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Innovation Grant Scheme

Innovation Grant Scheme

Innovation Grant Scheme

Innovation Grant Scheme is organized by Kerala Startup Mission (KSUM) which offers innovation grants to students and innovators. Early-stage funding is incredibly challenging for innovators as Angel Investors and Venture capitals; Government has introduced this scheme to solve the challenges faced by entrepreneurs and startups. The key objective of the scheme is to promote entrepreneurship and innovation in the state. In this article, we will look at the Innovation Grant scheme in detail.

Objective

Aim of the innovation Grant Scheme is to solve the early-stage funding challenges faced by the entrepreneurs and startup by providing innovation grants.

Financial Assistance

The following types of grants are provided to innovators under the Innovation Grant Scheme.

Idea Grant

This type of grant is provided for startups or students who have a Prototype or minimum viable product (MVP) to develop the final version of MVP. As part of the Innovation Grant Scheme, an amount of Rs.2 lakhs is provided for the idea.

Grant for Production

This type of grant is provided to launch the products of startups. An amount of Rs.7 lakhs will be granted to every idea.

Scale-up Grant

The eligible startup will get Rs.12 lakhs per idea to ramp up the production or sales.

R&D Grant

Research and Development Grant will be given to highly promising hardware or deep tech Startups with a working prototype which requires to be developed into a final product through extensive R&D. The R&D grant amount is Rs.30 lakhs per startup.

Eligibility Criteria

The eligibility criteria to avail the financial assistance under the Innovation Grant Scheme are explained in detail below:

For Idea Grant

  • A student studying in Kerala
  • An innovator based out of Kerala
  • A startup legally registered with DIPP Certification in Kerala

For Production & Scale-up Grant

  • A startup legally registered with DIPP Certification in Kerala

Margin Money Details

The startups need to pay a Margin Money to the project to build innovative & distinguished products:

Grant TypeMargin MoneyPotential Investors/Supporters
Idea Grant10% of the proposed costAlumni, Friends or Family
Production Grant20% of the proposed costFounders or Investors
Scale-up Grant50% of the proposed costInvestors or Revenues

Note on Idea Day

Applications for the Innovation Grant Scheme will be invited through the Idea Day event that is conducted by Kerala Startup Mission (KSUM).  Applicants have to pitch their ideas in front of an elite panel for evaluation. The ‘ideas’ that are shortlisted will be provided with a seed funding up to 12 lakhs. The 10th Idea Day of KSUM is called as the Idea Fest.

Scale-up Fest

Scale-up Fest is being organized by Kerala Startup Mission exclusively for a startup in the revenue stage. Selected startups can get a grant of up to Rs.12 Lakhs for ramping up product sales. To avail the financial amount, the startup should have a revenue or investment inflow of at least Rs.12 Lakhs in the last 6 months

Documents Required

Financial assistance under the Innovation Grant Scheme will be disbursed in tranches. The half of the assistance will be disbursed in the first tranche after collecting documents and the remaining amount will be disbursed after the innovator submits an interim report with utilization certificate. The list of documents to be submitted is as follows:

Documents for First Tranche

The startups with seed loan sanctioned need to submit a fund utilization plan along with project milestones. The fund utilization plan for the first tranche should be clearly stated along with the interim outcomes expected to be achieved.

Startups

  • Address proof of founder signing the agreement
  • Company account passbook
  • Rs.200 worth Stamp paper in the name of the company

Student Innovators

  • Passbook of IEDC account
  • Address proof of Nodal Officer
  • College ID card copy of Nodal officer
  • Stamp paper (Rs.200 worth ) in name of IEDC
  • Address proof of Student
  • College ID card copy of Student

Individual Innovators

  • Stamp paper (Rs.200) in name of Individual
  • Address proof of Individual
  • Acceptance letter from a member of IEDC or incubator
  • Scanned copy of IEDC or incubator account passbook

Documents for Second Tranche

Release of the second tranche will be subject to verification of the following documents:

Startups

  • Audited Utilization Certificate of the initial tranche
  • Progress report of the project

Students

  • Utilization Certificate signed by the student and approved by IEDC Nodal officer.
  • The idea grants released should be reflected in the audited BS/I&E accounts of the IEDC Progress report of the project

Innovators

Utilization Certificate signed by the innovator and approved by the in-charge of the IEDC/Incubator.

  • The idea grants so released should reflect in the audited BS/I &E accounts of the IEDC/Incubator
  • Progress report of the project

Innovation Grant Scheme Application Procedure

Kerala Startup Mission will call for applications for Innovation Grant Scheme (idea, production and scale-up grant) once a quarter. The calendar of Innovation Grant Scheme future processes will be published.

  • Once the application is open, the notifications will be published through the official website of KSUM, social media and print media channels.
Image 1 Innovation Grant Scheme
Image 1 Innovation Grant Scheme
  • The interested students, innovators, and startups need to access the official website of KSUM to apply Kerala Startup Mission.
Image 2 Innovation Grant Scheme
Image 2 Innovation Grant Scheme

Note: This page also provides an option to subscribe to the email updates regarding future Idea Days.

  • The applications received by Kerala Startup Mission will be shortlisted by the panel experts. The shortlisted startups have to submit a 2-minute video introduction of the product along with the pitch deck and fund utilization plan.
  • The shortlisted startups will pitch to the Screening Panel, who will recommend for funding if the idea is worth pursuing.
  • The applications for Innovation Grant scheme will be shortlisted based on the following criteria:
    • Idea usefulness (40%)
    • Solution value (40%)
    • Market potential (20%)
  • The top 10 ideas in each sector will be invited for Idea Day during which a Screening Panel will listen to the idea presentations, evaluate the merit and accordingly recommend the ideas for funding.

Shortlist Announcement

  • Innovators selected for idea presentation will be notified through official e-mail at least two weeks before the Idea Day is scheduled.
  • The selected innovators are expected to confirm the participation within 5 days by submitting a 2-minute product introduction video, the pitch deck and the fund utilization plan.
  • The 2-minute product introduction videos and presentations submitted by the startups will be shared with the Screening Panel members one week in advance.
  • The exact financial assistance will be finalized based on the fund utilization plan submitted by the innovator and Technical review will be done by experts in the concerned technology.
  • The recommendations of the Screening Panel will be submitted to the CEO, KSUM for approval. Grants above 5 Lakhs will need to be approved by IT Secretary, Government of Kerala.

Disbursal of Funds

As stated above, the Innovation grant will be disbursed in milestone-based on tranches. Half of the grant amount will be disbursed in the first tranche after collecting necessary documentation and the remaining amount will be disbursed after the innovator submits interim report and utilization certificate.

Note: If the Idea grant sanctioned is less than Rs.50,000, it will be disbursed as a single tranche.

  • Ideas selected through Idea Days will be released a maximum of Rs.2 Lakhs in the funding (first tranche).
  • Ideas selected through Scale-up Fest will be released a maximum of Rs.6 Lakhs in the first tranche

Agreement for First Tranche

  • After verifying the details and documents, KSUM will execute an agreement with the innovator or startup. The innovator/startup need to complete the agreement by visiting the nearest KSUM office (Trivandrum, Kochi or Kozhikode).
  • Grant will be released within a week of signing the agreement as account payee cheque.

Release of the Second Tranche

KSUM will assess the progress of the startup before the disbursement of the second tranche of the Innovation grant and after the end of the project. The startups have to submit the interim progress update and utilization certificate to initiate the release of the second tranche of the fund.

Mode of Payment

  • The grant will be disbursed through account payee cheque or having account transfer to the treasury.
  • For student innovators, the innovation grant will be transferred to the IEDC bank accounts of their respective colleges.
  • Startups registered as legal entities with DIPP certification will receive the funds to the company bank accounts.
  • Individual innovators will need to register with an IEDC or incubator operating in Kerala. The grant will be disbursed to the IEDC’s or incubator’s bank account. The IEDC or incubator will subsequently transfer the grant to the individual innovators.

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.

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