Karnataka government first scheme: Up to Rs 25 lakh for startup pilots

Karnataka's 'Government First' initiative offers startups up to Rs 25 lakh for pilot deployments, with a total budget of Rs 25 crore spread over three years. The program, approved under the ELEVATE framework of Karnataka Startup Policy 2025–30, will be managed by the Karnataka Innovation and Technology Society (KITS). Unlike traditional buyer roles, the government aims to have departments become early adopters of new technologies.

Startups can access this funding by addressing specific departmental issues or by proactively presenting their technologies. The application process is handled in quarterly cycles, with shortlisted solutions evaluated based on factors like innovation, feasibility, scalability, and relevance to government use cases. Once a pilot is underway, the relevant department provides infrastructure, support, and guidance to assess performance and impact.

Eligible startups must be less than 10 years old, have an annual turnover not exceeding Rs 200 crore, and demonstrate innovation or scalability in products, processes, or services. The programme covers various sectors, including IT, AI, data analytics, logistics, and hardware. Each startup can receive up to Rs 25 lakh for the pilot, with 25% paid upon work order issuance and the remaining 75% released upon completion.

Intellectual property remains with the startup, unless otherwise agreed. Successful solutions may be adopted by multiple departments or tackle larger government challenges. A public dashboard and annual reports will track the programme's progress and outcomes.