace goes live, and watch for the formal notification.

Long-term: If departments use it, the scheme could give young companies in Uttar Pradesh steady early revenue and references, and encourage more students and graduates in the state to build products for public services.

Who is affected: Registered start-ups and young founders in Uttar Pradesh, student entrepreneurs at incubators in the state, government departments and agencies that buy goods and services, and investors looking at early-stage companies.

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