Productisation Grant

• Kerala tech startups converting an MVP into a market-ready product.

About this scheme

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 Rs. 7 lakhs for general applicants, with an enhanced provision of up to Rs. 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 Rs. 2 lakhs, rent, and major infrastructure setup costs.

Who can apply

• 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.

Eligible entity types: Private Limited, LLP

Benefits & funding

• Financial assistance up to Rs.
• 7 lakhs for general applicants, or up to Rs.
• 12 lakhs for women-led startups, disbursed in milestone-based tranches.
• This grant supports startups in transforming their MVP into a market-ready product, bridging the gap between innovation and commercial viability.
• It aids product development, testing, validation, and early market entry, encouraging disciplined project management.

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

   Applications undergo initial screening by KSUM officials.

2. 2

   Shortlisted applicants present their idea and fund utilization plan to an Expert Committee for evaluation.

3. 3

   Recommendations are then submitted for final approval to the CEO/Chairman of KSUM.

Documents checklist 8

• CA-certified No Dues & Margin Money Certificate with UDIN
• Revenue/Investment Proof
• Incorporation Documents
• PAN
• 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