Seed Fund Scheme - Kerala Startup Mission

• Aimed at DPIIT-recognised Kerala startups at the product or early-revenue stage that need repayable seed capital.

About this scheme

Run by the Kerala Startup Mission (KSUM), the Seed Support Scheme channels early-stage capital to startups that are building genuine, technology-led products, with the wider aim of seeding new ventures, jobs, and private investment across the state. As Kerala's nodal startup agency, KSUM also wraps the funding in the programmes and infrastructure it operates for young companies.

The support takes the form of a soft loan of up to Rs. 15 lakh, advanced against purchase orders and carrying simple interest of 6% a year, which keeps the cost low for a company still finding its feet. Because it is structured as a repayable loan, KSUM takes no equity. Money is released in milestone-linked tranches: an initial disbursal followed by further instalments once the startup files progress reports and utilisation certificates. Repayment only begins after a 12-month moratorium and then runs over 36 monthly instalments, and a company can prepay at any time without penalty.

The loan is meant for the work that gets an innovative product to market, including product and customer development to test demand, marketing, and scaling. It can equally fund testing and trials, specialist consultancy, intellectual-property work, and the manpower needed to keep operations running, helping a team hold on to talent through its leanest phase.

The value is not only financial. Sitting at the centre of Kerala's startup network, KSUM puts applicants in front of seasoned representatives and expert committees across evaluation and funding, which brings useful feedback, direction, and mentoring. Applications are accepted on a rolling basis at startupmission.kerala.gov.in, and the scheme's deliberate tilt toward product and technology startups is designed to build a stronger deep-tech base in the state.

Who can apply

• The company has to be registered in Kerala as an LLP or a private limited company, anchoring the support to the state's economy.
• It needs a live KSUM Unique ID, the marker of active participation in Kerala's startup ecosystem.
• DPIIT (DIPP) recognition is required, along with an 'Active' or 'Active Compliant' status on the MCA register, confirming the company is legitimate and compliant.
• The venture should be building an innovative product or technology rather than offering a conventional service or a minor improvement.
• Priority goes to product and technology startups; pure service businesses and trading SMEs are generally excluded.
• The applicant must carry no outstanding dues to any government agency, KSUM, or other state incubators.
• It must not appear on any Indian government blacklist.
• Because this is a loan, directors should ideally have a CIBIL score above 750, signalling sound repayment history.
• The product should typically be at the prototype or MVP stage, with something testable already built.

Eligible entity types: LLP, Private Limited

Benefits & funding

• A soft loan of up to Rs. 15 lakh at 6% simple interest a year, with no equity taken.
• A 12-month moratorium before repayment, then 36 monthly instalments, with penalty-free prepayment allowed.
• Funding usable for product and customer development, marketing, scaling, testing, consultancy, IP work, and operational manpower.
• Milestone-based disbursal plus feedback and mentoring from KSUM representatives and expert committees.

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

   Submit the application online at startupmission.kerala.gov.in, then take part in an initial evaluation call and pitch with KSUM representatives.

2. 2

   Present a final, detailed pitch to the Seed Expert Committee, which evaluates and shortlists applicants.

Documents checklist 6

• Seed application form
• Business profile
• Seed proposal
• Final pitch presentation
• Fund utilisation plan
• Project plan with milestones and timeframe

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

Frequently asked questions