Kerala startups are a Left success story, but can they overcome the scaling hurdle?

What Happened

Kerala hosts over 8,000 startups generating approximately 75,000 jobs in the past decade, according to Kerala Startup Mission data. Educated unemployment declined from 5.3% in 2020-21 to 4.4% in 2023-24, though remaining above the national average of 3.1%. The government supports entrepreneurship through Maker Village, innovation zones, and fund-of-funds schemes. However, startups struggle with scaling beyond early stages. Founders report limited access to large venture capital pools compared to Bengaluru, despite attracting $665 million in funding.

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