Productisation Grant

About this grant

This grant supports startups in the critical product development stage, aiding them in transforming their Minimum Viable Prototype (MVP) into a market-ready final product. It is administered by the Kerala Startup Mission (KSUM), a flagship initiative of the Government of Kerala. KSUM plays a pivotal role in nurturing the state's startup ecosystem, acting as a central agency for various government-led programs aimed at supporting technology-driven entrepreneurship, from ideation to scale-up. Through this grant and other initiatives, KSUM aims to foster a culture of innovation, create job opportunities, and position Kerala as a leading startup hub in India. The Productisation Grant specifically targets the phase where a promising prototype needs rigorous development, testing, and refinement to meet market demands. This financial support helps bridge the gap between technical innovation and commercial viability, enabling startups to overcome the common challenges associated with bringing a new product to market, such as funding for advanced development, certifications, and initial user feedback cycles. The scheme provides financial assistance up to ₹7 lakhs for general applicants, with an enhanced provision of up to ₹12 lakhs for women-led startups where women hold a major share. Startups that have previously secured an Idea Grant are eligible to apply for the remaining balance. Funds are disbursed in milestone-based tranches, adhering to KSUM's specified guidelines. This financial assistance is structured to align with developmental milestones, ensuring that funds are utilized effectively for product advancement. This approach not only provides crucial capital but also encourages disciplined project management and accountability from the grantees. The grant is exclusively for startups owning innovative technology-based products. It is intended to strengthen product development efforts, facilitate essential testing and validation, and prepare products for early market entry. Explicitly prohibited expenses include founder salaries, purchase of fixed assets like land, buildings, or high-end equipment exceeding ₹2 lakhs, rent, and major infrastructure setup costs.

Eligibility requirements

All of the following criteria must be met:

• Startups must be in the product development stage, focused on converting a Minimum Viable Prototype (MVP) into a market-ready product. This implies that the startup should have a functional prototype demonstrating core functionalities, and the grant will support the further development needed for a robust commercial launch.
• The entity must be incorporated as a Private Limited company or a Limited Liability Partnership (LLP) with active MCA status. This requirement ensures legal compliance and formalizes the business structure, which is essential for receiving government grants and for future investment readiness.
• The startup must own an innovative technology-based product. This emphasizes the grant's focus on technological innovation and proprietary solutions, distinguishing it from service-oriented businesses or generic offerings.
• A KSUM Unique ID is mandatory at the time of application filing. This ID serves as a primary identifier within the Kerala startup ecosystem, facilitating streamlined access to various KSUM schemes and monitoring startup progress.
• Applicants who have previously availed an Idea Grant are only eligible to claim the balance amount. This policy ensures equitable distribution of funds and encourages startups to leverage different KSUM schemes sequentially as they mature.
• Startups must commit 20% of the approved grant amount as margin money, applicable during the second tranche disbursement. This margin money demonstrates the startup's commitment and financial stake in the project, promoting responsible utilization of the grant funds.

What the funding covers

• Grant amount: ₹700,000
• This grant supports startups in the critical product development stage, aiding them in transforming their Minimum Viable Prototype (MVP) into a market-ready final product
• It is administered by the Kerala Startup Mission (KSUM), a flagship initiative of the Government of Kerala
• KSUM plays a pivotal role in nurturing the state's startup ecosystem, acting as a central agency for various government-led programs aimed at supporting technology-driven entrepreneurship, from ideation to scale-up

How to apply

1. 1Applications are scrutinized by KSUM officials during an initial screening phase. This phase involves a thorough review of the submitted application form, supporting documents, and the alignment of the startup's product with the grant's objectives and eligibility criteria. Only applications that meet all preliminary requirements and demonstrate strong potential proceed to the next stage.
2. 2Shortlisted applicants are invited to present their idea and fund utilisation plan before an Expert Committee. This presentation is a crucial opportunity for startups to articulate their vision, showcase their product's innovation, and clearly outline how the grant funds will be strategically deployed to achieve productization milestones.
3. 3The Expert Committee, comprising industry experts, technologists, and entrepreneurs, evaluates applications based on team capabilities, product innovation, market potential, financial projections, and the clarity and feasibility of the proposed grant utilisation plan. Their assessment ensures that only high-potential and well-planned projects receive support.
4. 4Recommendations are submitted for approval to the CEO/Chairman of KSUM. This final review by the leadership ensures alignment with KSUM's strategic goals and overall mission.
5. 5Approved startups must submit required documents and execute an agreement with KSUM before fund release. This legal agreement formalizes the grant terms, conditions, milestones, and reporting requirements, ensuring transparency and accountability.
6. 6Funds are disbursed in milestone-based tranches, typically 50% initially, with the balance released after a satisfactory progress review and submission of an audited utilisation certificate. This phased disbursement strategy encourages continuous progress and ensures that funds are tied to tangible achievements in product development.

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