Kerala’s Tech Ecosystem By the Numbers
India
Kerala
MEMBERS:
Kerala Startup Mission
"Building on Kerala’s dynamic Startup ecosystem that drives the forefront of transformative innovations, we are now pivoting towards Deep Tech, investing in talent and infrastructure to nurture groundbreaking startups in advanced technologies."
Highlights
Nestled in the lush landscapes of India’s southwestern coast, Kerala is a dynamic player in the country’s entrepreneurial landscape. The state consists of emerging startup hubs like Kochi, accounting for 87% of the total 2023 funds raised, as well as capital Thiruvananthapuram (Trivandrum), both with high potential in IT development due to quality human resources and infrastructure.
Startups in Kerala raised $33.2 million in 2023, a 15% increase from the previous year, and seed-stage funding reached $26.2 million, a 40% increase. With software exports reaching $2.3 million in 2022-23, Kerala aims for a 10% share in India's IT exports, and 500,000 new jobs. Its upcoming Technology Innovation Zone is set to become Asia's largest cutting-edge digital solutions campus.
The Kerala Startup Mission (KSUM) is Kerala’s primary agency to cultivate a vibrant technology startup ecosystem in the state. KSUM plans to establish a $180 million emerging technology hub at Technocity, Trivandrum, to transform Kerala into a Deep Tech hub. The fifth edition of Kerala Startup Mission’s flagship event, Huddle Global 2023, made significant impact by bringing together over 3,000 startups and 75 investors, resulting in 42 pitches, investment decisions totaling $20 million, and over 200 prospective followup discussions. The 2024 edition of the event is scheduled to take place this November in Kovalam.
In April 2023, PM Modi laid the foundation for India's first Digital Science Park in Trivandrum, a $181 million multidisciplinary hub backed by $24 million from Kerala's government and industry partnerships with firms like ARM and NVIDIA.
Ecosystem by the Numbers
NUMBER OF UNICORNS
(H2 2021 - 2023)
Sub-Sector Strengths
Advanced Manufacturing & Robotics
Kerala's industrial policy targets transformation into an Industry 4.0-ready ecosystem by 2028, focusing on sectors like AI, EVs, and biotechnology. By October 2023, Kochi-based Sastra Robotics received export orders for nearly 160 robots with advanced AI capabilities from clients in the U.K. and the U.S. Thrissur-based Inker Robotics raised $1.2 million in a March 2023 seed round to enhance its robotics and emerging tech training platform and drive robotic literacy at the grassroots level.
AI, Big Data & Analytics
In January 2024, Kerala's Digital University introduced the Kairali AI Chip, the state's first AI processor. In 2024, a school in Trivandrum launched Iris, India's first generative AI robot teacher, capable of teaching multiple subjects in English, Hindi, and Malayalam,. In January 2024, Generative AI platform Wizr AI secured $500,000 in seed funding. India’s first international generative AI conclave will take place in Kochi in July 2024.
Life Sciences
Kerala hosts around 20 established medical device manufacturing companies and nearly 60 SMEs, contributing 20-25% of India's total production. With industry giants like Terumo Penpol, Dentcare Dental Lab, and Agappe Diagnostics based here, the state's annual turnover from medtech reaches $890 million. In March 2023, the Kerala Genome Data Centre was launched with a $60 million investment. KSUM, in collaboration with Kerala Medical Technology Consortium, will inaugurate Entrepreneurship Development Centers in medical colleges across the state.
Reasons to Move Your Startup to Kerala
Government Support
Kerala Startup Mission equity investments crossed $12.1 million, including a $5.5 million investment into 19 startups, and a $1.35 million seed fund supporting 151 startups. The 2024-25 Kerala Budget allocates $10.9 million to boost the ecosystem, $3.6 million for the Fund of Funds startup investment scheme, and $1.2 million to expand coworking centers. Kerala will introduce “Startup Pods” working spaces in tourist destinations across the state offering an inspiring work environment for global innovators.
Tech Talent
Kerala has the highest percentage of youth proficient in coding. It is the most preferred work destination in India and ranked second in employability among youth and BE/BTech graduates. Women constitute up to 45% of the tech workforce in Kerala's tech parks, exceeding the national average of 29%. In 2023 KSUM launched the Top 100 Series challenge to discover top talents in coding and product development.
Digital Adoption
Kerala was the first Indian state to declare the internet as a basic right. In June 2023, the Kerala Fibre Optic Network launched, a $194 million venture providing broadband connectivity to government institutions and two million families below poverty line. In September 2023, the Kerala High Court mandated the adoption of technology in courts. In January 2024, Kerala launched K-SMART, India’s first state-level initiative for comprehensive public service digitization.
Selected Startup Organizations
Startup Genome Members
Key Ecosystem Players
Dr. Rathan.U. Kelkar IAS
Dr. Rathan Kelkar IAS is a seasoned civil servant with over 20 years of experience, committed to societal welfare. He excels in policy formulation, program implementation, and leveraging technology for effective governance.
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