Financial assistance

100 startups, MSMEs in Kerala to get financial aid of Rs 2 crore each – The New Indian Express

By Express press service

KOCHI: The announcement to provide funds to the tune of Rs 2 crore per applicant as financial assistance through KSIDC under the Chief Minister’s Special Assistance Scheme for at least 100 startups and MSMEs has been a boon for the ecosystem of the state, believe experts in The sector.

“The budget is a consolidation of the fact that the ecosystem is firmly established not only in the state but also nationally,” said SR Nair, mentor, startups. According to him, there are three stages of growth for a startup: start-up, stand-up and scale-up.

“In Kerala, the majority of startups are between start-up and stand-up levels. For those who are at the stand-up level, they need a huge amount of funds to reach the scaling stage. Normally, these funds come from angel investors and venture capitalists. But the process is very long and time-consuming. So, the announcement to provide Rs 2 crore per applicant under the scheme for startups that have reached the scaling level will be of great help to them,” he said.

The budget shows that the government recognized the need for a startup to grow, he added. “The government also doesn’t want startups to stay in Tier I cities. Therefore, it has allocated funds to set up startup incubation facilities in small towns,” Nair said.

“The budget also shows the government’s intention to move into the manufacturing sector. He wants startups in the state to turn to manufacturing. But its success is doubtful as the prospects for manufacturing in the state are very poor. However, cluster-based hardware manufacturing SMEs are a possibility and the government can try it,” Nair said.