We Are Creating More Bengaluru Outside Bengaluru: Sanjeev K. Gupta, CEO, KDEM

How would you describe the primary role and scope of the Karnataka Digital Economy Mission or KDEM? What are its key objectives in promoting digital innovation and economic growth?
The Karnataka Digital Economy Mission (KDEM) was set up in 2021 to reshape the state’s digital ecosystem in sync with global hyper development trends. Focus areas comprising of innovation/ startups, ESDM, GCC, talent, Beyond Bengaluru mission. The objective was that it must be led by industry leaders and supported by the state government with the motto of ‘By the industry - For the industry’. The state government’s stake in KDEM is 49 per cent. The remaining 51 per cent is held by industry bodies ASSOCHAM, IESA and NASSCOM. The board includes all additional chief secretaries and the industry leaders. 

KDEM also has a focus on Beyond Bengaluru. This mission is to create emerging tech clusters, and the identified regions in phase I are Mysuru, Mangaluru, and Hubballi – Dharwad – Belagavi (HDB). Karnataka will be contributing $1 trillion to the national economy and of that $300 billion will be digital economy, in the next five years. 

Can you provide insights into the specific activities undertaken by KDEM to foster the growth and development of digital startups and entrepreneurs in the state?
One of the key pillars are innovation & startups (I&S): This is a focused initiative to help startups in three main key areas. Access to capital: from banks, NBFC, angels, VCs, family offices, from India and global partners. Both debt & equity is made accessible to our startups across the state. Karnataka also runs its annual startup grant scheme “Elevate” to support ideas to PoC up to Rs 50 lakh as one-time grant. As of this year, the state has supported 721 startups, with 30 per cent of them led by women entrepreneurs and 25 per cent hailing from Tier-2 and Tier-3 cities, with a total grant of approximately Rs 165.28 crore. 

Access to mentorship: KDEM has a strong universe of global mentors which can be tapped via its innovative startup platform. Currently it houses over 300 mentors across multiple domains. Access to networking: there are many industry networking sessions hosted/partnered by KDEM almost weekly to encourage business connects and potential partnership; these growth platforms are ideal for all the startup ecosystem stakeholders.

Could you elaborate on the mission's focus on five core sectors and explain how it is driving investments and growth in these areas? What strategies or initiatives have been implemented to attract both domestic and foreign investments?
Karnataka has received more than uSD 64 billion of venture capital last year, the highest in the country. With over 43 unicorns, 85+ fabless design houses, and more than 400 GCCs, Karnataka is a global hub for digital business. We need to keep sharpening our value proposition to maintain this leadership and edge. The vibrant ecosystem needs constant support from all stakeholders -- that’s where KDEM plays an important role.

How is KDEM working to create a favourable ecosystem for digital innovation and entrepreneurship in other cities and regions of the state? What steps have been taken to promote inclusive growth and tap into the potential of diverse locations?
We are creating more Bengaluru outside Bengaluru. Each cluster is a unique product by itself. KDEM works towards building and bridging the business drivers which makes these clusters global investments destinations: infrastructure, talent ecosystem, social infrastructure, policy benefits, compliances and overall P&L. Each of the emerging tech clusters provide ~30 per cent direct topline benefit addressing the cost of hiring, talent cost, government subsidy, infrastructure cost and almost zero attrition and poaching.

The Beyond Bengaluru clusters benefit significantly from their association with esteemed educational institutions such as SJC Mysuru, Manipal Institute of Technology, KSOU, IIT Dharwad, IIIT Dharwad, VTU, Mysuru University, and KLE Tech University. This collaboration provides a substantial boost to the research and development ecosystem within the cluster. Another important factor are the HNIs from these clusters who have started to come forward as angels and support the growth story from their own clusters which has never happened before.

Can you highlight some of the significant MoUs signed by the Karnataka Digital Economy Mission with industry partners, institutions, or other government bodies? 
We have signed many MoUs. For example, with Infosys Springboard. This is towards upskilling and getting employable talent from Karnataka for the global industry. With 

ISAC (Information Sharing and Analysis), we are driving cybersecurity, conducting train-the-trainer programmes, conducting hackathons, industry-student bridge and industry-industry bridge. With IT-Serve – USA, it is about supporting US startups and mid-size companies to enter India, with Karnataka and its clusters being the focus geographies. The MoU with the State Bank of India is towards supporting startup funding (both debt and equity) across the state. In the last six months they have funded more than 21 startups in the state. Then we have a MoU with the Hebrew University Business School, Israel towards conducting innovation management programme for all heads of CoEs in Karnataka. Some new programmes are also in the pipeline.