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The Kerala Startup Mission (KSUM) is the nodal agency of the government of Kerala for promoting entrepreneurship in the state. It is also the implementing body for the Kerala Technology Startup Policy that supports the state’s startup ecosystem through the various schemes and support programs. KSUM was founded in 2006, with the goal to promote technology-based entrepreneurship activities and to create the infrastructure and ecosystem required to support high-end technology-based startup businesses.

KSUM acts as a springboard for budding entrepreneurs who wish to launch themselves into the world of technology-based careers and has helped develop several innovative products and solutions. Over the past decade KSUM has been able to build a vibrant startup ecosystem allowing technology entrepreneurs to pursue their goals and dreams by providing them complete support in the startup life cycle. Today KSUM along with sector-specific partner organisations, boast of 2900 + registered startups, 10 Lakh + sq. feet of incubation space, 40+ incubators and 300+ innovation centres across the state of Kerala.

The interventions made by KSUM in Kerala have brought about a cultural change among the youth of Kerala, as well as in how the government goes about its work. Young minds who come up with innovative solutions now have the support of various incubators and government schemes as highlighted earlier, which not only help bring in funding but also provide mentorship and expansion opportunities at different stages. This approach of the government enables startups to entrepreneurs to get ample opportunities to collaborate with the support infrastructure to develop impactful technology solutions.

Kerala Startup Ecosystem

Kerala is on the tipping point of a big social revolution. The youth of the state are eager to pursue their dreams and create their own enterprise rather than move off the beaten track of regular employment. Various social economic and demographic factors add to the paradigm shift and the Government of Kerala has been proactively working on this by creating various programmes to inculcate an entrepreneurship culture in the impending young generations of the state. The years from 2010-2021 have been declared as the "Decade of Innovation" by India. Kerala towards the end of this decade is witnessing a wave of innovative and entrepreneurial efforts from discrete sectors. The startup ecosystem is well equipped to mark the next quantum leap. Every block an entrepreneurial ecosystem needs is in place. Kerala possesses a unique model of connecting Academics, Industries, R&D institutions and Startups, unlike other Startup Ecosystems in the country.

The Government of Kerala initiated the movement through Kerala Startup Mission (KSUM) by forging and implementing a forward-looking policy for creating a vibrant startup ecosystem in the state to foster the growth of technology entrepreneurship. Kerala Startup Mission has initiated various steps for setting up a startup ecosystem in the state.
Startups in Kerala are developing solutions in newer and better ways as they experiment with futuristic technologies like never before. Going beyond the conventional software and IT sectors, entrepreneurs from Kerala are being recognised in both national and international forums as they explore new horizons. Kerala has always stood out as one of the most literate and skilled states in India. In, no other states have schools, colleges, incubators, government institutes and startups been so efficiently interlinked. This has created an excellent opportunity for the growth of innovation, investment and entrepreneurship.

Start in Kerala

Kerala provides the best startup ecosystem to start the business and grow. Kerala Startup Mission provides a ‘Unique ID’ for startups. Unique ID will help startups to get identified with a single code which can be used in all correspondence of the startup. This ID will help startups to get identified from the single search option provided in the KSUM portal. Any stake holder from the Startup Ecosystem from across the world will be able to quickly go through the profile of the startup.

Eligibility:

• The Startup should be incorporated as a private limited company or registered as a partnership firm or a limited liability partnership
• Turnover should be less than INR 100 Crores in any of the previous financial years
• An entity shall be considered as a startup up to 10 years from the date of its incorporation
• The Startup should be working towards innovation/ improvement of existing products, services and processes and should have the potential to generate employment/ create wealth. An entity formed by splitting up or reconstruction of an existing business shall not be considered a "Startup"

How to register a Startup:

If you have a potential Technology product plan, and you want to set up it as Kerala based Startup, here are the steps you need to follow.

Step 1 - Company Registration

From being an individual or a team, be a registered entity by setting up a company under the Ministry of Corporate Affairs (MCA) as Private Limited (Best Suitable for Startups) or Limited Liability Partnership.  When you register your company, don't forget to choose Ernakulam as RoC. It's mandatory to register in Kerala to avail all benefits from the Kerala Startup Mission.

Usually registration is done by Chartered Accountants and Consulting firms. You can register through any preferred CA or Consultants. KSUM has empanelled 5 firms to help startups in the process.

Step 2 - Startup India Recognition

After the successful company registration, you will receive a Company Identification Number (CIN) from MCA. To be a recognized Startup India you need to get a Recognition certificate from Startup India by the Department for Promotion of Industry and Internal Trade (DPIIT).

The recognition can be done through online

Step 3 - Kerala Startup Mission Unique ID

Now you are a registered startup in India. You can avail all the benefits of being a Startup in India. Apart from that, Kerala Startup Mission also provides many exclusive Programs and Schemes for Startups from Kerala.  To be eligible for that, you have to obtain a Unique ID (UID) from KSUM.

Application portal - startups.startupmission.in

Benefits of KSUM Unique ID - https://bit.ly/ksumuidbenefits

Important points

• There is no fees/charges for KSUM Unique ID
• It may take 2-3 working days
• After successful registration you will receive a certificate  digital certificate
• You nee to create a login for applying the ID
• Detailed step by step guide available here
• if you are facing any difficulty send email to info@startupmission.in with screenshots.

Register with MSME

The Ministry of Micro, Small & Medium Enterprises (MSME) has announced many schemes including funding schemes to support startups and MSME. To avail the benefits the company has to be registered under MSME department.

Registration link - https://udyamregistration.gov.in/

Single Window Interface for Fast & Transparent Clearances

The Government of Kerala has developed a single window portal for getting clearances for starting a new venture in the state. KSWIFT is a web based online facility for entrepreneurs desirous of setting up and running enterprises in the State,

Schemes

 1. Innovation Grant

About the scheme:

The Govt. of Kerala has introduced the Innovation Grant scheme to provide financial assistance to startups and entrepreneurs to help them convert their innovative ideas into full-fledged ventures. This scheme is implemented through Kerala Startup Mission, which is the nodal agency of Govt. of Kerala for startup-related activities and schemes.

Innovation grants are not prize money for having an idea. The purpose of the grant is to help  innovators develop the prototype or product and set up startups.

Benefits of the scheme-

• Idea grant- Upto 2 lakhs
• Productization Grant -Upto 7 lakhs
• Scaleup Grant- Upto 12 lakhs

2. R&D Grant

The scheme for supporting the hardware startups with a significant R&D component up to INR 30 Lakh.

3. Fund of Funds

KSUM is partnering with SEBI accredited Alternative Investment Funds (AIFs) to invest in the startups from Kerala. The state government will act as a limiter partner for the funds.

Eligibility Criteria:
The fund should be registered as Category 1 or Category II Alternative Investment Fund under SEBI AIF Regulations. Other criteria as and when put forward during the Tendering process for selection.

4. Soft Loan Scheme for Women entrepreneurs:

Kerala Startup Mission (KSUM) supports women startups with a soft loan scheme for an amount limited to Rs.15 Lakhs as working capital for implementing works and projects received from the Govt. departments and the Public Sector Undertakings in Kerala. The amount of loan is limited to 80% of the Purchase order and disbursement is as an advance against the milestone payment agreed by the client. The soft loan will have 6% simple interest and must be repaid in 1 year or on completion of the project with full settlement, whichever is earlier. The repayment period of the loan is 1 year or completion of the project with full settlement, whichever is earlier. The Startup shall ensure the proper delivery of the product service specified in the purchase order and the disbursement from the second instalment will be based on satisfactory completion of a milestone as certified by the client. The maximum amount of loan outstanding will be Rs. 15 lakhs.

5. Startup Communities Development and Partnership Programmes

KSUM has invited proposals from startup communities who have been engaged in promoting entrepreneurs, pursuing startup evangelization activities and value adding to the startup fraternity by any means.

The new community programme aims for identifying and pooling in more potential startups for KSUM, who are outside the radar of KSUM and to identify value-adding stakeholders to this startup ecosystem. It is primarily an out bounding activity.

6. Patent Reimbursement for Startup and Student Entrepreneurs

Kerala Government, through Kerala Startup Mission has launched a scheme called Patent Support Scheme, where support is provided for startups and student entrepreneurs who are able to secure a patent.

Patent Support System intends to support startup entrepreneurs and student entrepreneurs by reimbursing the patent cost including consultation fee, subject to a limit of Rs. 2 lakh per Indian patent. For foreign patents on a single subject matter, up to Rs. 10 lakh would be reimbursed.

7. Innovation and Entrepreneurship Development Centres (IEDC)

The Innovation and Entrepreneurship Development Centres (IEDC) are platforms set up in Engineering, Management, Arts & Science Colleges and Polytechnics with an aim to provide students an opportunity to experiment and innovate. IEDCs works as the first launch pad for a student’s entrepreneurial journey and provide them with access to cutting edge technology, world class infrastructure, high quality mentorship, early risk capital and global exposure.

Innovation and Entrepreneurship Development Centre (IEDC) is a flagship initiative of Kerala Startup Mission to promote innovation and entrepreneurship among the student and academic fraternity in the educational institutions in the State of Kerala and is considered as an umbrella programme that would play an instrumental role in fostering innovation culture in Academic institutions. The concept of Innovation and Entrepreneurship Development Centre (IEDC) is formulated to promote innovation and entrepreneurial culture in educational institutions and to develop institutional mechanisms to foster techno-entrepreneurship for generation of wealth and employment. The IEDCs are established in academic institutions across Kerala having requisite expertise and infrastructure.

8. Government as a marketplace

Kerala has made major strides for facilitating the growth of B2G startups in the state. The Government of Kerala has introduced the first-of-its-kind initiative of providing direct procurement options to Government departments from startups, the first time by any State Government in India. This sprouts from the Kerala State IT Policy 2017 that formalised public procurement from startups.

Kerala is one of the proactive states who have successfully inducted and implemented the Startup direct procurement for Government departments and organizations. This has become rated as one of the best practices in the States Startup Ranking by DPIIT under Public Procurement. Kerala Government has become one of the major early adopters of startup products.

The innovative startup products adopted by the government has encouraged innovation within the government and this has in fact enthused more departments to engage with startups. The successful engagement with startups has created more departments to explore engaging innovative products from the startups.

The Government of Kerala has issued multiple Government Orders (GO) for establishing the scheme and the same has been successfully implemented.

1. Relaxation for Startups in Participating in Public Tenders
   • Relaxation in Tender Fee and Earnest Money Deposit
   • Relaxation in Prior Experience and Turnover

2. Direct Procurement
   • Government of Kerala has sanctioned permission to Government Departments to purchase product from Startups registered with Kerala Startup Mission directly upto Rs 20 Lakhs exclusive of GST without any tendering process subject to approval by the technical committee constituted as per the GO (Ms) No 19/2017/ITD dt 04.08.2017.

3. Limited Tender Process
   • Government of Kerala has sanctioned permission for Government Departments, Boards, PSUs, Corporations etc to procure IT products upto a value of Rs 100 Lakhs through a limited tender process i.e limited to startups registered under Kerala Startup Mission.

9. International Exchange program

Kerala Startup Mission as part of the Youth Entrepreneurship Development Program encourages startups to participate in various startup events happening across the globe. KSUM supports the startup by offering delegated visits to Startups and also offers travel assistance as reimbursement for startups attending similar events.

10. Exposure Program for Startups

First Travel:
90% support for one member from the startup. This includes to and fro travel and visa charges. If two founders are travelling, 50% of travel and visa support.

Second Travel:
70% travel support for one member from the startup. This includes to and fro travel and visa charges. If two founders are travelling 40% of travel and visa support each.

Third Travel:
50% travel support for one member from the startup. This includes to and fro travel and visa charges. If two founders are travelling 30% of travel and visa support

Fourth Travel & Further Travels
25% travel support for one member from the startup. This includes to and fro travel and visa charges.

The startups who have availed the first and second travel in the first year, will only be eligible for the third and fourth travel support from the second year onwards.

11. KWISE

Kerala ranks first among the Indian States in terms of the Human Development Index (HDI) and Gender Development Index (GDI). The rapid expansion of higher education in the State has emerged Kerala as the most literate state in the country, with a female literacy rate of 95.2%. The size & nature of activities taken up by the Kerala women in the entrepreneurial sector are low risk-taking and in SMEs.

Focussing Women in entrepreneurship,Kerala Startup Mission has been building a collaborative ecosystem in the state.KSUM has been fostering & promoting women entrepreneurs in the technology domain by providing technical, financial,business connect and intervening policies for the enterprise to start, scale and accelerate in Kerala

12. Seed fund

Govt. of Kerala has introduced the Seed Support scheme to provide financial assistance to startups to foster the formation and development of innovative, technology-based business enterprises that will stimulate the economy of the State of Kerala through venture creations, increased employment and leveraging of private investment. This scheme is implemented through Kerala Startup Mission, which is the nodal agency of Govt. of Kerala for startup related activities and schemes.

Benefits of the scheme-

• Seed Fund of Rs.15 Lakhs at a subsidised interest rate of 6% per annum.
• Moratorium 12 months
• Repayment in 24 EMIs for loans up to Rs.5 Lakhs and 36 EMIs for loans above Rs.5 Lakhs

13. Women Technology commercialisation

Technology License / Transfer support for Startups will be a maximum of Rs. 10 Lakhs. However, the support is limited to 90% of the technology fee to be paid to the Research entity.