Ker­ala ven­tures to get `1K cr boost

DNA (Daily News & Analysis) Mumbai Edition - - FRONT PAGE - —PTI

Kochi: Ker­ala is poised for a far stronger start-up ecosys­tem, as four in­vest­ment funds have planned to pump in over Rs 1,000 crore in new busi­ness ven­tures in the next four years.

Uni­corn In­dia Ven­tures, Exseed Elec­tron Fund, In­dian An­gel Net­work and Spe­ciale In­cept Fund are the fi­nan­cial en­ti­ties the govern­ment has se­lected through a ten­der, ac­cord­ing to sec­re­tary, Ker­ala elec­tron­ics and IT depart­ment M Si­vasankar.

Since the pact man­dates in­vest­ing 25% of the vol­un­teered amount in the next four years, the state is guar­an­teed with a min­i­mum in­vest­ment of Rs 300 crore by 2022 fis­cal, he said on the side­lines of the event ‘Seed­ing Ker­ala’.

The fourth edi­tion of the event, or­gan­ised here by Ker­ala Start-up Mi­sion (KSUM), in as­so­ci­a­tion with in­vest­ment plat­form Letsven­ture, brought to­gether the high net­worth in­di­vid­u­als (HNIS) from the state in a bid to pro­vide them op­por­tu­ni­ties to in­vest in start-ups.

Si­vasankar, ad­dress­ing a me­dia con­fer­ence, said the Ker­ala govern­ment has adopted the Fund of Funds model to in­vig­o­rate an­gel and ven­ture cap­i­tal funds, thus fa­cil­i­tat­ing hold­ing of a port­fo­lio than of other in­vest­ment funds rather than in­vest­ing di­rectly in stocks, bonds and other se­cu­ri­ties.

The state, on its part, pro­vides an an­nual in­vest­ment of Rs 15 crore.

The first leg of the 2017-launched ‘Seed­ing Ker­ala’ saw en­cour­ag­ing re­sults, prompt­ing the govern­ment to aim at rais­ing in­vest­ments worth Rs 60 crore.

The state got 34 Ex­pres­sions of In­ter­est, from which four funds were in­vited to the KSUM en­deav­our on de­vel­op­ing the start-up ecosys­tem, he said.

Among the four, Exseed would in­vest solely in star­tups based in the fields of space and IT, Si­vasankar said.

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