According to a recent study, Kerala created a startup ecosystem valued at $1.7 billion in 18 months till the end of 2023, which is five times more than the global average during the period.
Ecosystem value is a measure of economic impact, calculated as the value of exits and startup valuations.
The Global Startup Ecosystem Report (GSER) 2024 was released at the London Tech Week by the US-based Startup Genome and the Global Entrepreneurship Network.
While Kerala tops India’s startup ecosystems as per the GSER-2024, the other states to make it to the list are Telangana, Tamil Nadu, and Karnataka.
The GSER-2024 is powered by the world’s most quality-controlled dataset on startup ecosystems.
The report pointed out that while the worldwide average growth was 46 per cent during the period under review, Kerala’s startup ecosystem clocked 254 per cent compound annual growth from July 1, 2021, to December 31, 2023, compared to the corresponding period ending in 2021.
Kerala was also ranked fourth among Asia’s startup ecosystems in the ‘Affordable Talent’ category that measures the ability to hire tech talent, while the state is in the top-30 list when it comes to the ‘Performance’ of the startup ecosystems.
Chief Minister Pinarayi Vijayan said the state is building on its dynamic startup ecosystem that has been driving the forefront of transformative innovations.
“We are now pivoting towards Deep Tech, investing in talent and infrastructure to nurture groundbreaking startups in advanced technologies,” the CHief Minister said.
Startups in Kerala raised $33.2 million (Rs 227 crore) in 2023, marking a 15 per cent increase from the previous year.
Likewise, software exports reached $2.3 million in 2022-23, prompting Kerala to aim for a 10 per cent share in the country’s IT exports, besides creating five lakh new jobs.
The CEO of Kerala Startup Mission (KSUM), Anoop Ambika, said that no other state in the country enjoys similar government support as Kerala.
“Our mission is to take Kerala’s startup growth to the world average in the next five years,” said Ambika.
KSUM, which was established in 2006 under the Kerala government, works for entrepreneurship development and incubation activities in the state.