Kerala Startup Mission, Backward Classes Development Department

About this grant

The BCDD Funding Support Scheme, a pioneering initiative by the Government of Kerala, offers crucial early-stage financial assistance to graduates from Backward Classes. This program is designed to empower them to successfully launch and scale technology-driven startups, contributing significantly to the state's innovation landscape. Implemented collaboratively by the Kerala Startup Mission (KSUM) and the Backward Classes Development Department (BCDD), the scheme actively works to foster inclusive entrepreneurship. KSUM, as the nodal agency for entrepreneurship development in Kerala, plays a vital role in building a diverse and dynamic startup ecosystem, supporting thousands of startups through various programs and initiatives, while BCDD focuses on the socio-economic upliftment of backward classes. This partnership ensures that financial support reaches deserving entrepreneurs from underrepresented communities, fostering equitable growth. The program offers structured financial support, with a maximum benefit of up to ₹10 lakhs per eligible startup. This funding is strategically divided into two distinct phases to cater to different developmental needs and milestones in a startup's journey. An initial Idea Grant provides up to ₹3 lakhs, specifically allocated for concept validation, market research, and refining foundational ideas to ensure they are viable and address a genuine problem. This initial phase helps entrepreneurs solidify their vision before committing to full-scale development. Following this, a more substantial Productization Grant offers up to ₹7 lakhs. The Productization Grant is intended to fuel critical development activities, bridging the gap between a validated concept and a market-ready product. Startups can utilize these funds for essential prototype development, conducting pilot projects, securing intellectual property, facilitating their initial market entry, and supporting early growth initiatives such as user acquisition or business development. This comprehensive financial support enables founders to transform innovative concepts into viable products and gain initial traction within their target markets, ultimately accelerating their journey towards commercialization and sustainability.

Eligibility requirements

All of the following criteria must be met:

• The applicant must be a Graduate (any stream) from Backward Classes (OBC). This criterion ensures that the program directly addresses the need for economic empowerment and entrepreneurial opportunities within these specific communities, aligning with BCDD's mandate.
• The applicant's age must be between 23 to 40 years. This age range targets individuals who have completed their education and possess some professional experience, or are ready to embark on an entrepreneurial journey with fresh perspectives, but are still in a relatively early career stage.
• For the Productization Grant, a minimum of 80% shareholding must be owned by OBC founder(s). This specific shareholding requirement ensures that the primary beneficiaries of the grant are indeed OBC entrepreneurs, reinforcing the program's objective of inclusive growth and wealth creation within the Backward Classes.
• The startup must own an innovative technology-based product or be developing one. The focus on technology ensures that the grant supports ventures with high growth potential and contributes to Kerala's evolving tech landscape.
• Company incorporation (Private Limited, LLP, or OPC) and a KSUM Unique ID are mandatory before fund disbursal. This ensures legal compliance, establishes the startup as a formal entity, and integrates it into the KSUM ecosystem, facilitating further support and monitoring.
• Only one idea can be applied for at a time; two grants will not be sanctioned simultaneously. This rule ensures fairness and focuses resources on one promising venture per applicant, preventing over-extension and maximizing the chances of success for each funded project.

What the funding covers

• Grant amount: ₹1,000,000
• The BCDD Funding Support Scheme, a pioneering initiative by the Government of Kerala, offers crucial early-stage financial assistance to graduates from Backward Classes
• This program is designed to empower them to successfully launch and scale technology-driven startups, contributing significantly to the state's innovation landscape
• Implemented collaboratively by the Kerala Startup Mission (KSUM) and the Backward Classes Development Department (BCDD), the scheme actively works to foster inclusive entrepreneurship

How to apply

1. 1Applications undergo an initial screening by KSUM officials. This preliminary evaluation assesses the completeness of the application, the innovation quotient of the proposed idea, the team's background, and its alignment with the program's objectives. Shortlisted applicants are then moved to the next phase.
2. 2Shortlisted applicants are invited to pitch their ideas to an Expert Committee, which includes representatives from KSUM and BCDD officials, as well as external industry experts. This pitching session allows founders to present their business model, technology, market potential, and financial projections in detail, and to answer questions from the committee.
3. 3The committee evaluates proposals based on a comprehensive set of criteria, including the strength and experience of the team, the novelty and market potential of the product innovation, the clarity and feasibility of the marketing strategy, the robustness of the financial projections, and a detailed plan for grant utilisation. This rigorous evaluation ensures that only the most promising and impactful startups receive funding.
4. 4Final recommendations from the Expert Committee receive approval from the CEO/Chairman, KSUM, after a thorough review to ensure compliance with all guidelines and strategic alignment.
5. 5Funds are disbursed in milestone-based tranches. This structured approach means that subsequent tranches of funding are released upon the startup achieving pre-defined milestones and submitting necessary documentation and progress reports, as outlined in an agreement signed by the recipient. This method ensures accountability and effective utilization of public funds, aligning funding with demonstrable progress.

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