KDEM To Set Up Rs 75 Crore Seed Fund To Boost Karnataka Tech Start-Ups

Mysuru, Aug 26 (KNN) The  Karnataka Digital Economy Mission (KDEM) along with the industry partners have decided to set up a Rs 75 crore seed fund to encourage tech-based start-ups in state.

The Rs 75 crore seed fund will be set up for three clusters: i) Mysuru, ii) Hubballi-Dharwad-Belagavi and iii) Mangaluru as part of the 'Beyond Bengaluru initiative'.

"This fund is a first-of-its-kind SEBI Category-I fund with a focus on emerging tech clusters, which will be a game-changer for the Indian startup ecosystem," said a statement from KDEM.

KDEM during the industry roundtable held on Friday received Letters of Intents (LoIs) from industrialists for the Mysuru cluster seed fund.

Of the Rs 25 crore seed fund for the Mysuru cluster, Rs 8 crore is from the Karnataka government and the remaining amount is from financial institutions, venture capitalists, angel investors and others. 

"This will not only facilitate startups with their growth needs but also connect with global partners for their business growth. It will attract more investments to the cluster and drive greater employment locally," the statement added.

Sanjeev Gupta, CEO of KDEM, said, "'Beyond Bengaluru' is becoming a reality. In the last 18 months, we have facilitated over 45 companies in setting up their operations in these clusters. Our most recent success is supporting Kaynes Technologies in their expansion plans and we are hopeful and prepared for greater investments to follow."

As part of the 'Beyond Bengaluru initiative', Mysuru is growing into an emerging tech hub in India, serving and housing global brands in the cluster.

Over the last 18 months, Mysuru has attracted many global companies such as IBM, Travancore Analytica, Nagaro, HHS, Proxelera, Forefront Healthcare, GloTouch Auto-Asam, etc.  (KNN Bureau)