Kerala Government Extends Financial Support For Startups By Two Years
The Kerala government has announced today that it would be extending financial support for startups in the state by two more years. As a result, Kerala-based startups will now be offered seven years of government backing from the current five years.
The initiative, as per reports, is in line with the Startup India’s definition of startups. As part of the move, the state government has also extended these benefits, including access to subsidised office facilities, to merged, acquired or amalgamated startups.
The increased financial backing is expected to give a much-needed boost to tech-based product development startups currently operating in Kerala.
Commenting on the development, Ashok Kurian Panjikaran, Manager of Kerala Startup Mission (KSUM) said, “Product development companies take longer to build when compared to services companies. Seven years is a reasonable time period. KSUM focuses on developing product-based companies and the extension will suit our requirements.”
Founded in 2006, Kerala Startup Mission is the implementing agency of the Government of Kerala for entrepreneurship development and incubation activities within the state.
As stated by Panjikaran, KSUM currently has around 757 tech startups registered on its platform. According to a recent survey, only a handful of these startups have managed to reach the stage where they can generate profit. The majority, however, is still struggling to grow beyond the development phase.
As a further push to bolster the state’s startup ecosystem, KSUM has revealed plans to launch Youth Entrepreneurship Development Programme (YEDP), in a bid to nurture and mentor future CEOs. The YEDP aims to facilitate technology-led innovation and entrepreneurship among school and college students as well as aspiring entrepreneurs.
To that end, it has already received the first instalment of funding worth $3 Mn (INR 20 Cr). Startups selected for the programme will be getting the funds by next month, sources revealed.
Formerly known as the Technopark Technology Business Incubator (T-TBI), a society under the Travancore Cochin literary, Scientific and charitable Societies Registration Act XII of 1955, KSUM started the incubation programme in the name of Technopark Business Incubation Centre (TBIC) in 2002.
In 2012, Kerala Startup Mission was taken up by Govt. of Kerala and entrusted as the agency for implementing the entrepreneurship development programmes in the state. The state launched its technology startup policy in 2014, with the aim of building an entrepreneurial society in Kerala and minimising brain drain from the state.