The approach to startups and business in Kerala has seen a significant transformation in recent years. No longer confined to family-run ventures, entrepreneurship is now viewed as a dynamic career path, even by students. With active support from government-led initiatives and growing financial and mentorship infrastructure, Kerala’s startup ecosystem is evolving rapidly.
“Entrepreneurship, once seen as a fallback option, is now a viable and attractive career—particularly among the youth,” says Kerala Startup Mission (KSUM) CEO Anoop Ambika. According to him, the ecosystem—comprising government bodies, investors, educational institutions, and industry players—has become increasingly supportive of innovators. Over the past eight to nine years, KSUM has assisted over 6,300 startups, drawing nearly $1 billion in investment into the state.
Ambika describes a startup as a venture that significantly improves a product, process, or business model to enhance customer experience. “If you can deliver this improvement at scale while creating substantial value, you’re running a startup,” he explains.
Startups can emerge through various approaches—by developing new products that meet critical needs, like COVID-19 vaccines from Moderna, Bharat Biotech, and Serum Institute; or by improving customer experiences, as demonstrated by Swiggy and BookMyShow. Some focus on refining existing processes, such as using tech to preserve agricultural produce and improve distribution.
KSUM offers a robust support system to nurture early-stage innovators:
1) Infrastructure: Through LEAP Co-working Spaces in 15 locations—including Thiruvananthapuram, Kochi, and Kozhikode—startups gain access to affordable workspace. Additionally, the Super Fab Lab (the first outside the US, built with MIT collaboration) and Mini Fab Labs provide cutting-edge prototyping facilities. “If you’re a maker wanting to prototype a design, Fab Labs offer state-of-the-art equipment to make it real,” says Ambika.
2) Incubation: Kerala has 10 government-recognised incubators under the Department of Science & Technology and the Department of Biotechnology. Notable ones include Maker Village in Kalamassery, India’s first hardware incubator, and TrustPark, which focuses on semiconductor and electronics startups.
3) Sector-Specific Hubs: A new tech hub in Thiruvananthapuram will focus on agriculture, digital media, renewable energy, health & life sciences, and space tech. “We aim to integrate emerging technologies like AI, data analytics, cloud computing, and genome computing into these sectors,” says Ambika.
KSUM provides early-stage grants ranging from ₹3 lakh to ₹15 lakh—non-repayable and equity-free. Startups also gain access to funding through Startup India seed funds, angel networks like Ignite and the Kerala Angel Network (which invested ₹6–10 crore last year), and venture capital facilitated by KSIDC and KFC. Low-interest loans from ₹2 crore to ₹10 crore are also available, alongside support from the government’s Fund of Funds model.
One standout initiative is Government as a Marketplace, allowing departments to directly procure products from startups—up to ₹50 lakh, and via limited tenders for up to ₹3 crore.
The Corporate Connect program links startups with larger firms to address industry-specific challenges. “If a company has a problem, it can pitch it to us, and we find the right startup with a solution. This reverse pitch model is already producing results,” explains Ambika.
KSUM also regularly leads delegations to global tech events such as GITEX, Mobile World Congress, and CES, giving Kerala-based startups exposure on the world stage. Domestically, they participate in trade shows to showcase innovation. The mission also maintains a strong mentorship network to guide startups in areas like go-to-market strategies, investment, infrastructure, and customer development.
Despite these advancements, fear of failure still discourages some from venturing into entrepreneurship. “I wouldn’t call it failure—I’d call it moving on. It’s part of the journey,” says Ambika. He encourages entrepreneurs to think globally: “With decentralised information and the right environment for creativity, Kerala can build products that stand shoulder to shoulder with the best in the world.”
“We have quality education, skilled manpower, and a supportive ecosystem. If we channel these effectively, Kerala can emerge as a global innovation hub in the coming decade,” Ambika concludes.
