Companies

Kerala startup ecosystem post high growth: Report

Our Bureau Kochi | Updated on October 05, 2019 Published on October 05, 2019

(File photo)

Around 75 per cent of the Kerala-based startups are product-driven companies and 25 per cent of startups are service-driven.

Kerala has emerged as one of country’s top startup destinations marking an impressive compound annual growth of 17 per cent since 2012, taking the total number of ventures based out of the state to 2,200 and displaying high competence in netting funds, says a reportby digital media platform Inc 42 in association with TiE Kerala.

In a single year since 2018 alone, the number of startups set up in Kerala marked a steep increase of 35 per cent, says the report, unveiled at the valedictory function of the TiECon Kerala 2019, at Kochi on Saturday.

Subramanian Swamy, MP, released the report titled ‘Kerala Startup Ecosystem 2019’ in the presence of Saji Gopinath, CEO, Kerala Startup Mission (KSUM).

Kerala-based startups kept up their competence in getting funds by raising $ 89 million till date, and compared to 2018, till September this year startups clocked an 18 per cent uptick in securing funds. In 2019, startups netted $ 44 million funding spread across 13 deals. As many as 47 startups have raised funds from outside and 13 startups received funds in 2019.

Also read: KSUM, Unity Technologies launch Centre of Excellence for AR/VR, gaming

KSUM has designed and executed a set of programmes and schemes as per the revised Kerala Startup Policy (Technology Innovation and Entrepreneurship Policy) to identify and support technology startups in the State. In the last six months alone, KSUM incubated and funded over 200 startups, said M Sivasankar, Secretary, Electronics and IT, Government of Kerala.

To ensure investment opportunities, KSUM has come out with an innovative Fund of Fund scheme to invest in Alternative Investment Funds (AIFs). A combined corpus in excess of Rs 1,000 crore of investment capital has been made available for startups through this scheme by committing less than 10 percent of this amount into various AIFs, Saji Gopinath, CEO, KSUM said..

Of the 2,200 startups based in Kerala, as much as 13 per cent were registered in the first three quarters of 2019. “In 2019, the Indian startup ecosystem recorded 553 funding deals, which together crossed the $ 9 billion funding mark. Interestingly, it is Kerala which has emerged as one of the top startup destinations of the country, says the report.

Around 75 per cent of the Kerala-based startups are product-driven companies and 25 per cent of startups are service-driven. Sector-wise, 28 per cent of startups offer IT and consulting services followed by health tech and edtech with 8 per cent and 7 per cent respectively, the report says.

Published on October 05, 2019
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