Karnataka Digital Economy Mission (KDEM)

Choosing the right programme

KDEM does not have one door in — start by checking which of its two live programmes actually fits. The Karnataka Acceleration Network (KAN) is for growth-stage startups anywhere in Karnataka and delivers acceleration through a regional partner, not KDEM itself. The Beyond Bengaluru Cluster Seed Fund is narrower and stricter: it only accepts Private Limited Companies incorporated in Karnataka that already operate from a district outside Bengaluru Urban. If your company is still registered in Bengaluru, or isn't a Private Limited Company yet, sort that out before applying to the fund.

How KAN applications work

When you apply to KAN you also choose a preferred accelerator location — Bengaluru (JAIN Launchpad, GINSERV or DERBI Foundation), Mysuru (SJCE-STEP), Mangaluru (SHINE Foundation), or Hubballi-Dharwad-Belagavi (ASTRA). Each accelerator partner has its own sector leanings, so it's worth checking which one is closest to what you build before you pick — for example, ASTRA at Dharwad has an agritech and sustainability focus, and SHINE at Mangaluru leans healthcare, deep tech and environmental technology.

How the Cluster Seed Fund evaluates applications

Applications to the Cluster Seed Fund go through a screening step against the published eligibility criteria first, then a Cluster Level Advisory Committee, and only then the Fund's own Investment Committee, which makes the final call. Because this is an equity fund and not a grant, expect the same kind of diligence a venture fund would run — the fund's own disclaimer is explicit that submitting an application creates no entitlement to funding.

What KAN reviewers look for

KAN is pitched at startups that are already past the idea stage — the programme's own materials describe it as being for the growth stage, with modules on business-strategy revisits, market validation, customer acquisition and investment readiness. A founder still validating a first product is a better fit for an earlier-stage programme elsewhere; KAN is built to take a startup that already has traction and get it investor-ready.

Karnataka Digital Economy Mission (KDEM) is a Section 8, not-for-profit body set up under the Department of Electronics, Information Technology, Biotechnology and Science & Technology, Government of Karnataka. It acts as a bridge between the state government and the technology industry, and its founder-facing work sits inside its Innovation and Startups vertical. KDEM is registered in Bengaluru, but its most active startup programmes are aimed at founders outside the city, through its Beyond Bengaluru mission.

What they support

KDEM runs two startup programmes of its own, each for a different kind of applicant. The Karnataka Acceleration Network (KAN) is open to growth-stage, Karnataka-based startups across sectors including deep tech, AI and data, agritech, health tech, manufacturing, clean technology and sustainability, mobility, enterprise SaaS and other emerging technologies. The Beyond Bengaluru Cluster Seed Fund is narrower: it only accepts Private Limited Companies incorporated in Karnataka and operating from a district outside Bengaluru Urban, in priority sectors such as IT, biotechnology, electronics systems design and manufacturing, semiconductors, and animation/VFX/gaming/comics. KDEM does not run an incubator campus that founders move into; both programmes work through a network of accelerator and fund partners instead.

KDEM's site also signposts, without directly administering, several state-run schemes under a section it labels 'GoK Initiatives' — including ELEVATE, Grassroot Innovation, sector Centres of Excellence, the New Age Innovation Network, the Rajiv Gandhi Entrepreneurship Program, Technology Business Incubators and the Global Technology Centre in Mysuru. A founder applying to one of these is applying to the underlying state scheme, not to KDEM directly.

Programmes

The Karnataka Acceleration Network is a six-month acceleration programme delivered through five regional partners: JAIN Launchpad, GINSERV and DERBI Foundation in Bengaluru, SJCE-STEP in Mysuru, SHINE Foundation in Mangaluru, and ASTRA (University of Agricultural Sciences, Dharwad) in Hubballi-Dharwad-Belagavi. A cohort covers cohort readiness, business-strategy review, market validation, customer acquisition and investment-readiness modules, along with one-to-one and group mentorship and access to infrastructure through the partner network. Each cohort ends in a demo day in front of investors. KAN has run two cohorts to date and is taking applications for a third, which starts in November 2026; applicants choose a preferred accelerator location when they apply.

The Beyond Bengaluru Cluster Seed Fund is an equity fund, structured as a SEBI-registered Category I Alternative Investment Fund, with the Government of Karnataka as primary sponsor, Karnataka Asset Management Company (KAMCO) as fund manager, and KDEM as strategic partner. A single common application form is used, and applications are accepted on a rolling basis. Eligible applications first go through a screening step against the eligibility criteria, then a Cluster Level Advisory Committee, before the Fund's Investment Committee makes the investment decision.

A third initiative, Beyond Bengaluru Blue, connects high-potential startups from the Mysuru, Mangaluru and Hubballi-Dharwad-Belagavi clusters with VCs, angel investors and industry leaders for pitching and networking; KDEM's site describes it but does not publish a standalone application route for it.

Who runs it

KDEM's CEO is Sanjeev Kumar Gupta and its Chairman is BV Naidu. Its Innovation and Startups vertical is led by a Vice President for Startups & Innovation, and the Karnataka Acceleration Network has its own programme manager. KDEM's board includes government secretaries from the Department of Electronics, IT, BT and S&T alongside representatives from ASSOCHAM, NASSCOM and the Karnataka Startup Vision Group.

Locations

KDEM's registered office is in HSR Layout, Bengaluru. Its Beyond Bengaluru mission covers six clusters: Mysuru, Mangaluru, Hubballi-Dharwad-Belagavi, Kalaburagi, Shivamogga and Tumakuru, and the Cluster Seed Fund and KAN partner network both operate across these same clusters.

Track record

As of March 2025, KDEM reported that its Beyond Bengaluru mission had onboarded 126 companies and created 5,500-plus direct jobs across its clusters; an earlier page on the same site gives a smaller count of over 25 companies and 5,000-plus jobs for the same mission, so the two figures should be read as different snapshots rather than reconciled. KDEM also states that more than 300 startups are already part of its Beyond Bengaluru Startup Grid mentor network. For the Karnataka Acceleration Network specifically, the first cohort (April 2025 to January 2026) enabled 56 startups across the five accelerator partners, of which 93.3% completed the programme, and the cohort is reported to have created over 200 jobs.

How to apply

KAN and the Cluster Seed Fund each have their own route in — there is no single KDEM-wide application form. For KAN, applicants fill an online form for the current cohort and pick a preferred accelerator location; queries can go to the programme's own inbox. For the Cluster Seed Fund, applicants submit the fund's single common application form at any time, since applications are accepted on a rolling basis; a company must already be incorporated in Karnataka and operating from a district outside Bengaluru Urban to qualify.