Scaleup Seed Fund — Frequently Asked Questions
Answers to the questions founders most often ask about Scaleup Seed Fund — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
What is the Scaleup Seed Fund?
It is a Government of Kerala initiative run by Kerala Startup Mission that provides collateral-free debt up to ₹25 lakhs to revenue-stage tech startups registered in Kerala, enabling them to scale and commercialise innovative products.
Who can apply for this fund?
Eligible entities must be Private Limited companies registered in Kerala with active MCA status, have DPIIT startup recognition and a KSUM Unique ID, and be focused on product or technology innovation. Service startups and trading businesses are generally not eligible.
What is the maximum funding amount?
Each startup can receive up to ₹25 lakhs.
What revenue or investment milestones are required?
The startup must have either generated at least ₹25 lakhs in product revenue over the last four quarters, or secured ₹25 lakhs in investment from an angel network or venture capital firm. Additionally, at least ₹5 lakhs in revenue must have been earned in the quarter just before applying.
Does KSUM take equity from my startup?
No. The fund provides debt through instruments like CCDs or CCPS, which may have conversion rights but is not equity investment at the time of funding. There is no direct equity dilution from the debt portion.
Is DPIIT or MSME registration compulsory?
DPIIT startup recognition is required. MSME registration is not needed for this scheme.
How do I apply?
The application is submitted online through KSUM's portal with a Business Profile and a Seed Proposal. Shortlisted candidates undergo a virtual call and final pitch session.
What is the application deadline?
Applications are accepted on a rolling basis; there is no fixed deadline.
What can the funds be used for?
Funds can be used for product enhancement, business expansion, marketing activities, and acquiring necessary licenses or certifications.
What happens after I receive funding?
Funds are released in installments tied to agreed milestones. KSUM also provides mentorship and infrastructure access to help startups grow and attract future investments.
Who offers Scaleup Seed Fund?
Scaleup Seed Fund is offered by Kerala Startup Mission, a government body. It is provided as non-dilutive funding.