Karnataka unveils Startup Policy 2025-30, charts roadmap for deep tech decade

As part of National Startup Month, the Department of Electronics, IT & BT, Government of Karnataka, unveiled the Karnataka Startup Policy 2025-2030 at a felicitation event for 146 Idea2PoC ELEVATE 2025 winners at Bengaluru.

The event recognized and rewarded winning start-ups under the flagship ELEVATE program including 103 ELEVATE 2025 winners, 33 ELEVATE Unnati winners and 10 ELEVATE Minorities 2025 start-ups with a total committed grant of INR 38.85 crores.

The felicitation marked another significant milestone in Karnataka’s journey of nurturing early-stage startup’s innovative ideas and strengthening its start-up ecosystem. ELEVATE provides a One-time Grant-in-Aid, of up to INR 50 lakhs to start-ups recognized under this program. In addition, they are given mentoring and incubation support at subsidized rates at Government supported incubation centres to help in product development and validation. Through ELEVATE, Karnataka is enabling entrepreneurs across Karnataka to transform bold ideas into real impact.

The ELEVATE program identifies and supports promising start-ups at various stages of their entrepreneurial journey enabling them to scale sustainably. Karnataka is the first State in India to extend grant-in-aid support to start-ups without taking any equity stake, indicating the government’s progressive and conducive policy towards promising start-ups.

Addressing the gathering at the felicitation ceremony, Priyank Kharge, Minister for Information Technology & Biotechnology and Rural Development & Panchayat Raj, Government of Karnataka, reiterated that the sustained success of the ELEVATE program lies in its mission-mode implementation. “Launched in 2017, ELEVATE has evolved into a powerful enabler for start-ups by providing critical financial assistance, mentorship, and ecosystem support. The program continues to drive technological advancement, job creation, and inclusive economic growth across Karnataka,” he said.

The felicitation event was attended by several eminent dignitaries, including Rizwan Arshad, Member of the Karnataka Legislative Assembly, Shivajinagar Constituency; Dr. Manjula N, Secretary to Government, Department of Electronics, IT, Bt and S&T, Government of Karnataka; Sharath Bachegowda, Chairman, Keonics; and Rahul Sharanappa Sankanur, MD, Karnataka Innovation and Technology Society (KITS).

At the event, Ankush Sabharwal, Founder and CEO, Co-Rover.ai, and Nivedha R M, Founder and CEO, TRASHCON, also shared their start-up success stories, highlighting their entrepreneurial journeys and the role of the ELEVATE programme in enabling innovation and scale. The Department of Electronics, IT & Bt, Government of Karnataka, also facilitated the exchange of a Startup Booster Kit Memorandum of Association (MoA) with PhonePe and STT Global Data Centres, further strengthening industry participation in the State’s start-up ecosystem.

This collaboration aims to provide ELEVATE-supported start-ups with access to critical resources, infrastructure support, and ecosystem enablement through industry partnerships, helping founders accelerate product development, market readiness, and scale. The Startup Booster Kit initiative underscores Karnataka’s approach of complementing government support with private sector expertise to create a holistic growth environment for early-stage enterprises.

ELEVATE Winners profile: Recognizing diversity and innovation
A sector-wise analysis of the 103 ELEVATE 2025 winners highlights the State’s mission in fostering innovation in the State. Of these, 23 start-ups are from agri-tech, biotechnology, food & beverages, and food processing; 19 from consumer electronics, ESDM, and aerospace; and 14 from healthcare and pharmaceuticals. Other awarded start-ups are across sectors such as IT services, education, banking, finance, and allied technology domains.

Under ELEVATE 2025, a total grant amount of INR 25.33 crores will be disbursed to the 103 selected start-ups. Statistics show that 43% of the winners are women-led enterprises, while 43% are based Beyond Bengaluru, reinforcing the government’s commitment to promoting regional entrepreneurship.

The ELEVATE Unnati program, which supports start-ups by the SC/ST community, has awarded 33 start-ups this year with a committed grant of INR 9.52 crores. Notably, 55% of these start-ups are located in the Beyond Bengaluru districts, and 39% start-ups are led by women entrepreneurs.

Similarly, ELEVATE Minorities, aimed at empowering entrepreneurs from Minority communities, recognized 10 start-ups in 2025 with a committed grant of INR 3.65 crores. Of these, 50% are from Beyond Bengaluru, and 20% start-ups are led by women entrepreneurs, further underlining the State’s focus on equitable access to innovation opportunities.

Since its launch in 2017, the ELEVATE program has disbursed INR 287.85 crores as Grant in Aid seed funding to 1,230 start-ups across Karnataka. Of these, 37% are from beyond Bengaluru, while 28% are led by women entrepreneurs — a consistent testimony to the program’s long-term impact and inclusivity. The ELEVATE 2025 felicitation event brought together a wide cross-section of the innovation ecosystem, including start-up founders and co-founders, investors, corporates, policy makers, academia, jury members and ecosystem partners who played a critical role in the multi-stage evaluation process.

At the event, the Government of Karnataka reaffirmed its commitment to strengthening the start-up ecosystem through structured funding, robust mentorship, and enhanced incubation support. “The State will continue to expand ecosystem partnerships, unlock new funding avenues, and foster inclusive growth to further cement Karnataka’s position as India’s premier start-up and innovation hub,” the Minister said.

Karnataka Startup Policy 2025-2030
• The Karnataka Startup Policy 2025–2030 sets the roadmap for the next five years of entrepreneurial growth, positioning the state as a global innovation hub.
• The department has earmarked INR 570.675 cr for the policy.
• The policy aims to establish 25,000 new startups by 2030, with at least 10,000 emerging from Beyond Bengaluru clusters.
• It emphasizes leadership in emerging and transformative technologies including but not limited Artificial Intelligence, blockchain, quantum computing, and sustainability solutions.
• The policy is anchored on seven pillars: funding and grants, incubation and infrastructure, mentoring and skill development, market access and expansion, international collaboration, inclusion and sustainability, and regulatory facilitation.
• It emphasizes inclusivity by supporting women led ventures, grassroots innovators, rural entrepreneurs, and socially impactful enterprises. Under the Government First initiative, startups offering relevant products and solutions will be given the unique opportunity to engage with the Government of Karnataka as their very first customer.
• The policy is designed to support startups through their entire lifecycle, from early ideation and prototyping to global expansion and IPO readiness.

ELEVATE NxT
The ELEVATE NxT program is being launched as a flagship initiative under the LEAP (Local Economy Accelerator Program), reaffirming Karnataka’s leadership in innovation driven industrial transformation.

• This program is designed to nurture startups working at the frontiers of science and engineering, with a strong focus on transformative technologies including but not limited to Artificial Intelligence, Machine Learning, Internet of Things, Blockchain, Augmented and Virtual Reality, Robotics, 3D Printing, Drones, Biotech, Quantum Computing, Advanced Materials, Cybersecurity, Green Energy, and SpaceTech.
• ELEVATE NxT is designed with a transparent grant-in-aid framework that provides milestone based funding and sector aligned mentorship.
• The program is open to DeepTech startups from across India, ensuring that innovators nationwide and contribute to innovation led growth.
• The Government of Karnataka has earmarked ₹150 crores for ELEVATE NxT. Each selected startup will be eligible to get up to ₹1 crore in grant-in-aid support.
• Startups are selected through rigorous rounds of evaluation will receive milestone based funding, sector aligned mentorship, and structured support to ensure their ideas achieve global competitiveness and societal relevance.
• The program ensures that disruptive ideas with global competitiveness and societal relevance are given the platform to thrive.

₹75 crore Beyond Bengaluru cluster seed fund
The Government of Karnataka has launched the ₹75 crore Beyond Bengaluru Cluster Seed Fund, a targeted capital support initiative aimed at accelerating startup growth in emerging innovation clusters across the State.

• The fund has a total corpus of ₹75 crore, with a ₹20 crore (≈27%) commitment from the State Government, and the remaining corpus mobilised through institutional and private participation.
• Phase I will focus on three key clusters—Mysuru, Mangaluru, and Hubballi–Dharwad—with additional clusters to be onboarded in subsequent phases.
• The fund will deploy equity and equity-linked investments ranging from ₹50 lakhs per startup, up to a maximum of 10% of the fund’s investable corpus per investment, in line with SEBI regulations.
• Eligible startups include DPIIT-recognised and Government of Karnataka-registered entities incorporated under The Companies Act, 2013, operating in IT, Electronics Design and Semiconductor Manufacturing (EDSM), Biotechnology, and Animation, Visual Effects, Gaming and Comics (AVGC) sectors.
• The fund will be managed by Karnataka Asset Management Company Pvt Ltd, in collaboration with the Karnataka Digital Economy Mission (KDEM), ensuring professional governance, transparent deployment, and ecosystem-led scaling.
• The initiative is expected to catalyse job creation, enhance export potential, and increase startup density in non-metro regions, supporting Karnataka’s long-term vision of a decentralised and inclusive innovation economy.