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Karnataka govt offers funds worth $57M for startups


Startup Karnataka, the Karnataka Government’s startup initiative has released a “booster kit” (pdf), a host of packages ranging from cloud, internet, telephony, software, payment gateway, finance and funding, incubation, marketing, tax and patent incentives and accounting services. Startup Karnataka states that the packages are subject to modification based on its agreements with Karnataka Biotechnology and Information Technology Services (KBITS) and the partner companies.

Interestingly, the initiative also has the following funds worth Rs 385 crore or $57 million overall:
The Karsemven Fund is worth Rs 100 crore and startups under semiconductor, electronics system design & manufacturing (ESDM), Embedded Systems and related sectors.
The Kitven-3 (BioVenture Fund) is wroth Rs 50 crore and covers sectors: biotechnology, life sciences and related fields.
– The Idea2PoC fund is worth Rs 10 crore and covers all technology sectors.
– Another Idea2PoC fund is worth Rs 2.5 crore and specialises in agriculture.
– The third Idea2PoC fund is worth Rs 2.5 crore and deals in tourism.
– The Karnataka Fund of Funds is worth Rs 200 crore and valid across all sectors.
– The government sponsored AVGC Venture Fund is worth Rs 20 crore for MSMEs in sectors like animation, visual effects, gaming and comics
– The Channelizing Innovation for Social Impact fund is worth Rs 15 crore which will be used for 5 challenges every year. Winners will qualify for incubation at Government of Karnataka supported incubators.

Tax and marketing incentives for startups:
– Reimbursement of VAT/CST paid in Karnataka up to a maximum of Rs 50 lakh turnover by incubated startup companies within a period of first 3 years of being incubated.
– Reimbursement of Service Tax paid by startups incubated in Government of Karnataka supported incubators and CIFs whose annual turnover does not exceed Rs 50 lakh for the first 3 years.

Tax and marketing incentives for incubators:
– VAT & CST on goods supplied to the incubator will be reimbursed
– Service Tax reimbursement on services provided by the incubator till the incubator becomes DST certified.

Patent incentives for domestic and international filing:
– The cost of filing of patent application will be reimbursed to Karnataka startup companies up to a limit of Rs 2 lakh per Indian patent awarded.
– Foreign Filing Reimbursement for foreign patents on a single subject matter, up to Rs 10 lakh to Karnataka startup companies.

Other services in the kit:

IBM: Offers enterprise cloud platforms and services for free from Infrastructure as a Service (IaaS) and Platform as a service (PaaS). This will be worth maximum $10,000 or $1,000 per month of free platform credits based on eligibility.
Digital Ocean: Will offer its cloud infrastructure, hardware servers, developer tutorials and round the clock tech support. It will also give a one time credit of $100 for all companies under the Government of Karnataka (GoK) Startup Cell and will be valid for a year.
Amazon Web Services: Credits of up to $3,000 provided the company does not use credits from any other partner accelerator.
Microsoft BizSpark: Free Azure cloud services worth $750 per month for 3 years which is $150 per month for up to 5 developers.
Keonics: Enterprise storage DS8870 and IBM Mainframe zBC12 infrastructure for proof of concept testing for up to 90 days.

Virtual telephony and internet:
mGage: 1:1 SMS, voice, e-mail & OTT engagement between brands and mobile customers with real time insights. Includes free 500 SMS/emails and initial support for integration.
Knowlarity: Free access to its virtual receptionist for 6 months, and renew at 20% discount for the next 6 months.
Exotel: Credit worth Rs 4,500 Credits valid for 6 months.
Ozonetel: Free DID number for 6 months with a maximum 3 extension numbers. The DID number comes with free 1,000 minute per month usage for outgoing calls.
BSNL and Airtel: Are offering 10-55% discounts on 512 Kbps to 100 MBps internet plans, or discounts on MPLS VPN, broadband, Point to Point Leased Line, fiber to home and VPNoBB/VPNoFFH plans.
Vodafone: Offers discounted rates for internet on 1-10 mbps plans.

Testing and software tools:
CanvasFlip: 6 months of premium subscription and 20% discount on renewal plans. CanvasFlip lets developers capture feedback like screen videos, heatmap, dropoff analytics etc.
FlexingIT: Offer includes 3 free project postings on MyFlex™ Prepaid pricing plan and post visibility on Flexing It™ platform. FlexingIT is a curated talent platform listing consultants, advisors & subject matter experts.
Headspin: Free access to the testing platform worth $10,000 or Rs 6.7 lakh for 6 months.
Aerospike: Enterprise license for NoSQL Database for 90 days, including admin and developer training for 2 people and 8 hours of remote consulting and support for cluster sizing and benchmark tool support for implementation with no data limits at $4,995.

Payment gateways and finance:
Citrus: 0% TDR per transaction for up to Rs 15 lakhs or 1 year. 0 AMC.
Razorpay: Instant activation in 2 working days (provided compliance to KYC); 75,000 free credits (0% TDR till the total incoming transactions upto that amount).
Instamojo: 50 Transactions over a period of 2 months
ProfitBooks: Professional plan worth Rs 6,000 free for a year.

Incubation facilities: At GoK Nasscom Startup Warehouse 10,000 Startups, GIFTS Incubator-91 Spring Board, GoK Mobile 10x –IAMAI, GoK Bangalore Bioinnovation Centre, Keonics and IBAB.

Mentorship & networking facilities from Startup Karnataka Open House, Startup Karnataka Policy Workshop, Startup Karnataka Pitch, mentors including TiE, NASSCOM, IKP, IAMAI, and participation in local networking and mentoring events conducted by Karnataka Startupcell and partner incubators across the state.

Subsidised Finance, accounting and legal advisory services.


Our Karnataka Government coverage.

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