BCDD Grant by KSUM & BCDD Kerala

• OBC graduates aged 23-40 in Kerala building a tech-based startup.

About this scheme

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 Rs. 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 Rs. 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 Rs. 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.

Who can apply

• 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.

Eligible entity types: Private Limited, LLP

Benefits & funding

• 10 lakhs funding: an Idea Grant (Rs.
• 3 lakhs for concept validation, market research) and a Productization Grant (Rs.
• 7 lakhs for prototype development, pilot projects, IP, market entry, early growth).
• It also integrates startups into the KSUM ecosystem, providing support and monitoring.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with Kerala Startup Mission, in your own name.

1. 1

   Initial screening by KSUM officials.

2. 2

   Shortlisted applicants pitch to an Expert Committee (KSUM, BCDD, industry experts).

3. 3

   Proposals are evaluated on team, innovation, market potential, strategy, financials, and grant utilization.

4. 4

   Final recommendations require KSUM CEO/Chairman approval.

Documents checklist 8

• CA-certified No Dues & Margin Money Certificate with UDIN
• Revenue or Investment Proof
• Incorporation Documents
• PAN Card
• KSUM Unique ID
• Bank Details
• Balance Sheet for Last Two Years
• Stamp Paper

Need help getting these in order? IncorpX provides assistance for incorporation, DPIIT recognition, MSME and GST registrations along with document preparation.

Frequently asked questions