Kerala Plans Forth Second Round of Funding for Startups
As per the latest study by Nasscom in their India Startup Report 2014, India stands third in the world, after US and UK, in terms of largest startup ecosystem and in fact the fastest growing one. The same attitude is reflected in the Kerala environment if the startup community here is to be analysed, especially in the IT Sector. The ecosystem here is rapidly evolving, driven by extremely young, diverse and inclusive entrepreneurial landscape. An additional driving force is a four-fold increase in access to capital through VCs, angel investment and seed funding for the Indian entrepreneurs, more so importantly after the setting up of various incubators across the state.
All these initiatives of various incubators received a boost recently when the State Govt. announced to draw up a scheme for start-ups looking for a second round of funding once they graduate from incubation centers. The announcement was made by Hon. Chief Minster of Kerala, Shri Oommen Chandy at the Leaders’ meet hosted by GTech (Group of Technology Companies), an industry body of IT companies in Kerala.
The government is considering allocating a marketing corpus of Rs 5 crore to support Small and Medium Enterprises (SMEs) for sustainable business development activities. Such measures would go a long way in being part of the government’s initiative to promote an entrepreneurial-friendly ecosystem in the state.
GTech has sought an outlay of at least Rs 1,200 crore for IT industry in the forthcoming state budget, against around Rs 300 crore in the previous one.
“The IT industry provides huge employment opportunities for the youth of the state. Hence, the ecosystem needs to be scaled up and e-governance strengthened to widen the industrial base. It is important that the government allocates a higher amount for IT in the forthcoming state budget. The industry would be disappointed if the outlay is less than 2% of the total budget. This need has been conveyed to the chief minister and we are hopeful of getting a positive response”, said Mr V K Mathews, Chairman, GTech, at the event held in Technopark on Thursday.
Almost 80 per cent of IT companies in Kerala belong to the SME sector, collectively employing over 25,000 people. On a national front, rapid growth in startup will create an employment for around 250,000 people by 2020 as against the current 75,000.
GTech has been contributing, through various initiatives, to the overall welfare of entrepreneurs and professionals in the industry, enabling an ecosystem best suited for transformative and inclusive growth. Early last month, a MoU was signed between Sunil Kaushal, Chairman, India-New Zealand Business Council and Anoop P Ambika, Secretary, GTech to promote enhanced trade and exchange between Kerala and Auckland in the coming two years.
Image Courtesy : startupafricafund