The Karnataka Government Has Funded a Total of INR 60 Crore in 263 Startups

Nitin Konde, Apoorva Bajj

Jul 26, 2024 — 3 min read

The Karnataka Government Has Funded a Total of INR 60 Crore in 263 Startups

According to a report presented by the Department of Electronics, IT, BT, and S&T, Government of Karnataka, 45 out of India's 112 unicorns are based in Bengaluru, making it a leader in the startup movement. According to the Bengaluru Innovation Report 2024, the city is known as an innovation hub that encourages revolutionary developments in areas such as AI, biotech, and fintech.

The Bengaluru startup ecosystem is strongly supported by top IT businesses, research institutes, and capital allocators. It's a place where collaboration and competition are encouraged. As a result, both the economy and technology are booming.

Over 14,000 startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT) and over 4,000 active investors in tech startups call Karnataka home. According to Priyank Kharge, who is the minister for the Department of Electronics, IT, BT, Rural Development, and Panchayati Raj in the Karnataka government, the existence of 45 tech unicorns further solidifies the state's image as a top hub for technology and innovation.

According to him, the state government has launched several programs to help entrepreneurs at different points in their development. Over 980 businesses have been awarded grants of up to INR 50 lakh through the Elevate program, which is an initiative that helps entrepreneurs go from idea to proof of concept. Women business owners and deep tech solutions are two areas that will receive enhanced attention in the coming future.

Initiatives That Are Driving the Growth

To address the wide range of startup funding requirements in the state, two funds have been established: the Beyond Bengaluru Cluster Seed Fund and the Kitven Funds. To support student-run initiatives, the NAIN program has set up around fifty innovation centers in IT institutions outside of Bengaluru. Beyond Bengaluru and the Karnataka Digital Economy Mission are two more important programs that are helping to make the state a center for information technology.

Major software companies like Amazon, Microsoft, Meta, and Google have their research and development centers in Bengaluru, according to Prashanth Prakash, who is a partner at the venture capital firm Accel and the head of the Startup Vision Group for the Government of Karnataka. According to him, businesses like Zerodha, CRED, PhonePe, Flipkart, and Razorpay—all unicorns—have emerged from the city.

Sahil Chopra, AVP, Growth & Marketing, Inflection Point Ventures satated, "A report from 24th July shows that Karnataka's Department of Information Technology and Biotechnology gave over ₹60 crore to 263 start-ups in 2022 and 2023. The Department of Electronics IT BT, and S&T released the "Bengaluru Innovation Report 2024." It stated that women ran 24% of these start-ups, and 35% were outside Bengaluru. As stated above, out of the 263 funded start-ups, women entrepreneurs led 47, and 119 came from tier II and III towns in the state. This shows how Karnataka wants to include everyone. These start-ups work on new tech in many up-and-coming fields."

"This decision of the government to support these startups is praiseworthy and shows a forward-looking approach to growing the economy and advancing technology. The big financial boost proves the government wants to support new ideas and business creation in the state. What stands out is how their focus is on including everyone," he added further.

Recognizing the Hard Work and Effort

The Government of Karnataka's Department of Electronics, IT, BT, and S&T also hosted a special ceremony to celebrate the winners of Elevate, their flagship Grant-in-Aid program. During the fiscal years 2023 and 2024, the initiative's four schemes—Elevate Kalyana Karnataka, Amrita Startups, and Elevate Unnati—supported entrepreneurship and innovation in the Kalyana Karnataka region, OBC entrepreneurs, and startups promoted by SC and ST entrepreneurs, respectively. In addition, the Elevate program helps entrepreneurs in the state who are looking for seed money to create a prototype, plan their entrance into the market, and eventually scale up.