Building Startups in Kerala: What a decade of Kerala Startup Mission shows

The year was 2016. Students of MES College of Engineering in Malappuram, Kerala, cheering on a student wearing a robotic exoskeleton on campus: the brainchild of four friends – Vimal Govind MK, Nikhil P, Rashid K and Arun George.

A photo of the event caught the attention of Kerala Startup Mission (KSUM), the nodal agency of the Government of Kerala to support entrepreneurs. Students were approached and given the opportunity to do something revolutionary with technology. Two years later, he launched a robot called Bandicoot, which would replace manual scavengers. His company, Genrobotics, has since built more than 400 robots for 19 Indian states and two union territories, and even exported them to Malaysia, Singapore, African countries, and countries in West Asia.

Ten years of KSUM have strengthened Startup ecosystem in Kerala. The number of startups spanning various sectors has crossed 7800, up from 300 startups in 2016. While some have collaborated with KSUM from the concept stage, others have received support in the form of funding, infrastructure, mentorship and exposure.

The Innovation and Entrepreneurship Development Center (IEDC) established by KSUM in professional as well as arts and science colleges and polytechnics played an important role. Today, there are more than 550 IEDCs functioning across the state, says Anoop Ambika, CEO, KSUM.

“We had made two models of the exoskeleton and by the time the second model was made, we had an IEDC in college. Although we wanted to set up a company focusing on robotic technology after college, we had to give up that dream due to financial constraints. Once KSUM told us about grants and funds, we left our jobs to pursue what we really wanted to do,” says Vimal, CEO of KSUM. xenorobotics.

He says, “It was the KSUM team that came up with the idea of ​​tackling manual scavenging through our technology. We did not realize the seriousness of the situation (manual scavenging) then. By the time we received the grant (of ₹10 lakh), we had understood the scenario and realized that it was an easy and sustainable idea to work on.”

The technology has already been adapted to clean hazardous, confined spaces like refineries across India. Additionally, they have launched G-Gator, a neuro rehabilitation robot for adults and children, which is currently being used in hospitals in Kerala and South India. GenBot, a multipurpose semi-humanoid robot that can be used in a number of specific segments, and G Bot, a bipedal general purpose humanoid for human workplaces and homes, are other products. “Research on developing robotic arms to handle space debris, material repair, etc. is ongoing at our Dubai centre,” says Vimal.

Their G-Spider, an integrated robotic canal system, was tested in Thiruvananthapuram on January 28.

Fuselage Innovations Pvt Ltd, which has emerged as a leader in drone technology, especially in the agriculture sector, is run by Devika Chandrasekaran and her brother Devan Chandrasekaran. She says, “It was through KSUM that we were able to get grants from the state government. It also helped us get in touch with many stakeholders in the industry, which ultimately helped us get more orders.” Fuselage has sold more than 300 drones, mainly to farmers in Kerala, Tamil Nadu, Karnataka, Assam and Mizoram. Currently operating out of KSUM’s space at Maker Village near Kochi, Fuselage is fresh from winning the Aspire Award at the National Startup Awards 5.0 (NSA) in New Delhi.

“We have started operations in Canada and the UK. We are also making customized drones for some European countries and Australia,” says Devika. He said that apart from defense and maritime operations, they are also working on making a multi-purpose drone.

In the case of edtech firm, Unique World Robotics (UWR) India, which is currently in the news for gifting a desktop robot named after her dog Gorby to astronaut Sunita Williams during her visit to Kerala, KSUM came into the limelight when the company started its operations in Kerala after the pandemic.

UWR has been into AI, robotics and STEM education and research. “Based in Dubai since 2019, when we wanted to set up shop in Kerala in 2023, KSUM gave us the support we needed. Their partnership opened up opportunities, thus giving us visibility and acceptance,” says Bunsen Thomas George, founder of UWR, which holds the distinction of being the largest organizer of NASA’s hackathon covering India, UAE and the Netherlands. “When we organized the first hackathon in 2023, KSUM stepped in with advisors and sponsors,” he says, adding that the company will soon expand to Qatar and Kuwait.

support system

KSUM has provided financial assistance of ₹32.31 crore in the form of innovation grant and ₹12 crore in the form of seed loan. The total investment in Kerala startups has reached approximately ₹6,000 crore.

Initially KSUM used to give an idea grant of ₹2 lakh, in which many students played around with ideas. To raise capital, it later came up with schemes like Seeding Kerala, a curated angel investors summit and Fund of Funds, under which it partners with SEBI-recognized alternative investment funds to invest in startups, with the state government acting as a limited partner.

Kerala is currently working with 16 venture capital funds. Venture capitalists have invested around ₹207 crore in Kerala startups. Through this scheme, Thiruvananthapuram-based semiconductor startup Netrasemi raised ₹118 crore, the largest investment raised by a semiconductor startup in India. Backed by the same scheme, Kochi-based underwater drone startup Irov won a work order worth ₹47 crore from the Indian Navy.

In 2017, Government as Market Place (GAAM) was introduced, under which government departments can directly procure products or services from startups and allow tenders exclusively for startups.

A new startup joining the list is CRAV, launched by actor-producer Nivin Pauly and young entrepreneur Ramees Ali at the latest edition of KSUM’s startup festival Huddle Global held in Kovalam, Thiruvananthapuram last month. Ramees, a law graduate, launched Interval Learning, a one-on-one tuition platform at Ericode in Malappuram in 2021, with a target of 50,000 students spread across 65 countries by 2025.

“Although KSUM was not in the picture when Interval was formed, when we faced problems in 2023 it was their mentors under MIND (Mentor Inspired Networking On-Demand) who helped us. KSUM also opened up new opportunities and gave publicity and thus showed their trust in us,” says Ramis, who exited Interval last year before launching CRAV.

Ramees, a film buff, says CRAV was born out of discussions he had with Nivin when they met at the Kerala Innovation Festival organized by KSUM in Kochi. “CRAV, based on the word crave, is an IP factory for animation films, comics, games etc developed in Kerala. Our content has global grammar but we cannot create Spiderman or Tom & Jerry or Mr Bean. Our aim is to create IPs that will drive long-term revenue. Nivin is clear about what he wants and we have joined hands to execute his passion and vision,” says Ramees, head of KSUM, Kochi. Space has been provided for CRAV in Kalamassery. “We are also planning an incubator in collaboration with KSUM where creators will be supported in creating IPs.”

Anoop says one of the biggest achievements for KSUM has been bringing Zoho Corporation to Kerala, with the inauguration of its R&D center in Kottarakkara last July.

KSUM’s co-working spaces are known as LEAP (Launch Empower Accelerate Prosper) and around 350 startups are currently working in more than 20 such centres. KSUM also runs two Fab Labs (manufacturing laboratories), including the Super Fab Lab in Kochi, opened in collaboration with the Massachusetts Institute of Technology (MIT), the only one of its kind outside the US. This is in addition to 23 mini fab labs in various colleges. Also, 63 incubators are functioning in various institutes and universities.

looking ahead

*Startup Infinity – Setting up business in Kerala for expatriates. The first center was opened in Dubai and more centers are being opened in Belgium, USA and Germany

*Freedom Square – A space for students to fulfill their entrepreneurial dreams in Pallipuram, Thiruvananthapuram. There is a plan to open one in every district.

*Startup Pod – To promote work culture in collaboration with Tourism Department. The first one will be built in Varkala

* Emerging Technology Center – being built on three acres in Thiruvananthapuram

Apart from the Technopark in Thiruvananthapuram, KSUM has several locations in Kochi, including the Digital Hub and the Kerala Technology Innovation Zone, an integrated startup complex comprising a Maker Village and Super Fab Lab, and the Cyberpark in Kozhikode.

Leading among the colleges has been the Amal Jyoti College of Engineering in Kottayam, which opened an entrepreneurship development cell in early 2006 under the mentorship of Technopark Technology Business Incubator (TTBI), KSUM’s predecessor. Known as Startup Valley TBI, it has 73 startups, including incubated and pre-incubated startups by students, alumni, faculty and individuals outside the campus, says Professor Sherin Sam Jose, CEO, Startups Valley TBI.

KSUM is organizing special programs to promote women-run startups, apart from programs for persons with disabilities and marginalized communities. A new scheme for retirees is also in the pipeline.

Anoop, who has witnessed the growth of the ecosystem and is excited by the startup boom, says, “Unlike states like Gujarat and Maharashtra, our society has not been enthusiastic about entrepreneurship. It used to be for families who already have businesses or it could be for children who are not good in studies. Our children were groomed to do jobs rather than doing business. But the scenario has changed.”