Karnataka launches Rs 150-crore ELEVATE NxT for AI, emerging tech startups; out-of-state firms must register locally if selected

• Karnataka launches ELEVATE NxT with Rs 150 crore fund for deep-tech startups.
• 146 startups honored under ELEVATE 2025; 43% women-led, 43% non-metro.
• Rs 75 crore fund aims to boost startups in Mysuru, Mangaluru, Hubballi

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Karnataka government on January 17 launched ELEVATE NxT, a flagship deep-tech startup support programme under LEAP (Local Economy Accelerator Programme). The announcement was made at a felicitation ceremony in Bengaluru recognising 146 startups selected under the ELEVATE 2025 initiative.

Also, read: Karnataka cabinet approves Rs 518 crore start-up policy 2025-2030 to help create 25k AI, blockchain ventures

ELEVATE NxT to boost deep-tech innovation

ELEVATE NxT is designed to nurture startups working at the frontiers of science and engineering, with a strong focus on emerging and transformative technologies such as Artificial Intelligence, Machine Learning, Internet of Things, blockchain, augmented and virtual reality, robotics, 3D printing, drones, biotechnology, quantum computing, advanced materials, cybersecurity, green energy and space technology.

“The programme follows a transparent grant-in-aid framework that offers milestone-based funding and sector-aligned mentorship, aimed at helping startups scale globally while addressing real-world challenges” a statement said.

Rs 150 crore corpus, grants up to Rs 1 crore

Karnataka government has earmarked Rs 150 crore for ELEVATE NxT. Each selected startup will be eligible for grant-in-aid support of up to Rs 1 crore, disbursed based on clearly defined milestones. The programme is open to deep-tech startups from across India, enabling innovators nationwide to contribute to Karnataka’s innovation-led growth.

Startups will be selected through rigorous multi-stage evaluations and supported with structured mentoring to ensure global competitiveness and societal relevance.

Also, read: TiEcon Mangaluru 2026: Karnataka to launch local innovation fund for cities beyond Bengaluru

Beyond Bengaluru Cluster Seed Fund targets emerging hubs

Alongside ELEVATE NxT, the government launched Rs 75 crore Beyond Bengaluru Cluster Seed Fund, a targeted capital support initiative aimed at accelerating startup growth in emerging innovation clusters outside the capital city.

The fund has a total corpus of Rs 75 crore, with a Rs 20 crore commitment from the state government and the remaining mobilised through institutional and private participation. Phase I will focus on Mysuru, Mangaluru and Hubballi-Dharwad, with more clusters to be onboarded in subsequent phases.

Managed by Karnataka Asset Management Company Pvt Ltd in collaboration with the Karnataka Digital Economy Mission (KDEM), the fund will deploy equity and equity-linked investments starting at Rs 50 lakh per startup, in line with SEBI regulations.

Also, read: Karnataka to launch deep tech push with Rs 663 crore fund; VCs to bring in Rs 443 crore

146 startups felicitated under ELEVATE 2025

At the event, 146 startups were recognised under ELEVATE 2025, including 103 ELEVATE winners, 33 ELEVATE Unnati startups and 10 ELEVATE Minorities startups, with a total committed grant of Rs 38.85 crore.

ELEVATE provides one-time grant-in-aid support of up to Rs 50 lakh, along with mentoring and incubation assistance at subsidised rates through government-supported incubation centres.

Strong focus on women-led and non-metro startups

Of the ELEVATE 2025 winners, 43 percent are women-led enterprises and 43 percent are based beyond Bengaluru.

Under ELEVATE Unnati programme, which supports SC/ST entrepreneurs, 33 startups received a committed grant of Rs 9.52 crore, with 55 percent located beyond Bengaluru. Similarly, ELEVATE Minorities recognised 10 startups with a committed grant of Rs 3.65 crore, half of which are based outside Bengaluru.

Also, read: Karnataka’s ELEVATE programme provides grant to over 1,000 startups: Priyank Kharge

ELEVATE’s no-equity grant model strengthens ecosystem

Addressing the gathering, IT and BT Minister Priyank Kharge said ELEVATE’s sustained success lies in its mission-mode implementation. Launched in 2017, the programme has disbursed Rs 287.85 crore as grant-in-aid seed funding to 1,230 startups across Karnataka, without taking any equity stake.

The felicitation event brought together startup founders, investors, corporates, policymakers, academia and ecosystem partners involved in the multi-stage evaluation process.

Startup Policy 2025–2030 charts roadmap

The government also unveiled the Karnataka Startup Policy 2025–2030, with an outlay of Rs 570.675 crore, aimed at establishing 25,000 new startups by 2030, including at least 10,000 from beyond Bengaluru.

“Anchored on seven pillars- funding, incubation, mentoring, market access, international collaboration, inclusion and regulatory facilitation- the policy focuses on emerging technologies, sustainability and lifecycle support, from early ideation to global expansion and IPO readiness” said Kharge.

Also, read: From Rs 50K employee reimbursement to Rs 10 crore for IT parks: How Karnataka is luring IT firms to Beyond Bengaluru clusters