Kerala a Top Destination for Startups
As per a recent report by TiE Kerala, Kerala has emerged out as one of the top destinations for startups in the country. As of now, the state has made an impressive compound annual growth of 17 percent since 2012. This takes the total number of ventures to 2,200, which displays high competence in netting funds, according to the report.
The report further said that in a single year, the number of startups had marked an increase of 35 percent. Startups based out of Kerala have raised USD 89 million dollars till date. Last year in September, the startups clocked an 18 percent uptick in generating funds.
This year in 2019, startups netted USD 44 million funding that is spread across 13 deals. Around 13 startups have received funding. Kerala Startup Mission (KSUM) has come out with an innovation fund scheme to invest in alternative investment funds (AIFs). This scheme allows people to combine a corpus in excess of Rs. 1,000 crore of investment capital, that has been made available to startups through this scheme that commits less than 10 percent of this amount into various AIFs.
Most startups chose Ernakulam and Thiruvananthapuram as their top choices for setting up their headquarters, which was followed by around 59 percent of startups located in these two cities. Around 36 percent of startups are based out of Kochi and Thiruvananthapuram has around 23 percent.
It is really interesting and fascinating to note that Kerala has come up with much stronger and competitive startups. They are really disrupting the traditional way of thinking and are presenting a wonderful example for wannabe startups. If we proceed like this daily, then there might be a time slowly when the economy would improve as a whole. Maybe then, we wouldn’t have to worry a lot with regards to funding opportunities.