Kerala’s startup ecosystem has achieved a remarkable milestone. It has reached a valuation of $1.7 billion and in just a period of 18 months by 2023-end. The figure is impressive and is five times higher than the global average growth rate during the same period. Details were revealed by the Global Startup Ecosystem Report (GSER) 2024, which was released at the London Tech Week organized by Startup Genome and the Global Entrepreneurship Network.
Ecosystem value mainly measures the economic impact through exits and startup valuations. The report highlighted the extraordinary growth of Kerala in the segment. The global average growth rate was 46% and that of Kerala was 254%. The period of study was from July 1, 2021 to December 31, 2023.
Kerala has also been ranked as top startup ecosystem in India by GSER-2024. It outpaced other good performing states including Telangana, Tamil Nadu and Karnataka. The state stands out in the ‘Affordable Talent’ category in the world. It ranks fourth in Asia for its ability to hire tech talent. It is on the top list of top 30 for overall performance in startup ecosystems.
Chief Minister Pinarayi Vijayan states that the success is due to dynamic and innovative environment in the state for startups. He emphasized that Kerala is now focusing on Deep Tech. The government is investing in talent and infrastructure. Various strategies for the startups in the state is expected to sustain and accelerate the growth of young companies.
Kerala startups raised $33.2 million in 2023. It was a 15% increase from the previous year. The software exports of the state reached $2.3 million in the 2022-23 period. It shared 10% of India’s IT exports. It also created five lakh new jobs.
