Scaleup Seed Fund

• DPIIT-recognised Kerala Pvt Ltd startups at revenue stage, ready to scale.

About this scheme

The Scaleup Seed Fund is an initiative from the Government of Kerala, executed by the Kerala Startup Mission (KSUM). The Kerala Startup Mission (KSUM), as the government's nodal agency for entrepreneurship, plays a pivotal role in nurturing a dynamic startup ecosystem across Kerala. Its comprehensive mandate involves providing financial aid, mentorship, and infrastructure to enable startups to innovate and scale.

This scheme extends financial assistance, primarily structured as collateral-free debt or through instruments such as Convertible Compulsorily Debentures (CCDs) and Compulsorily Convertible Preference Shares (CCPS). Each eligible startup can receive support amounting to a maximum of Rs. 25 lakhs. The funds are strategically disbursed in installments, ensuring alignment with project milestones and sustained progress. This financial injection aims to facilitate various growth activities, including product enhancement, strategic business expansion, targeted marketing initiatives, and the acquisition of essential licenses and certifications. By serving as a vital link, the Scaleup Seed Fund effectively bridges the gap between nascent early-stage investments and more substantial venture capital funding, thereby empowering startups to scale their operations, solidify their market presence, and attract subsequent rounds of investment, contributing to the state's economic development.

Who can apply

• The startup must be a registered company in Kerala as a Private Limited and maintain an active registration status with MCA at the time of application. The requirement for registration in Kerala ensures the scheme directly supports the state's economic development and local innovation.
• Applicants must have obtained startup recognition from DPIIT and possess a KSUM Unique ID. Furthermore, obtaining DPIIT startup recognition validates the startup's innovative nature at a national level, while a KSUM Unique ID integrates them into Kerala's comprehensive startup support framework.
• The startup should focus on developing an innovative product or technology; the seed fund is generally not provided to service startups or SMEs engaged in trade and commerce. The focus on product or technology-driven innovation, rather than service-based businesses, ensures the fund targets high-growth potential ventures.
• The support is typically allocated for commercializing indigenous products, innovations, and technologies.
• The company must have generated at least Rs. 25 lakhs of revenue from its product in the last four quarters, or it must have secured an investment of at least Rs. 25 lakhs from an Angel network or VC firm. The financial thresholds, either significant revenue or prior investment, demonstrate a proven market fit and operational traction, indicating the startup's readiness for scale-up rather than initial validation.
• It is required that the startup has generated a minimum of Rs. 5 lakhs of revenue in the quarter immediately preceding the application date, with a preference for those demonstrating consistent month-on-month revenue progress. Consistent revenue progress in the quarter prior to application is preferred, showcasing sustainable growth and effective business management.
• The applying startups must not have any pending dues with any government agencies.
• Startups must not be blacklisted by any government agency within India.

Eligible entity types: Private Limited

Benefits & funding

• Collateral-free debt (up to Rs.
• 25 lakhs) via debentures/preference shares, disbursed in installments tied to milestones.
• Funds support product enhancement, business expansion, marketing, and licenses.
• KSUM also provides mentorship and infrastructure, bridging early-stage investments with venture capital.

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

   Applicants submit an online business profile and seed proposal for initial review by KSUM.

2. 2

   Shortlisted startups have a virtual call, followed by a final pitch to the Scale-up Seed Expert Committee for rigorous evaluation.

Documents checklist 2

• Business Profile
• Seed Proposal

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

Frequently asked questions