Startup investments of Rs 18.4 crore announced at KSUM’s Seeding Kerala
Kochi / March 6, 2023
Kochi, Mar 06: Kerala’s efforts to boost its startup ecosystem received a major boost today when nascent companies in the state received assurances of investments worth Rs 18.4 crore, turning a new chapter in the government’s efforts to create a dynamic early-stage ecosystem.
At the ‘Seeding Kerala’ conclave organized by the Kerala Startup Mission (KSUM), Kozhikode-based Sparks Angel Network announced bringing in investment of Rs 8 crore in the state’s startups, while Kerala Angel Network pegged its figure at Rs 5 crore. Phoenix Angels said it was investing Rs 3.5 crore, and another Rs 1.45 crore was set to come from a pool led by startup founders. GSF Accelerator revealed it would invest Rs 40 lakh in 2018-founded Humblx, a real estate startup based in Kochi.
The fresh inflow comes when the state’s 2022 collective valuation of startups that raised funding stands close to Rs 2,000 crore. A chunk of the investments (41.7%) went to the Saas (software as a service) sector, followed by hardware (20.8%), healthcare, fintech and artificial intelligence (8.3% each) and D2C (4.2%). Data show that investment in the state’s startups plateaued during 2021-22.
Dr Rathan U. Kelkar IAS, Secretary, Electronics & IT Govt. of Kerala, said the government has of late been working with special emphasis on universities along with industries to usher in a new spirit in the state's culture of investing in startups.
“The state is dynamic in its pertinent policies, keen to listen to feedback and looking forward to supporting new-age industries in the startup ecosystem,” he noted at a virtual presence in the inaugural session of the event that deliberated on investments and meeting of stakeholders with government officials and investors.
With more than 40 speakers and 50 leading investors besides 100-plus HNIs, startups, policymakers and corporates, ‘Seeding Kerala’ identified new partners for the government’s Fund of Fund Scheme that provides equity funding to startups.
KSUM CEO Anoop Ambika said Kerala's warranted an “electronics revolution” where startups will channel their energies more towards IT-enabled products as well as services in place of the brick-and-mortar industry. “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,” he said in his welcome address.
Sanjay Mehta of 100X.VC delivered the keynote address. Zoho Corp’s Tony Thomas and Seimens Vice-President Amrutha Venugopal also spoke. KSUM Project Director Karthika Parasuram proposed thanks.
‘Seeding Kerala’ held meetings to curate critical points for developing investment frameworks for Kerala's early-stage startups for the next five years. The sessions provided HNIs an opportunity to network with leading investors, angel networks, peer HNIs and startups across the country. It further explored their investment opportunities that could contribute to the development of the startup ecosystem in Kerala.
The day-long event hosted investment master-classes, immersive talks, fireside chats, panel discussions, short conversations and presentations, besides delivering prize money (by Speciale Investment) for top-order startup pitches. The topics included Identifying High-Potential Startups for Angel Investing, Investing in Technology for Future, Building Profitable Unicorns, Funding, Growth and Exit Cycle in Startup Investment, Bridging Gender Disparity in Startup Funding, How Angels Evaluate Startups and Invest, The Learnings from Angel Investing, and The Risks and Rewards of Startup Equity Investments.
KSUM is the Kerala government’s nodal agency for entrepreneurship development and incubation activities in the state.
