Karnataka To Attract $6.2 Bn In Tech Investments From US, UK, And Europe: Priyank Kharge

Karnataka’s information technology and biotechnology (IT/BT) and rural development and panchayati raj (RDPR) minister Priyank Kharge expects the state to attract investment of $6.2 Bn in technology sectors such as biotechnology, AI, semiconductors, AVGC (animation, visual effects, gaming, and comics), and healthtech from the US and Europe. 

Following the visit of a delegation of the IT/BT department to the US, the UK, and Europe to attract investments, Kharge said that the deals with the companies, institutions in these places are at various stages, ranging from signing a letter of intent to proposals pending before the State High-Level Clearance Committee (SHLCC).

Responding to Inc42’s query on the materialisation of these deals, the minister said, “We have set a deadline of 180 days for the key conversions.”

During its trip, the delegation held meetings with companies like SAP Labs, Bloom Energy, Ambient Photonics, Arm Holdings, and Waters Corporation. Besides, the members also met Vinod Dham, the founder of IndoUS Venture Partners, which has invested in Indian startups such as Snapdeal and Myntra in the past.

According to a statement issued by the state’s IT/BT department, the delegation also had discussions with several German companies that are looking to expand to India in the areas of semiconductors, electronics, and heavy industries.  

The department reached out to these companies for investment in Karnataka and is optimistic about attracting mega investments. The IT/BT department also conducted roadshows across four countries – the UK (in London), France (in Paris and Annecy), Switzerland (in Geneva), and Germany (in Munich).

Besides, while 25 French SMEs have already their presence in India, 50 more are in the queue to expand their presence here, thanks to anchor investors such as Airbus, Capgemini and other companies, said an IT/BT official.

The ministry organised the trip to pitch Karnataka as an investment hub for companies across sectors like electronics, IT, and biotech. Besides, one of the key agendas for the visit was to get more international investors at the Bengaluru Tech Summit 2024, which will be held in November this year.

The delegates also participated in the London Tech Week and the International Animated Film Festival at Annecy.

Kharge told the media that the idea behind such visits is to solidify Karnataka’s position as the number one investment destination and skill development and innovation capital.

Besides, Karnataka is likely to sign a memorandum of understanding with Stanford Biodesign for the latter’s medtech startup mentorship and accelerator programme. The initiative is part of the plans of the biodesign department of Stanford University to expand its ‘Founders Forum’ initiative to Bengaluru. A team from Stanford Biodesign is expected to visit Karnataka next month for this.

Meanwhile, the department of IT/BT said that it is currently working on preparing a ‘Startup Directory’, which will have details of all the startups in the state, their brief profiles and turnover. Besides, it is also working on an online startup platform to connect with VCs.

“The startup portal that will help connect startups and investors will go live within a month,” said Kharge. 

In a previous conversation with Inc42, Kharge said that the Karnataka government is engaging directly with VCs to discuss funding, exits, and more

“We have asked VCs what steps we should take to ensure better collaboration and support for startups. It may require bringing them together on a single platform for assessing ideas or providing mentorship and networking opportunities beyond just funding,” he said, adding that the state would announce a new collaboration framework for startups and VCs within the next few months after the Lok Sabha polls.

Karnataka’s capital Bengaluru is hailed as the Silicon Valley of India, with startups based out of the city dominating funding trends over the years. However, the trend witnessed a change last month, when Delhi NCR took the top spot in terms of funding. Bengaluru-based startups cumulatively raised $115 Mn in May, trailing Mumbai and Delhi NCR.