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

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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:

• Interest Rate: 6% simple interest.

• Eligibility: Must be a Kerala-registered startup with majority ownership by women.

• 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

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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:

• Eligibility: Funds registered under SEBI's AIF Category I or II.

• Benefits: Startups gain access to equity investments during their scaling stage.

• 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

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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:

• Idea Grant: Up to ₹3 lakhs for early-stage prototypes.

• Student Innovator Grant: Up to ₹2 lakhs for student projects.

• Productization Grant: Up to ₹7 lakhs for converting prototypes into products.

• Women/Transgender Grant: Additional ₹12 lakhs for women/transgender entrepreneurs.

• Market Acceleration Grant: Up to ₹10 lakhs to boost revenue.

• 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

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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:

• Eligibility: Startups must be based in Kerala, registered as LLP or Pvt. Ltd., and led by women.

• 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

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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:

• Moratorium Period: 12 months before repayment begins.

• Repayment: Up to 36 months in installments.

• 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

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What it is:

This scheme offers soft loans for women entrepreneurs to execute purchase orders from government departments or public sector undertakings.

Key Features:

• Loan Amount: Up to ₹15 lakhs (80% of the purchase order value).

• Interest Rate: 6%.

• 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

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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:

• At least 50% of the grant must be used for hardware development.

• Marketing expenses are capped at 20%.

• 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

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What it is:

This scheme reimburses patent costs, including consultation fees, for startups and student entrepreneurs who successfully secure patents.

Key Features:

• Reimbursement Amount: ₹2 lakhs per Indian patent and ₹10 lakhs per international patent.

• Eligible Expenses: Filing, claims preparation, fast-tracking fees, etc.

• 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.