Kerala Govt Angel Network, Others Commit INR 18.4 Cr Investment For Startups

Kerala Govt, Other Angel Networks Commit INR 18.4 Cr Investment In Early-Stage Startups

SUMMARY

At the KSUM Seeding Kerala Conclave, Sparks Angel Network, Kerala Angel Network and Phoenix Angels announced investment of INR 8 Cr, INR 5 Cr and INR 4.95 Cr respectively in startups

At the same conclave, GSF Accelerator shared plans of investing INR 40 Lakh in proptech startup Humblx

Rathan U. Kelkar, secretary of Electronics & IT Govt of Kerala, said that the state government has been working along with different universities and industries to boost startup investment

In a bid to promote Kerala’s startup ecosystem, the state government along with other angel networks has made commitments to invest INR 18.4 Cr in Kerala-based early-stage startups.

While attending Seeding Kerala Conclave, an investors and startups meet, organised by Kerala Startup Mission (KSUM), Sparks Angel Network, Kerala Angel Network and Phoenix Angels announced plans of investing INR 8 Cr, INR 5 Cr and INR 4.95 Cr respectively in startups.

Further, at the same conclave, GSF Accelerator shared plans of investing INR 40 Lakh in Kochi-based proptech startup Humblx.

The secretary of Electronics & IT Govt of Kerala, Rathan U. Kelkar said during the event that the state government has been working along with universities and industries to boost startup investments.

“The state (Kerala government) is dynamic in its pertinent policies, keen to listen to feedback and looking forward to supporting new-age industries in the startup ecosystem,” Kelkar added.

KSUM CEO Anoop Ambika said that the state would need an ‘electronics revolution’ where startups will channelise their energies towards IT-enabled products and services, instead of brick and mortar space.

“For the growth of industry, we need investment, infrastructure and intelligence. While we have the last two factors sufficiently, the startup ecosystem in our state requires a decent inflow of funds. Unlocking potential investments can boost our startup ecosystem,” Ambika said.

These developments come at a time when Kerala is now home to over 4K startups, being launched between 2016 and 2021, per Inc42 report.

Since 2015, these startups cumulatively raised $551 Mn funding across 110 funding deals. Notably, fintech and SaaS startups secured the highest VC funding (66% or $364 Mn) in the state.

Further, KSUM is offering special subsidies and investments including Innovation Grant, R&D Grant, and Technology Commercialisation Support for Women to encourage innovation in the state.

KSUM has also been associated with various service partners such as AWS, Cashfree Payments, FreshWorks, HubSpot, RazorPay and Zoho.

Likewise, to promote entrepreneurship, other states such as Delhi, Arunachal Pradesh and Madhya Pradesh formed startup policies last year. Besides, Tamil Nadu and Maharashtra were seen either revamping their policies or focusing on sector-specific ones including the EV policy.