Kerala ecosystem value creation 5 times more than global average: GSER-2024

The state ranks 4th among Asia’s ecosystems in ‘Affordable Talent’

Trivandrum / June 11, 2024

Thiruvananthapuram, June 11: Kerala created an ecosystem valued at $1.7 billion in 18 months till end-2023, which stands five times more than the global average during the period, according to the 2024 Global Startup Ecosystem Report (GSER).

 

While the worldwide average growth was 46 per cent, the state’s startup ecosystem clocked 254 per cent compound annual growth from July 1, 2021 to December 31, 2023 compared to the corresponding period ending in 2021, says the report which was launched at London Tech Weekby US-based Startup Genome and the Global Entrepreneurship Network.

 

Ecosystem Value is a measure of economic impact, calculated as the value of exits and startup valuations.

 

Equally impressive was Kerala’s ranking of fourth among Asia’s ecosystems in ‘Affordable Talent’ that measures the ability to hire tech talent, while the state is on the top-30 list when it comes to the ‘Performance’ of startup ecosystems across the continent, according to the GSER.

Further, Kerala emerged among the top 20 Asia ecosystems in the ‘Bang for Buck’ category that measures the amount of runway tech startups acquire on an average from a venture capital round. Also, the state is on the Top 35 ecosystems of the continent in ‘Knowledge’ that measures innovation through research and patent activity and ‘Funding’ which measures innovation through early-stage funding and investor’s activity,

The GSER-2024 is powered by the world’s most quality-controlled dataset on startup ecosystems. It analyzes data from over 4.5 million companies across 300-plus entrepreneurial innovation ecosystems, providing new insights and knowledge about startup trends around the world. It provides ranking up to the Top 40 global ecosystems, emerging ecosystems and an expanded regional ranking.

While Kerala tops India’s ecosystems as per GSER-2024, the only other states in the country to make it to the report are Telangana, Tamil Nadu and Karnataka.

Kerala Chief Minister Shri Pinarayi Vijayan said the state’s building on its dynamic startup ecosystem has been driving the forefront of transformative innovations. “We are now pivoting towards Deep Tech, investing in talent and infrastructure to nurture groundbreaking startups in advanced technologies,” he pointed out.

Startups in Kerala raised $33.2 million (Rs 227 crore) in 2023, marking a 15 per cent increase from the previous year. What’s more, software exports reached $2.3 million in 2022-23, prompting Kerala to aim for a 10 per cent share in the country’s IT exports, besides five lakh new jobs.

KSUM Chief Executive Officer Anoop Ambika, while noting that Kerala’s performance in the IT Startup Ecosystem has been steadily high in the past five years, said no other state in the country enjoys similar governmental support. “Our mission is to take Kerala’s startup growth to the world average in the next five years,” he added.

Startup Genome Founder-President Marc Penzel said the San Francisco-headquartered innovation ecosystem development organization was “eager to highlight the remarkable growth” in the Kerala startup community. “We extend our gratitude to KSUM for their pivotal role in continuing to shape the inspiring rise of Kerala's thriving startup ecosystem,” he added.

Kerala's industrial policy targets transformation into an Industry 4.0-ready ecosystem by 2028, focusing on sectors such as artificial intelligence, electric vehicles and biotechnology.

GSER-2024 makes a mention of Kerala's Digital University introducing in January this year the Kairali AI Chip, the state's first AI processor, while a school in Thiruvananthapuram launched India's first generative AI robot teacher named ‘Iris’ that is capable of teaching multiple subjects in English, Hindi and Malayalam.

As for Life Sciences, Kerala hosts around 20 established medical device manufacturing companies and nearly 60 SMEs, contributing to a fourth of the country’s total production. With a clutch of industry giants, the state's annual turnover from medtech is $890 million (Rs 7,431 crore).

The GSER is driven by a consortium of representatives from 40-plus countries. It looks at the current state of startup activity and related investment, providing insights and guidance to public and private leaders on how to foster thriving startup communities — the Number-1 engine of job creation and economic growth. Contributions from expert thought leaders and local key players further enrich the report's extensive, evidence-based findings, which are the product of over a decade of Startup Genome's independent research and policy work.

Startup Genome has worked with more than 160 economic and innovation ministries and public/private agencies in over 55 countries, catalysing startup success and ecosystem growth while ensuring that all cities and countries capture their fair share of the new economy.

KSUM, which was established in 2006 under the Kerala government, works for entrepreneurship development and incubation activities in the state.

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