Kerala is shifting its startup strategy from building a strong startup ecosystem to scaling businesses into globally competitive companies. Chief Minister V.D. Satheesan announced that the state government will introduce a dedicated Scale-up Mission and establish a funding consortium to support startups in turning innovative ideas into products and expanding into international markets.
He was speaking at the inauguration of the eighth edition of Huddle Global 2026, Asia’s largest beachside startup festival, organised by the Kerala Startup Mission (KSUM) in Kovalam.
Government Plans Startup Funding Consortium
The Chief Minister said the proposed consortium would bring together government agencies such as the Kerala Financial Corporation (KFC), Kerala State Industrial Development Corporation (KSIDC) and investment banks. The initiative aims to ensure that startups have access to adequate funding to develop products, scale operations and enter global markets.
Kerala currently has more than 9,200 startups employing over 76,000 people. While acknowledging this achievement, Satheesan stressed that the success of the ecosystem should be measured by the number of startups that grow and succeed rather than by registrations alone.
He said the state must move beyond startup creation and focus on helping promising businesses scale up.
100 Deep-Tech Companies Worth ₹100 Crore Targeted
S. Suhas, Special Secretary, Electronics and IT Department, said Kerala aims to develop at least 100 deep-tech companies with valuations of ₹100 crore or more.
He highlighted the need to provide growth-oriented startups with stronger support, wider market access and a more structured innovation ecosystem.
The government also plans to connect initiatives such as Mission Samudra and the Silver Economy with the startup ecosystem, creating new opportunities for innovation.
The Chief Minister also proposed leveraging the experience and mentorship of senior citizens to support entrepreneurs, alongside strengthening research institutions, incubation networks and industry-academia partnerships.
Kerala Targets Global Investment and Innovation
Industries, IT, Future Technologies and Startup Department Minister P.K. Kunhalikutty said the government’s vision is to position Kerala as a global destination for investment and entrepreneurship.
He highlighted emerging technologies, particularly artificial intelligence, as key areas of focus and assured that the government would take steps to ensure startups do not face funding or mentorship shortages.
Belgian Ambassador Sophie Karlshausen expressed confidence in stronger partnerships between Kerala’s startup ecosystem and European innovation networks.
KSUM Announces ₹18 Crore Investment in MistEO
During the inaugural event, Kerala Startup Mission announced an investment of ₹18 crore in Thiruvananthapuram-based climate and atmospheric data analytics company MistEO. MGF Kavach and SeaFund are also participating in the investment.
KSUM also exchanged Memorandums of Understanding (MoUs) with the State Department of Social Justice, PhonePe, Tata Elxsi and the National Cadet Corps to strengthen collaboration across different sectors.
Huddle Global 2026 Brings Together the Startup Ecosystem
The three-day Huddle Global 2026 provides startups with a platform to showcase innovations, raise capital, find business partners and connect with mentors and investors.
The event features panel discussions, an AI Film Festival, product showcases, a GCC leaders’ roundtable, exhibitions, business networking and mentoring sessions.
The dedicated investment platform for startup founders brings together 76 venture capital investors and more than 50 angel investors.
The event is expected to feature:
- 4,000+ startups
- 200+ prominent personalities
- 300+ startup mentors
- 200+ corporate organisations
- 150+ exhibitors
- 150+ investors
- 300+ prominent speakers
With its focus shifting towards funding, deep-tech innovation and global expansion, Kerala aims to transform its startup ecosystem into a stronger base for high-growth businesses and globally competitive companies.
