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?
The Scaleup Seed Fund is an initiative by the Government of Kerala, implemented through the Kerala Startup Mission (KSUM). It provides financial support, primarily as collateral-free debt, to revenue-stage startups focused on expanding and commercializing innovative, technology-based products.
What is the maximum funding amount available?
Eligible startups can receive financial assistance of up to ₹25 lakh through this scheme.
Is there an application deadline for this fund?
No, the application process for the Scaleup Seed Fund operates on a rolling basis, meaning applications are always open.
Who is eligible to apply for the Scaleup Seed Fund?
Eligible applicants must be Private Limited companies registered in Kerala, possess DPIIT startup recognition and a KSUM Unique ID, and be developing an innovative product or technology. They should also demonstrate significant revenue or prior investment traction.
Does my startup need DPIIT recognition to apply?
Yes, it is a mandatory requirement for applying startups to have obtained DPIIT (Department for Promotion of Industry and Internal Trade) startup recognition.
Does the Kerala Startup Mission take equity in my company?
No, the Scaleup Seed Fund provides support primarily as collateral-free debt or through instruments like Convertible Compulsorily Debentures (CCDs) and Compulsorily Convertible Preference Shares (CCPS), which means KSUM does not take equity in your company.
What are the revenue requirements for eligibility?
Startups must have generated at least ₹25 lakh in revenue from their product over the last four quarters, or secured at least ₹25 lakh in investment from an Angel network or VC firm. Additionally, a minimum of ₹5 lakh in revenue is required in the quarter immediately preceding the application date.
What types of businesses are not typically supported?
The fund generally does not provide support to service-based startups or Small and Medium-sized Enterprises (SMEs) primarily engaged in trade and commerce, as its focus is on product or technology-driven innovation.
How can I apply for the Scaleup Seed Fund?
You can apply by submitting an online business profile and a seed proposal to the Kerala Startup Mission. Further details and the application portal can be found on the KSUM website.
Who offers Scaleup Seed Fund?
Scaleup Seed Fund is offered by Kerala Startup Mission, a government body. It is provided as non-dilutive funding.