Kerala Tops Start-up Destinations of the Country: Report The prospering ecosystem of Kerala has 2200 startups, surpassing its neighbouring states-Hyderabad and Chennai

By Entrepreneur India Staff

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


Kerala has emerged as one of the top destinations for start-ups, according to a new report released on Saturday by digital media platform Inc42 and The Indus Entrepreneurs (TiE) Kerala.

What Makes Kerala an Ideal Destination?

What makes Kerala the perfect destination for sowing seeds of Start-up development? "Kerala's per capita income is 60 per cent higher than India's average. Moreover, it receives the largest remittances from abroad. Coupled with 100 per cent literacy and a social structure where many Keralites want to come back and work from their hometown," says Pankaj Sharma, Co-founder and Advisor of Log 9 Materials (based in Kochi, Kerala).

He also added that due to the low cost of living and availability of good talent pool Kochi ecosystem might provide the work-life balance and a capital efficient operative model for early-stage startups.

An Emerging State for Start-ups & Entrepreneurs

When it comes to spearheading start-up initiatives, Kerala is one state whose example other states must take. The state government setup the Kerala Start-up Mission (KSUM) in 2014 to fuel entrepreneurship development and incubation activities. It provides a platform to budding entrepreneurs from all walks of life and communities-students, college student and start-ups themselves- to fulfill their entrepreneurial dreams.

According to the report, Kerala is a flourishing ecosystem of 2200 start-ups and has recorded an impressive annual growth rate of 17 per cent since 2012. The state is ahead of its neighbouring states such as Hyderabad and Chennai that have 1940 and 1520 start-ups respectively.

According to the report, there are 47 funded start-ups in the state that have raised $89 million till date. 13 start-ups received funding this year amounting to $44 million. The state is not just a prospering start-up state but also has a network of 80 investors in the state, more than 40 incubators.

While metropolitan cities like Delhi, Mumbai and Bangalore were always seen as game changers of entrepreneurship, Kerala is proving to be the underdog. Backed with strong innovation and development infrastructure, the state has the potential to go miles.

Related Topics

Starting a Business

7 Lessons I Learned From Selling a 6-Figure Blogging Business

Here are a few critical lessons from my experience building and selling a successful blogging business.


If You Want People to Follow You, Stop Being a Boss — 8 Steps to Truly Effective Leadership

Understand the key differences and embark on the journey from boss to leader with these eight vital steps. This article unveils how to inspire and lead teams with passion and purpose.

Side Hustle

Anyone Can Start a Passive Income Side Hustle For Easy Money — But Only If You Know These 5 Essential Tips First.

The rise of digital automation technology has made starting a passive income side hustle easier and more accessible than ever before.


This Unique Social Startup Helps in Offsetting Carbon Footprint

Verdoo, a free online tool, helps consumers fight climate change through online shopping

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.

News and Trends

The Relevance Of MRP In Modern India

There have been longstanding debates in the country about the efficacy of MRP