Thiruvananthapuram: With an educational background in photonics and aerospace engineering and professional experience in multiple countries, Yedhu Krishnan returned post the Coronavirus pandemic with a plan to build aerospace systems India has long relied on imports for. The vision led the 39-year-old Kannur native to launch his startup ‘Specrule’ in 2022 to develop advanced laser and optical measurement systems for aerospace applications.
“I considered Thiruvananthapuram because it’s home to the Indian Institute of Space Science and Technology (IIST). I get access to labs and student-interns here,” said Yedhu, adding the state’s network of institutes and human resources are useful for a startup, though he could have attracted more seed money in other states.
Specrule is not an anomaly. The state, once seen as a fading presence on India’s investment and startup picture, is slowly moving up the ladder, with policy reforms and by tapping into its infrastructure and institutional network.
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As per the Kerala Startup Mission (KSUM) data, the number of startups registered in Kerala has grown steadily over the past few years—from just 21 in 2016 to 121 in 2017, 277 in 2018, 594 in 2019, and reaching 1,128 by 2024. As of October 2025, more than 7,200 startups are registered in the state, according to official figures. Unofficial statistics, however, put the number to be about 13,600, according to KSUM CEO Anoop Ambika.
This growth, Anoop said, is the compound effect of a change in attitude towards entrepreneurship as well as the state’s changing investment climate.
“Many from the diaspora in the UK, the US, and elsewhere are reaching out with renewed enthusiasm to establish ventures in Kerala. The current geopolitical climate, coupled with the state’s growing (investment and startup) ecosystem, gives them confidence,” he said, adding the state is currently focusing on attracting investment in the knowledge economy, utilising its existing research network, such as Specrule.
As per the States’ Startup Ranking 2022 (which ranks states and Union Territories based on their support to startup ecosystems), released by the Department for Promotion of Industry and Internal Trade (DPIIT) in January 2024, Kerala was listed among the ‘Best Performer’ along with Gujarat, Karnataka, Tamil Nadu, and Himachal Pradesh.
The report noted that the state government has taken several ‘praiseworthy initiatives’, including ensuring institutional support, facilitating events for networking, as well as launching schemes to promote startups that also impact rural areas.
According to the Ministry of Commerce and Industry, India had more than 1.4 lakh startups recognised by DPIIT as on 30 June 2024, with Maharashtra leading with 25,044, followed by Karnataka (15,019), and Delhi (14,734). With 5,782, Kerala was at the ninth place in the list.
Kerala has been continuously working to attract investments, organising multiple sector-specific conclaves and effecting several policy reforms in recent years.
The state issued an industrial policy in 2023, identifying 22 priority areas. An Information Technology policy was also released the same year, aiming to transform the state into an IT hub by 2030 through infrastructural development and skill training.
Anoop said changes in the investment climate and investments from large companies make Kerala an attractive destination for strategic collaborations with startups.
“Traditional IT is becoming outdated. Our goal is to leverage digital science parks, existing talent pools, and science-based ideas to create knowledge and attract companies. Kerala has 125 research institutions forming a strong research network,” he said, adding cities in Kerala offer better quality of life compared to cities in many states that are saturated with companies and traffic.
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Decentralisation & Leap Centres
According to officials, one of the key features that sets Kerala apart is its decentralised approach to promote startups.
For instance, ‘Techgenstia,’ the creator of the indigenous video-conferencing platform Vconsol which is widely used by courts and administrative systems, is based in Cherthala, nearly 32 km away from Kochi. Similarly, Wayanad, considered one of the backward districts, hosts a number of IT startups, including Vonnue Innovations, which employs nearly 100 locals.
“Kerala offers a healthy decentralised model of development. No matter where you go, you will find qualified manpower, seamless internet, and good road connectivity. This makes Kerala like one big city without the congestion,” Anoop added.
He said the state has established Leap Centres across 19 locations to provide coworking spaces to startups. These centres have been set up after refurbishing and upgrading existing government infrastructure. For example, Zoho’s first office in Kottarakkara was once an IHRD (Institute of Human Resources Development) college.
Anoop also said the Kerala Development and Innovation Strategic Council (K-DISC) is promoting a ‘work near home’ initiative to promote the same.
The state’s IT department is setting up rural IT parks in Kannur and Thrissur to support this vision.
“Earlier, people wanted to move to big cities, but urban life comes with issues like traffic and poor planning. Post-COVID, many are rethinking (their choices) and are preferring more sustainable ways of living. Kerala offers a unique solution to work and live close to nature, which is why we are focusing on decentralised development,” he said.
Anoop also highlighted plans to engage the diaspora in driving the state’s startup growth story.
“We are tapping into the diaspora through informal organisations in the US and other countries. NORKA (Non-Resident Keralites’ Affairs) is planning a summit to bring together a network of professionals and entrepreneurs from Kerala living abroad. We have a large network, and we haven’t fully utilised it yet,” he said.
(Edited by Ajeet Tiwari)
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