Applications are open for the Kerala Startup Mission Scaleup Grant, a funding initiative designed to support innovative, technology-based startups that have demonstrated strong market validation and are ready to expand their operations. The program provides financial assistance of up to ₹15 lakh to help eligible startups enter new markets, strengthen their commercial capabilities, acquire customers, and accelerate revenue growth.
Funding and Program Benefits
• Grant Amount: Eligible startups may receive financial assistance of up to ₹15 lakh, subject to evaluation and the amount remaining under KSUM’s overall innovation grant framework.
• Purpose of Funding: The grant is intended to support startups in scaling their operations, expanding into larger markets, improving branding and marketing, accelerating business development, acquiring customers, and enhancing existing product features.
• Disbursement Structure: Funding is released in milestone-based tranches. Generally, 50% of the approved amount is released in the first tranche, with the remaining amount provided after a progress review and submission of the required utilization certificate.
• Previous KSUM Grant Recipients: Startups that have previously received an Idea Grant, Productization Grant, or Market Acceleration Grant may apply, but they can only claim the remaining amount available within the applicable cumulative funding limit.
• Previous Scaleup Grant Recipients: Startups that received the former ₹12 lakh Scaleup Grant may be eligible for a top-up grant of up to ₹3 lakh.
Eligibility Requirements
• Market Validation: The startup must have generated at least ₹10 lakh in revenue from its product during the previous six months or raised at least ₹30 lakh through external equity investment.
• Product Requirement: Applicants must own an innovative, technology-based product with demonstrated commercial potential.
• Company Registration: The startup must be incorporated as a Private Limited Company, Limited Liability Partnership, or One Person Company and maintain an active status with the Ministry of Corporate Affairs.
• KSUM Registration: Applicants must hold a valid Kerala Startup Mission Unique ID.
• Target Stage: The program is intended for revenue-generating, growth-stage startups that have achieved market traction and are prepared to scale.
• Previous Funding: Startups that have received other eligible KSUM grants may apply, provided they comply with the cumulative funding limits and submit the relevant utilization documents.
• Outstanding Obligations: Any applicable rental dues, seed-loan dues, or other outstanding obligations to KSUM must be cleared before the grant can be released.
Margin Money and Fund Utilization
• Margin Money Requirement: Selected startups must contribute margin money equal to 50% of the approved grant amount.
• Eligible Activities: Grant funds may primarily be used for marketing, branding, business development, customer acquisition, market expansion, certifications, compliance activities, travel related to business growth, and limited product enhancement.
• Product Enhancement: Funding may be used to improve or enhance an existing product, subject to the limits and conditions established by KSUM.
• Founder Salaries: Salaries paid to founders are not considered an eligible expense.
• Utilization Reporting: Recipients must maintain appropriate financial records and submit progress reports and utilization certificates before subsequent tranches can be released.
• Goodwill Fund Undertaking: Selected startups may be required to undertake to contribute to a goodwill fund once the business becomes reasonably sustainable. The contribution may be at least equal to the grant amount received and will be used to support future innovation grants.
Application and Selection Process
• Online Application: Applications must be submitted through the Kerala Startup Mission grant portal during an official call for applications.
• Initial Screening: KSUM officials review submitted applications for eligibility, completeness, and alignment with the objectives of the scheme.
• Shortlisting: Startups selected through the initial screening process are notified by email and invited to proceed to the evaluation stage.
• Pitch Presentation: Shortlisted applicants must present their product, business opportunity, growth strategy, and proposed fund utilization plan before an expert committee.
• Evaluation Criteria: Applications are assessed based on the strength of the team, product innovation, market opportunity, marketing strategy, financial performance, scalability, and proposed use of the grant.
• Final Approval: Recommendations made by the expert committee are submitted to the Chief Executive Officer or Chairman of Kerala Startup Mission for approval.
• Agreement and Disbursement: Approved applicants must submit the required documents and execute an agreement with KSUM before any funding is released.
Required Documentation
Selected startups may be required to provide:
• A Chartered Accountant-certified no-dues and margin-money certificate with a valid UDIN.
• Proof of product revenue or external equity investment.
• Utilization certificates for previously received KSUM grants or seed loans.
• Company incorporation certificate and constitutional documents.
• Company PAN card.
• Valid KSUM Unique ID certificate.
• Identification documents for the founders.
• Company bank account details.
• Company balance sheets for the previous two years.
• A goodwill certificate or undertaking, where applicable.
• Stamp paper and any additional documents requested by KSUM.
Application Timeline
The Scaleup Grant is offered through official calls for applications issued by Kerala Startup Mission. Application windows and submission deadlines are announced through the KSUM website, social media channels, and other official communications. Prospective applicants should review the current call carefully and submit a complete application before the specified deadline, as incomplete submissions may not be considered.
For comprehensive information about the grant, eligibility conditions, documentation requirements, and application process, prospective applicants should visit the official Kerala Startup Mission Scaleup Grant webpage.