'Beyond Bengaluru': Karnataka plans to transform Mysuru into a startup and tech hub

At the industry roundtable on August 25, Karnataka Digital Economy Mission (KDEM) received Letters of Intents (LoIs) for the Rs 25-crore Mysuru cluster seed fund from the industry

The Karnataka government is planning to turn Mysuru into a startup and tech hub. At the industry roundtable held on August 25, the Karnataka Digital Economy Mission (KDEM) received Letters of Intents (LoIs) from industrialists for the Mysuru cluster seed fund.

Of the Rs 25 crore seed fund for the Mysuru cluster, Rs 8 crore is from the Karnataka government and the remaining amount is from financial institutions, venture capitalists, angel investors and others. While the government has allocated Rs 8 crore, the KDEM received LoIs for Rs 2 crore from two industrialists on August 25.

KDEM along with industry partners, is setting up a Rs 75 crore seed fund for the three clusters: i) Mysuru, ii) Hubballi-Dharwad-Belagavi and iii) Mangaluru to encourage tech-based start-ups in Karnataka as part of the 'Beyond Bengaluru initiative'.

"This fund is a first-of-its-kind SEBI Category-I fund with a focus on emerging tech clusters, which will be a game-changer for the Indian startup ecosystem," said a statement from KDEM.

"This will not only facilitate startups with their growth needs but also connect with global partners for their business growth. It will attract more investments to the cluster and drive greater employment locally. This fund has been established in partnership with the state government, banks and industry leaders," the statement added.

Sanjeev Gupta, CEO of KDEM, said, "'Beyond Bengaluru' is becoming a reality. In the last 18 months, we have facilitated over 45 companies in setting up their operations in these clusters. Our most recent success is supporting Kaynes Technologies in their expansion plans and we are hopeful and prepared for greater investments to follow."

Also read: Beyond Bengaluru: Karnataka launches Mysuru seed fund, technology centre

As part of the 'Beyond Bengaluru initiative', Mysuru is growing into an emerging tech hub in India, serving and housing global brands in the cluster. "Talent is one of the key elements highlighting the strength of the cluster across all sectors, covering both service and manufacturing. In the last two years, the industry has come together aggressively and driven the business acumen for the cluster. With a promising business pipeline in the coming months, Mysuru is set to transform Karnataka's digital landscape," the release said.

NASSCOM GCC council members also visited the upcoming Global Technology Centre, a Class A infrastructure facility for operationalising GCCs, IT and startup companies in Mysuru.

Also read: Karnataka govt wants startups to think beyond Bengaluru; action plan proposes incentives in other districts

Over the last 18 months, Mysuru has attracted many global companies such as IBM, Travancore Analytica, Nagaro, HHS, Proxelera, Forefront Healthcare, GloTouch Auto-Asam, etc. Hinduja Global Solutions (HGS) is expanding its global delivery network with a new centre in Mysuru to support a leading US travel management services company. HGS plans to hire 400 local employees in Mysuru initially, providing exposure to international business, skill development opportunities and community engagement in the city.

Kaynes Technology on August 24 signed an MoU with the state government for their manufacturing expansion plans, with an investment of Rs 3,750 crore, creating 3,200 jobs in the cluster.

The Beyond Bengaluru Startup Grid now accommodates 120 startups from the Mysuru cluster, with almost 15 percent being women-led startups. GCC infra partners like Skootr also see these emerging clusters as potential markets for their growth. Upcoming IT parks like Global Technology Center, Renaissance IT Infra Park and Gopalan Infra will also attract GCCs and startups to grow from this cluster, the release said.

Ekroop Caur, secretary of IT-BT and Science & Technology, said, "Karnataka has been the leading state for attracting GCCs into our cluster. Our state's emerging tech clusters have a lot to offer. We invite all global industries to come and experience firsthand the product offerings from these clusters."

Sudhanva Dhananjaya, Founder & CEO of Excelsoft Technologies & Lead Industry Anchor, KDEM Mysuru Cluster, said, "We see Mysuru as a global technology hub along with our skilled talent graduating every year from here. The startups are passionate about their businesses, and we see strong growth numbers every month from here. It's also an ideal location for GCCs to expand and partner in our cluster, which would encourage them to come and see for themselves."