About this programme
The Fund of Funds is Kerala's flagship capital deployment initiative to strengthen the startup investment ecosystem. KSUM acts as a Limited Partner in SEBI-registered Alternative Investment Funds (AIFs), which then invest directly in Kerala-based startups. Since its launch in 2018, the program has partnered with 16 venture capital funds and catalyzed significant private and institutional capital flow into Kerala startups. It is run by Kerala Startup Mission (KSUM).
This is equity funding — the investor (often through a fund) takes a stake in your company in exchange for capital, rather than lending or granting money. You give up some ownership; you don’t repay it like a loan. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
KSUM participates as a Limited Partner in professionally managed SEBI-registered AIFs. These AIFs then independently select and invest in Kerala-based startups through equity instruments. Periodic calls for proposals are issued to eligible fund managers. Approved funds undergo onboarding and capital deployment by KSUM.
Who can apply
SEBI-registered Alternative Investment Funds (Category I & II) with investment strategies focused on Kerala-based startups. Institutional and professional fund management entities are eligible to apply as fund managers.
How to apply
- Fund managers watch for periodic calls for proposals from KSUM
- Submit detailed proposal including fund strategy, investment focus, governance structure, and alignment with Kerala startups
- Applications undergo structured evaluation process
- Selected funds proceed to onboarding and capital deployment phase
Documents you’ll typically need
- Business registration / incorporation certificate
- PAN (and GST registration, where applicable)
- Identity and address proof for the applicant / directors
- A short description of your business or project
- Recent financials or a simple project report
The exact checklist depends on the programme and your specifics.
Frequently asked
Who are the eligible applicants for the Fund of Funds?
SEBI-registered Alternative Investment Funds (Category I & II) and institutional/professional fund management entities with investment strategies focused on Kerala-based startups.
Does KSUM directly invest in startups?
No. KSUM acts as a Limited Partner in AIFs, which are professional fund managers that independently select and invest in startups.
What sectors are eligible?
The program is sector-agnostic and supports funds with diversified or thematic investment strategies across various industries.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.