Karnataka to empanel 100 startups for 'preferential market access' in govt tenders

The Karnataka government plans to empanel 100 startups under the Preferential Market Access (PMA) scheme to promote entrepreneurship in the state.

This initiative aims to support young entrepreneurs by making the government their first customer by encouraging state government departments and public sector units to procure products and services from these startups.

Karnataka IT-BT Secretary Ekroop Caur told Moneycontrol that nine startups have been empanelled after evaluation following the first Expression of Interest (EoI) called between December 2023 and January 2024.

Also, read: Karnataka to unveil preferential public procurement policy to support startups

"The second EOI for startup empanelment was launched on June 20, 2024, and will remain open till August 5, 2024. We are also conducting awareness campaigns among startups about the PMA process," she said.

The nine empanelled startups are: TeckKshetra Infosolutions Pvt Ltd (online exam solutions, AI-based face recognition, etc), Trashcon Labs Pvt Ltd (solid waste management), eReleGo Technologies Pvt Ltd (digital marketing services), Reverse Engineering Infosec (cybersecurity solutions), Hanle Solutions Pvt Ltd (digital marketing services), Fynamics Techno Solutions Pvt Ltd (digital solutions/platforms which enable financial transactions), Sentienz Solutions Pvt Ltd (IoT-based energy services), Anabio Technologies Pvt Ltd (biodegradable sanitary pads), and Elpis Energy Solutions Pvt Ltd (solar energy solutions).

Also, read: Karnataka to simplify procedures for startups participating in govt tenders

In 2021, the state government identified technology products/solutions across 12 sectors which could be procured from startups empanelled by the state IT-BT department. These sectors include healthcare, agriculture, manufacturing, cleantech, marketing, finance, human resources, energy, operations, smart cities, renewable and circular economy, and other emerging technologies.

However, none of the empanelled startups has participated in the public procurement (tender) process so far.

Caur said the government plans to empanel at least 100 startups in the first phase. "This programme will be expanded based on the outcomes from the pilot phase,".

Officials said the idea is to promote public procurement from startups and create a competitive marketplace to foster their growth. Startup empanelment will be valid for three years, with an annual process to address evolving technology needs and provide startups the opportunity to showcase their solutions to the public sector.

Also, read: Karnataka govt invites startups to provide tech products and solutions for depts

The benefits to empanelled startups include exemption from pre-qualification criteria such as prior turnover and experience for tenders under Rs 20 lakh if established within three years, and a 50 percent reduction in these criteria for tenders exceeding Rs 20 lakh. They would also get opportunities to engage with various government departments, which would help them access the Karnataka market. This collaboration facilitates entrepreneurship and innovation, creating employment opportunities while providing efficient solutions for government challenges through technology.

Coming soon: Propel to help startups

Karnataka Innovation and Technology Society (KITS) will soon develop an online platform named Propel to accelerate the adoption of startup solutions and help new-age firms secure their initial customers. Propel will connect startups directly with tech MNCs, GCCs, GIA partners, and other entities, facilitating the offering of innovative solutions. Officials said Propel will facilitate partnerships between startups, industries, and government departments, providing a direct avenue for startups to showcase solutions to potential customers.

Also, read: Karnataka floats tender for 'Propel' platform aimed to help start-ups get first customers