Marketing Incentives: Karnataka Startup Policy (International Marketing Reimbursement)

• Karnataka-based startups seeking reimbursement for international marketing expenses.

About this scheme

The Government of Karnataka, through the Karnataka Biotechnology and Information Technology Services (KBITS), offers financial incentives to support startups in their international marketing efforts. KBITS, a pivotal nodal agency of the state government, is instrumental in promoting the sustained growth of the IT, BT, and Startup sectors within Karnataka. Its overarching mandate is to foster a dynamic and competitive startup ecosystem, enabling local innovations to achieve global recognition and success. This program specifically aims to reimburse eligible expenses incurred by startups participating in global trade shows, international conferences, and other strategic promotional activities, thereby facilitating their entry into new markets.

Recognizing the critical importance of global market access for scaling innovative ventures, this scheme empowers Karnataka-based startups to overcome financial barriers associated with international expansion. By supporting participation in global events and marketing initiatives, the program directly contributes to enhancing the visibility of Karnataka's startups on the world stage, attracting potential investors, partners, and customers.

Under this scheme, eligible startups can claim reimbursement for 30% of their actual international marketing costs, with a maximum cap of Rs. 5 Lakhs per company annually. The reimbursement covers a comprehensive range of activities, including travel expenses for trade show participation, various international marketing and sales promotion initiatives, and costs associated with digital and print publications for brand building and global outreach. Additionally, subscriptions to vital market research materials, which provide crucial insights into international markets, are also eligible for reimbursement. The financial support is provided to offset a portion of critical international outreach expenses. Specifics include economy air travel, and a daily allowance for lodging, food, and local commute during international travel, capped at USD 100 per day. While the core support is monetary reimbursement, the program effectively enables market access and global exposure for Karnataka-based startups, positioning them for international growth.

Claims are processed on a half-yearly basis within the financial year, and must be submitted within six months of the expense being incurred. The program explicitly gives preference for reimbursement to applications submitted by woman members of the startup, underscoring a key objective to promote diversity and inclusion within the state's burgeoning startup ecosystem, encouraging more women entrepreneurs to take their ventures globally.

Who can apply

• To be considered for this vital international marketing reimbursement program, applicants must meet specific criteria designed to ensure the scheme's effectiveness and reach.
• The startup must be officially registered with the Karnataka Startup Cell and possess a valid registration number. This ensures that the applicant is a recognized entity within Karnataka's startup ecosystem, aligning with the state's broader economic development goals.
• Eligible expenses are strictly restricted to participation in trade shows, international conferences, and related international marketing and brand-building activities. This focus ensures that the support directly contributes to global market entry and expansion efforts.
• Claims for reimbursement must be submitted within six months from the date the expense was incurred. This timeframe ensures timely processing and validates the recency of the marketing efforts, promoting active engagement rather than retrospective claims.

Benefits & funding

• Reimbursement up to Rs 5 Lakhs annually for 30% of international marketing expenses, covering travel (economy air, USD 100/day allowance), promotional activities, digital/print publications, and market research subscriptions.
• Enables market access and global exposure.
• Preference for women founders.

How the application process works

The journey below is informational, compiled from the official program guidelines. Applications are submitted directly with KBITS, Government of Karnataka, in your own name.

1. 1

   Applications are submitted to the Karnataka Startup Cell and verified upon receipt.

2. 2

   The Nodal Officer recommends the application to the Managing Director of KBITS for sanction.

3. 3

   Approved reimbursements cover international marketing expenses incurred by eligible Karnataka-registered DPIIT startups.

Documents checklist 9

• Application form as per Annexure I
• Annexure II (if applying through a GoK Supported Incubator)
• Documentation for International Event/Trade Show (Invitation Letter, Welcome Letter, event webpage, brochures)
• Market Research Subscription/Reports (if applicable)
• Proof of International Advertisements/PR (scanned material, web links)
• Copies of invoices and purchase orders for marketing expenses with supporting documents
• Proof of travel and stay (hotel bills, air tickets, boarding pass, passport and visa pages)
• Business development activities report from trade fair visit
• Audited financial statements for the last three years and Annual Reports

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

Frequently asked questions