Karnataka Budget 2022-23: Seed funding for startups gets Rs 12 crore top-up

This announcement comes at a time when Karnataka is producing many unicorns (a startup with $1 billion valuation).

Published: 05th March 2022 05:37 AM  |   Last Updated: 05th March 2022 05:37 AM   |  A+A-

Rs 2000, cash,money

T(File Photo)

Express News Service

BENGALURU: In order to promote and enhance the startup and technology ecosystem across Karnataka, Chief Minister Basavaraj Bommai, in his budget speech, said Beyond Bengaluru Cluster Seed Fund for 
startups would be established in Mysuru, Mangaluru and Hubballi. These will be on the lines of cluster managed by Karnataka Digital Economy Mission (KDEM) at an expenditure of Rs 20 crore. He also said that a grant of Rs 12 crore would be provided for this project in the current year.

This announcement comes at a time when Karnataka is producing many unicorns (a startup with $1 billion valuation). Stressing on Karnataka’s startup-friendly ecosystem, Bommai said there are 34 startups in Bengaluru with a net worth of over $1 billion. Karnataka has over 13,000 technology startups and many of them are focused on deep-tech and Artificial Intelligence (AI).

Recently, IT&BT Minister Dr CN Ashwath Narayan said that the State Government would provide seed funding of Rs 50 lakh for 200 startups. Beyond Bengaluru, an initiative of KDEM, is aimed to enhance the growth in the IT/ITeS, BPO, Electronic System Design Manufacturing (ESDM) and Telecom sector industries located in emerging technology clusters of Karnataka.

Bommai also said that Karnataka has secured fourth place in the country in the ESDM sector, as over 300 manufacturing units contribute nearly 10% of the overall production in the country’s electronics and services.

Also, with an aim to promote women entrepreneurship, women-led start-ups, and to increase the presence of women in business, the chief minister said under the ‘Elevate’ scheme, startups identified by the Karnataka Institutes of Technology would be provided Rs 10 lakh loan through Karnataka State Women Development Corporation.

Apart from these initiatives, Elevate-Kalyan Karnataka will also be organised to select 25 innovative startups in the Kalyana Karnataka region in collaboration with Kalyana Karnataka Region Development Board (KKRDB), he said.

‘Invest Karnataka – 2022’
Bommai also announced that to attract investments to Karnataka, Global Investors Meet ‘Invest Karnataka – 2022’ will be organised from November 2-4, 2022. Meanwhile, Bangalore Chamber of Industry and Commerce president K R Sekar welcomed the budget presented on Friday, and said these initiatives will encourage startups.



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