KSUM - Rent Subsidy
The KSUM Rent Subsidy is a targeted financial support initiative by Kerala Startup Mission, KSUM, to help product-based startups in the scale-up stage reduce operational costs associated with rental infrastructure. The scheme is currently operational and supports startups that have moved beyond early product development and are growing their teams and revenues by reimbursing a portion of the rent paid for eligible workspaces located in Government parks or leased government facilities.
Through this rent subsidy, the Government of Kerala aims to reduce recurring overhead pressure during the growth phase. If you are an MSME or startup scaling operations, this scheme helps improve cash flow, preserve equity, and redirect capital towards hiring, marketing, and product expansion instead of fixed rental costs.
Key Features
- Reimbursement-Based Support: The scheme reimburses up to 50 percent of the rent paid, or ₹20 per sq. ft, whichever is lower. This directly reduces monthly operating expenses for eligible startups.
- Scale-Up Stage Focus: The scheme is designed for product-based startups that have achieved revenue traction or funding milestones and are now expanding operations.
- Performance-Linked Continuation: Continued support depends on measurable business growth, typically requiring significant year-on-year revenue improvement.
- Applicable to Government-Linked Spaces: Eligible workspaces must be located in Government parks or leased facilities managed by Government or associated agencies.
- Compliance-Based Disbursement: Subsidy is released only after submission of rent receipts and required compliance documents, ensuring transparent and performance-driven utilisation.
Financial Assistance
Grant amounts and tenure are indicative and subject to revision as per the latest KSUM guidelines.
Eligibility Criteria
Who can benefit:
- Product-based startups operational in Kerala
- DPIIT-recognised startups
- Startups with at least 10 employees, majority domiciled in Kerala
- Startups with annual revenue of ₹50 lakh or more, or equity funding of ₹150 lakh or more
- Startups operating from eligible Government parks or leased facilities
- Startups occupying up to 10,000 sq. ft or 70 sq. ft per employee, whichever is lower
Who cannot benefit:
- Startups already receiving rent subsidy for the same space under another scheme
- Companies with pending dues to Government agencies
- Startups that do not meet scale-up or performance criteria
Documents Required
- DPIIT Startup India recognition certificate
- Certificate of incorporation
- Rental or license agreement for workspace
- Rent receipts and proof of payment
- Professional tax receipts, recent filings
- Declaration confirming no pending Government dues
Application Process for the Scheme
Option 1: Apply with Bullit, Recommended
Start instantly with our guided application support, where our team verifies eligibility, prepares documentation, and coordinates with the Industries Department on your behalf. Using our business loans and compliance calendar, you can track progress while focusing on project execution, we manage the application end-to-end.
Recommended for founders seeking structured guidance and reduced compliance risk.
Option 2: Apply Through KSUM Portal
Step 1: Register and Create Profile
Create your login credentials on the Kerala Startup Mission portal and complete your startup profile with accurate operational and financial details.
Step 2: Select Rent Subsidy Scheme
Navigate to the active schemes section and choose the Rent Subsidy scheme.
Step 3: Fill Application Details
Provide details of your startup, revenue figures, employee strength, workspace details, and rent paid.
Step 4: Upload Documents and Submit
Upload required documents including rental agreement, rent receipts, DPIIT certificate, and compliance declarations. Review and submit the application.
Step 5: Track and Respond to Evaluation
Track your application status through the dashboard and respond to any clarifications or evaluation requirements.
Related Schemes
Frequently asked questions
What is the objective of the KSUM Rent Subsidy?
The scheme aims to reduce rental burden for product-based startups in the scale-up phase and improve operational cash flow during growth.
Is the rent subsidy a loan?
No. It is a reimbursement-based subsidy and does not require repayment.
Who is eligible to apply?
Product-based startups in Kerala that meet employee, revenue, funding, and DPIIT recognition criteria are eligible.
How much subsidy can I receive?
Up to 50 percent of rent paid or ₹20 per sq. ft, whichever is lower, subject to eligibility.
How is the subsidy disbursed?
The subsidy is released after submission of rent receipts and verification of compliance documents.
For how many years can I receive the subsidy?
Support is available for up to 3 years, subject to continued eligibility and growth performance.