Kerala created a startup ecosystem valued at $1.7 billion in 18 months till end-2023, which stands five times more than the global average during the period, according to the 2024 Global Startup Ecosystem Report (GSER).
While the worldwide average growth was 46%, Kerala’s startup ecosystem clocked 254% compound annual growth from July 1, 2021 to December 31, 2023 compared to the corresponding period ending in 2021, says the report.
Ecosystem Value is a measure of economic impact, calculated as the value of exits and startup valuations.
Kerala was ranked fourth among Asia’s ecosystems in ‘Affordable Talent’ that measures the ability to hire tech talent, while the State is on the top-30 list when it comes to the ‘Performance’ of startup ecosystems across the continent, according to the GSER.
The State emerged among the top 20 Asia ecosystems in the ‘Bang for Buck’ category that measures the amount of runway tech startups acquire on an average from a venture capital round. It is also in the Top 35 ecosystems of the continent in ‘Knowledge’ that measures innovation through research and patent activity and ‘Funding’ which measures innovation through early-stage funding and investor’s activity,
The GSER-2024 analyzed data from over 4.5 million companies across 300-plus entrepreneurial innovation ecosystems, providing new insights and knowledge about startup trends around the world. It provides ranking up to the Top 40 global ecosystems, emerging ecosystems and an expanded regional ranking.
While Kerala tops India’s ecosystems as per GSER-2024, the only other states in the country to make it to the report are Telangana, Tamil Nadu and Karnataka.
A pressnote quoting Chief Minister Pinarayi Vijayan said the State was building on its dynamic startup ecosystem. “We are now pivoting towards Deep Tech, investing in talent and infrastructure to nurture groundbreaking startups in advanced technologies,” he pointed out.
The pressnote said startups in Kerala raised $33.2 million (₹227 crore) in 2023, marking a 15% increase from the previous year. Software exports reached $2.3 million in 2022-23, prompting Kerala to aim for a 10% share in the country’s IT exports, besides five lakh new jobs.
Anoop Ambika, Chief Executive Officer, Kerala Startup Mission (KSUM) said the State hoped to accelerate its startup growth to the world average in the next five years.
GSER-2024 also makes a mention of the introduction of the Kairali AI Chip, the State’s first AI processor by the Kerala Digital University in January this year and the initiative of a Thiruvananthapuram- based school in launching India’s first generative AI robot teacher named ‘Iris’ that is capable of teaching multiple subjects in English, Hindi and Malayalam.
