Kerala has emerged as one of the top destinations for start-ups, according to a new report released on Saturday by digital media platform Inc42 and The Indus Entrepreneurs (TiE) Kerala.
What Makes Kerala an Ideal Destination?
What makes Kerala the perfect destination for sowing seeds of Start-up development? “Kerala’s per capita income is 60 per cent higher than India’s average. Moreover, it receives the largest remittances from abroad. Coupled with 100 per cent literacy and a social structure where many Keralites want to come back and work from their hometown,” says Pankaj Sharma, Co-founder and Advisor of Log 9 Materials (based in Kochi, Kerala).
He also added that due to the low cost of living and availability of good talent pool Kochi ecosystem might provide the work-life balance and a capital efficient operative model for early-stage startups.
An Emerging State for Start-ups & Entrepreneurs
When it comes to spearheading start-up initiatives, Kerala is one state whose example other states must take. The state government setup the Kerala Start-up Mission (KSUM) in 2014 to fuel entrepreneurship development and incubation activities. It provides a platform to budding entrepreneurs from all walks of life and communities-students, college students and start-ups themselves- to fulfill their entrepreneurial dreams.
According to the report, Kerala is a flourishing ecosystem of 2200 start-ups and has recorded an impressive annual growth rate of 17 per cent since 2012. The state is ahead of its neighbouring states such as Hyderabad and Chennai that have 1940 and 1520 start-ups respectively.
According to the report, there are 47 funded start-ups in the state that have raised $89 million to date. 13 start-ups received funding this year amounting to $44 million. The state is not just a prospering start-up state but also has a network of 80 investors in the state, more than 40 incubators.
While metropolitan cities like Delhi, Mumbai, and Bangalore were always seen as game changers of entrepreneurship, Kerala is proving to be the underdog. Backed with strong innovation and development infrastructure, the state has the potential to go miles.