Kerala, a beautiful southern state of India, has become an upcoming hub for startups around the globe. As per the recently published 2024 Global Startup Ecosystem Report (GSER), the startup ecosystem of Kerala got a whopping valuation of $1.7 billion in only 18 months, much higher than the average rate in the entire world in the same period. We are disscusing about Kerala Startup Ecosystem Achieves $1.7 Billion Valuation, Surpassing Global Average.
We are disscusing about Kerala Startup Ecosystem Achieves $1.7 Billion Valuation, Surpassing Global Average:
Vision and Mission of Kerala Startup Ecosystem
Over the last few years, the Kerala startup ecosystem has grown upward, primarily fueled by the need to foster sustainable technology startups. The goals of the Kerala startup ecosystem are to become the top startup hub in India and rank among the top five in the world.
The objectives of the Kerala startup ecosystem involve the development of technology entrepreneurship based in the state, the cultivation of an environment that promotes innovation, investments in sustainable, scalable startups, and collaboration between academia, industries, research institutions, and startups.
Five Times the Global Average
Though the global average growth rate was 46 percent during the review period, the startup ecosystem in Kerala grew by a remarkable 254 percent compounded annually from July 1, 2021, to December 31, 2023. This exponential growth signifies the state’s encouragement of innovation, entrepreneurship, and technological development. According to the GSER-2024, Kerala is the leading startup ecosystem in India. Other Indian states on the list are Telangana, Tamil Nadu, and Karnataka.
Ecosystem Performance and Diverse Sectors
In the ‘Affordable Talent’ metrics, which look at the capacity to hire technical talent, Kerala was ranked fourth amongst the startup ecosystems in Asia. It also managed to clinch a place in the top 30 for overall ecosystem performance. Today, young Kerala startups are venturing into new areas other than the stereotypical software and information technology industries. Industries such as the food industry, clean water, affordable healthcare, space industry, circular economy, and the creator economy are emerging.
Government Support Behind Kerala’s Success
Government support for startups is incomparable in the Kerala region. Kerala Startup Mission (KSUM) is a premier nodal agency for entrepreneurship and incubation, which was set up in 2006 in Kerala. The Kerala Startup Mission, or KSUM, is one of the primary agencies entrusted with promoting entrepreneurship and incubation in the state. It also has a rich startup culture backed by different government programs to foster innovation.
Deep Tech Focus
Kerala focuses on deep tech, committing resources to talent and development for innovative startups in emerging technologies. The state wants to grow its startup ecosystem to the world average in the next five years. Kerala invests heavily in deep tech verticals, including AI, EVs, and biotechnology. The state wants to incubate the next generation of revolutionary startups in innovative fields.
Funding and Exports
Kerala’s startups secured $33.2 million (Rs 227 crore) in the financial year 2023, which will be 15% more than in the financial year 2022. Software exports reached $2.3 million in 2022-23, with Kerala targeting to become the IT hub of India, achieve 10% of the total IT exports of India, and generate five lakh new employment opportunities.
Conclusion
Kerala’s vibrant startup scene, innovation, affordable costs, and active government backing are set to revolutionize the global market. As it continues to support emerging innovative startups, it stands as a perfect example of the inventive and unyielding spirit.
