Experts at Huddle Global 2025 urged the Kerala Startup Mission (KSUM) to chart a distinctive ‘Kerala Model’ for its startup ecosystem—one that balances MSMEs with high-potential unicorn ventures. The recommendation came during a session titled From Mission to Momentum: The Evolution of Kerala’s Startup Ecosystem and Way Forward, held on the opening day of India’s largest beachside startup festival, organised by KSUM at Kovalam.
Kerala’s startup landscape, they noted, has thrived not through industry backing, but largely due to consistent and forward-looking government policies over the past decade and a half.
Highlighting the path ahead, M Sivasankar, former Principal Secretary to the Kerala Chief Minister, emphasized the need for a strategic mix of MSMEs and unicorns. He suggested that KSUM identify 100 startups with the potential to reach ₹100 crore in revenue within the next two years and select 10 startups with IPO-ready potential in the same period.
Sivasankar also pointed out a critical funding gap: “Banks have yet to fund a single startup directly. Venture capital and working capital mechanisms exist, but traditional banks only fund startups once they qualify as MSMEs. The government and KSUM need to address this.” He further proposed harnessing alumni networks to strengthen the ecosystem.
Dr Saji Gopinath, IIM Kozhikode faculty and former VC of Kerala University of Digital Sciences, underscored the need for clarity on whether startups should follow the MSME or startup route, with KSUM policies tailored accordingly.
Tapan Rayaguru, Analytics Leader, cautioned against over-reliance on government grants, while Dr Jayasankar Prasad, Director at the Centre for Management Development, called for KSUM to operate as an autonomous body rather than a departmental extension, with long-serving employees made permanent.
P H Kurian, former Chairman of the Kerala Real Estate Regulatory Authority, recommended showcasing startups at international exhibitions to build networks, expand markets, and bolster their confidence in pitching products. He also advocated for dedicated mentorship for emerging ventures.
The discussion was moderated by Anoop Ambika, CEO of KSUM.
