Kerala Startup Mission (KSUM) offers a wide range of funding schemes designed to empower entrepreneurs in Kerala. Whether you're a woman entrepreneur, a student innovator, or a tech startup founder, there's likely a scheme that can support your journey. In this guide, we’ll break down all eight schemes in simple, easy-to-understand terms.
1. Soft Loan Scheme for Women Entrepreneurs
What it is:
A soft loan is a loan given at a low-interest rate. This scheme helps women-led startups execute projects for government departments or public sector companies. The loan amount can go up to ₹15 lakhs, which is 80% of the purchase order value. It must be repaid within a year or when the project is completed.
Key Features:
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Interest Rate: 6% simple interest.
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Eligibility: Must be a Kerala-registered startup with majority ownership by women.
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Disbursement: Funds are released in phases, based on project milestones.
Why it matters:
This scheme provides financial relief for women entrepreneurs handling large government projects, ensuring smooth execution without cash flow worries.
2. Fund of Funds
What it is:
KSUM partners with SEBI-accredited funds (known as Alternative Investment Funds or AIFs) to invest in Kerala-based startups. The government acts as a limited partner, contributing funds to encourage private investors to participate.
Key Features:
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Eligibility: Funds registered under SEBI's AIF Category I or II.
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Benefits: Startups gain access to equity investments during their scaling stage.
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Outcome: Attracts venture capital (VC) funds to Kerala and connects startups to a strong network of investors.
Why it matters:
Scaling startups need significant funding, and this scheme bridges the gap by connecting them to VC funds and Kerala’s startup ecosystem.
3. Innovation Grant
What it is:
A financial aid for startups to transform ideas into market-ready products. This scheme supports everything from idea development to scaling.
Types of Grants:
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Idea Grant: Up to ₹3 lakhs for early-stage prototypes.
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Student Innovator Grant: Up to ₹2 lakhs for student projects.
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Productization Grant: Up to ₹7 lakhs for converting prototypes into products.
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Women/Transgender Grant: Additional ₹12 lakhs for women/transgender entrepreneurs.
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Market Acceleration Grant: Up to ₹10 lakhs to boost revenue.
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Scale-Up Grant: Up to ₹15 lakhs for expansion.
Why it matters:
From students to scaling businesses, this scheme ensures startups have the resources they need at every stage.
4. Seed Fund for Women Entrepreneurs
What it is:
This is a seed fund (early-stage funding) designed to support women-led startups working on innovative technologies. The fund of ₹15 lakhs helps startups develop and market their products.
Key Features:
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Eligibility: Startups must be based in Kerala, registered as LLP or Pvt. Ltd., and led by women.
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Impact: Bridges the funding gap between seed funds and venture capital investments.
Why it matters:
This scheme provides women entrepreneurs with the initial push to develop their businesses and attract larger investments.
5. Seed Fund
What it is:
General early-stage funding for startups to develop products, acquire customers, and scale. This scheme offers a ₹15 lakh fund at a subsidized interest rate of 6%.
Key Features:
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Moratorium Period: 12 months before repayment begins.
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Repayment: Up to 36 months in installments.
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Eligibility: Open to innovative, tech-based startups in Kerala.
Why it matters:
Startups often struggle to secure funds for product development and marketing. This scheme addresses that need.
6. Soft Loan Against Purchase Orders (POs) for Women Entrepreneurs
What it is:
This scheme offers soft loans for women entrepreneurs to execute purchase orders from government departments or public sector undertakings.
Key Features:
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Loan Amount: Up to ₹15 lakhs (80% of the purchase order value).
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Interest Rate: 6%.
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Eligibility: Startups must be women-led and registered in Kerala.
Why it matters:
Helps women entrepreneurs fulfill government orders without financial hurdles, ensuring timely delivery.
7. R&D Grant
What it is:
This grant supports hardware startups with significant research and development (R&D) needs. Startups can receive up to ₹30 lakhs.
Key Features:
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At least 50% of the grant must be used for hardware development.
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Marketing expenses are capped at 20%.
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Applicants must be incubated in an approved state incubator.
Why it matters:
R&D-intensive startups often face high costs. This grant ensures they can focus on innovation without financial strain.
8. Patent Reimbursement
What it is:
This scheme reimburses patent costs, including consultation fees, for startups and student entrepreneurs who successfully secure patents.
Key Features:
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Reimbursement Amount: ₹2 lakhs per Indian patent and ₹10 lakhs per international patent.
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Eligible Expenses: Filing, claims preparation, fast-tracking fees, etc.
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Process: Funds are reimbursed in three stages: filing, prosecution, and award.
Why it matters:
Securing patents is expensive but crucial for protecting intellectual property. This scheme encourages startups to innovate confidently.
Conclusion
Kerala Startup Mission offers a robust set of funding schemes catering to diverse entrepreneurial needs, from early-stage ideas to scaling businesses and securing patents. Each scheme is designed with specific goals, ensuring that startups at every stage have access to the resources they need.
Whether you're a woman entrepreneur, a student innovator, or a tech founder, these schemes can help turn your vision into reality. To apply, visit the KSUM website and explore how you can kickstart your journey.