Kerala’s burgeoning startup ecosystem needs to focus on securing more diverse funding avenues to realise its potential as a global innovation hub, according to Shri Vikram Gupta, Founder and Managing Partner of IvyCap Ventures.
Kerala’s Rise as a Startup Hotspot
Speaking at India’s largest startup festival, Huddle Global 2025, on the theme “Kerala’s Moment from Talent to Scale,” Shri Gupta highlighted that Kerala possesses the fundamentals necessary to become a global startup hotspot. He noted the state’s strong talent pool and focus on deeptech and emerging technologies as key drivers.
Kerala’s startup ecosystem has grown by 147% in value, bolstered by supportive infrastructure and skilled professionals, making it a fertile ground for scaling innovative ventures.
Alternative Funding Models
Shri Gupta emphasised that the ecosystem urgently needs more acceleration funding, suggesting that Kerala could leverage Alternative Investment Funds (AIFs) to bridge the gap.
He also pointed out that Kerala’s extensive diaspora network positions the state well to explore an endowment model. “A professional endowment driven by the diaspora could create a long-term corpus for startup funding,” he said, adding that such an approach could provide sustained support for emerging enterprises.
Aligning Capital, Talent, and Sector Focus
The ecosystem should focus on aligning capital with talent and establishing targeted growth pathways in sectors like deeptech and agri-food. Enhancing investor-corporate partnerships and building focused funding channels are also critical for scaling the state’s startups.
Future of Venture Capital in India
By 2033, India’s venture capital (VC) funding is projected to reach USD 45 billion, primarily driven by the tech sector. Shri Gupta highlighted emerging trends such as the rise of AI-focused funds, growth of domestic capital, consolidation of VC funds, and a more favourable exit environment for investors.
Rethinking Funding Approaches
A panel discussion on “Capital with conviction: Rethinking India’s funding DNA through patient capital” underlined that India’s startup ecosystem has matured to a stage where venture funding must move beyond traditional evaluation metrics.
The panel featured Shri Ranjith Menon, Partner at Blume Ventures; Anjali Sosale, Investor at Waterbridge Ventures; and Kunal Khattar, Managing Partner at Advantedge, who collectively stressed the importance of patient, strategic capital for long-term growth.
