Scaleup Grant

About this grant

The Scale-up Grant, an initiative by the Kerala Startup Mission (KSUM), the nodal agency of the Government of Kerala for entrepreneurship development, is designed to empower innovative, technology-based startups that have successfully achieved significant market validation. KSUM's mission is to foster innovation, create jobs, and drive economic growth by supporting startups across different stages of their journey. This program specifically targets companies that are primed to scale their operations, having demonstrated proven traction and entering a high-growth phase, playing a pivotal role in nurturing Kerala's startup ecosystem. The scheme provides substantial financial assistance of up to ₹15 lakhs, aiming to catalyze the expansion and growth of eligible startups. Funds are disbursed in milestone-based tranches, ensuring adherence to KSUM's guidelines and established performance benchmarks. A provision exists for startups that have previously benefited from other KSUM grants, such as Idea, Productization, or Market Acceleration Grants, allowing them to apply for the remaining eligible amount under the Scale-up Grant. The funding is strategically intended to facilitate critical business development areas. It can be utilized for expanding into new geographical markets, strengthening branding and marketing initiatives, implementing product feature enhancements, and accelerating customer acquisition strategies to drive revenue growth. The grant primarily supports marketing, branding, business development, and customer acquisition, with specific caps applied to product enhancement activities, ensuring strategic allocation of resources for maximum impact.

Eligibility requirements

All of the following criteria must be met:

• The eligibility criteria ensure that the Scale-up Grant targets businesses with proven potential and a solid foundation for growth. The requirement for significant revenue generation or external equity investment (₹10 lakhs revenue in 6 months OR ₹30 lakhs external equity) is crucial, as it acts as a filter to identify mature startups that have validated their business model and possess the necessary traction to genuinely benefit from a scale-up grant. This demonstrates their operational viability and readiness for future expansion. Furthermore, the startup must own an innovative technology-based product, emphasizing the program's focus on high-potential, tech-driven solutions. Holding a valid KSUM Unique ID ensures recognition within Kerala's official startup ecosystem, enabling streamlined access to support. Incorporation as a Private Limited Company, Limited Liability Partnership, or One Person Company with active MCA status reflects the need for formal legal structures that facilitate professional operations, accountability, and investment readiness, essential for scaling. Startups that previously availed other KSUM grants are eligible, but only for the remaining amount under this scheme, promoting equitable distribution of support. Finally, a margin money of 50% of the approved grant amount must be brought by the startup, demonstrating genuine commitment and shared responsibility in the scaling process, signifying that founders are equally invested in the success.

What the funding covers

• Grant amount: ₹1 to ₹1,500,000
• The Scale-up Grant, an initiative by the Kerala Startup Mission (KSUM), the nodal agency of the Government of Kerala for entrepreneurship development, is designed to empower innovative, technology-based startups that have successfully achieved significant market validation
• KSUM's mission is to foster innovation, create jobs, and drive economic growth by supporting startups across different stages of their journey
• This program specifically targets companies that are primed to scale their operations, having demonstrated proven traction and entering a high-growth phase, playing a pivotal role in nurturing Kerala's startup ecosystem

How to apply

1. 1The application process for the Scale-up Grant is designed to identify the most promising startups ready for significant growth. It begins with an initial screening by KSUM officials, where submitted applications are thoroughly reviewed for adherence to eligibility criteria, financial viability, innovation, and market potential. Shortlisted applicants are then notified and invited to present their proposals. These pitches are made to an Expert Committee, which rigorously evaluates various aspects including the team's capabilities, the product's innovation and market fit, marketing and business development strategies, financial projections, and a detailed plan for fund utilization. This ensures that only ventures with strong potential and a clear growth roadmap are recommended. Following the committee's recommendations, final approval rests with the CEO/Chairman of KSUM. Once approved, startups are required to submit necessary documents and execute a formal agreement with KSUM, outlining the terms and conditions of the grant. Funds are then disbursed in milestone-based tranches. This means that subsequent releases of funds are contingent upon the startup providing detailed progress reports and demonstrating achievement of predefined milestones, ensuring accountability and effective utilization of the grant for sustained growth.

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