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Key SaaS Metrics For Startup

What are Saas Metrics?

SaaS metrics are key performance indicators (KPIs) specific to SaaS businesses. These metrics allow startups to track and analyze critical aspects of their business, such as user acquisition, engagement, and revenue generation. By monitoring SaaS metrics regularly, startups can make data-driven decisions that help them optimize performance and achieve long-term success.

Here are the 10 most important metrics that every SaaS startup should keep track of:

1. Monthly Recurring Revenue 

2. Customer Acquisition Cost

3. Churn Rate

4. Lifetime Value

5. Gross Margin

6. Monthly Active Users

7. Average Revenue per User

8. Customer Lifetime Value to Customer Acquisition Cost Ratio 

9. Net Promoter Score

10. Viral Coefficient 

Monthly Recurring Revenue (MRR)

MRR is the most critical metric for any SaaS business, and it measures the predictable revenue a company expects to earn every month. MRR is calculated by multiplying the total number of customers by the average monthly payment per customer.

Let’s take an example. If you have 100 paying customers, and each customer pays $100 monthly, your MRR would be $10,000.

Customer Acquisition Cost (CAC)

The CAC stands for customer acquisition cost, and this measure is crucial because it enables you to assess how well your marketing and sales initiatives work. By dividing the entire cost of sales and marketing by the number of new customers obtained, CAC is computed.

For instance, your CAC would be $100 if you invested $10,000 in sales and marketing and added 100 new clients.

Churn Rate

The churn rate, also known as the rate of attrition or customer churn, measures the proportion of customers who cancel or do not renew their contracts. This indicator is crucial because it enables you to identify the causes of customer turnover and take the appropriate steps to lower it. The churn rate is determined by dividing the total number of customers at the start of a given time period by the number of customers actually retained throughout that period. Your customer turnover rate would be 10%, for instance, if you started the month with 100 clients and lost 10.

Lifetime Value (LTV)

The entire income you may anticipate from a single client throughout their subscription is called lifetime value (LTV). This statistic is crucial since it enables you to assess your company’s profitability and your marketing and sales initiatives’ return on investment (ROI). The average monthly income per customer is multiplied by the typical customer lifespan to determine LTV. Example: The LTV would be $1,200 if the average customer lifespan is 12 months and the average monthly income per client is $100.

Gross Margins

Gross margins are a way to gauge how profitable your company is. Because it enables you to calculate the cost of items sold and the income from those things, this statistic is crucial. When calculating gross margins, income is reduced by the cost of items sold, and the resulting amount is divided by the payment.

For instance, your startup’s gross margin would be 60% if its revenue was $10,000 and its cost of goods sold was $4,000.

Monthly Active Users (MAU)

MAU measures the number of unique users who engage with your product or service monthly. This metric is crucial because it helps you understand your customers’ engagement level and your business’s growth potential. MAU is calculated by counting the unique users interacting with your product or service during a specific month.

Average Revenue Per User (ARPU)

The average monthly revenue earned per user, or ARPU is measured. This indicator is crucial since it clarifies your company’s income potential and each client’s profitability. ARPU is determined by dividing the entire income earned by the total number of users.

Your ARPU would be $100, for instance, if 100 users contributed $10,000 in revenue.

LTV to CAC Ratio

The Customer Lifetime Value to Customer Acquisition Cost Ratio (LTV: CAC) calculates the difference between a customer’s lifetime value and acquisition cost. This statistic is crucial because it enables you to calculate the return on investment for your marketing and sales operations. LTV: CAC ratio can be calculated by dividing client lifetime value by customer acquisition cost.

For example, if the LTV of a customer is $1,200 and the CAC is $100, then the LTV: CAC ratio would be 12:1.

Net Promoter Score (NPS)

NPS gauges a customer’s propensity to endorse your good or service to others. This indicator is crucial because it gives insight into client satisfaction and the possibility of word-of-mouth advertising. The net promoter score is determined by dividing the proportion of promoters (customers who would suggest your product or service) by the percentage of detractors (customers who would not recommend your product or service)

Viral Coefficient

The viral coefficient gauges the potential for word-of-mouth advertising to expand your company. This statistic is crucial since it clarifies your product or service’s performance and its capacity for exponential expansion. The viral coefficient is determined by dividing the number of invitations each user sends by their conversion rate.

How to Measure and Analyze SaaS Performance?

Once you’ve identified the key SaaS metrics you want to track, the next step is to measure and analyze them effectively.

One of the most effective ways to measure SaaS performance is to use a combination of analytics tools and data visualization software. These tools can help you gather data from various sources and display it in an easy-to-understand format that provides valuable insights into your business’s overall performance

How to Track and Interpret SaaS Metrics

Tracking SaaS metrics involves more than just collecting data; startups must also be able to interpret the data to make meaningful decisions about their business. Here are a few tips for tracking and analyzing SaaS metrics effectively:

  • Set clear goals and benchmarks to measure success.
  • Regularly review and update your metrics based on changes to your business.
  • Visualize your data to identify trends and patterns quickly.
  • Compare your metrics to industry benchmarks to understand how well your business performs compared to your competitors.

SaaS Metric companies

Many companies specialize in SaaS metrics, offering software tools and consultancy services to help startups track and analyze their performance. Some of the most popular SaaS metric companies include:







The Benefits of Tracking SaaS Metrics for Startups

While tracking SaaS metrics may seem overwhelming, the benefits for startups are significant. By monitoring key metrics like MRR, churn, and customer engagement regularly, startups can:

  • Make data-driven decisions that optimize performance and increase revenue
  • Identify areas for improvement and drive innovation.
  • Track progress towards specific goals and benchmarks.
  • Ensure their business is financially viable over the long term.

Optimizing SaaS Performance with Metrics

Tracking and analyzing metrics can be a game-changer for SaaS startups. By understanding the essential metrics and how to track and analyze them effectively, founders can make data-driven decisions that optimize performance and increase their chances of long-term success.

While tracking and interpreting these metrics may seem daunting at first, it’s essential for building a successful SaaS business. By staying on top of key metrics and tracking progress regularly, startups can stay ahead of the competition and achieve their goals.

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1. Is my SaaS business financially viable?

To check this, founders must thoroughly analyze their business’s financial data, including revenue, expenses, and cash flow. By closely monitoring key financial metrics like MRR, LTV, and gross margin, founders can make data-driven decisions that help them achieve sustainable growth and profitability. 

2. What is the golden rule of SaaS?

The Rule of 40 states that a software company’s combined revenue growth rate and profit margin should equal or exceed 40%. SaaS companies above 40% generate profit sustainably, whereas companies below 40% may face cash flow or liquidity issues.

3. What is a KPI in SaaS?

A key performance indicator (KPI) is a quantifiable figure that shows how well a business accomplishes its primary goals. For example, the Customer Churn Rate, Net Promoter Score, and Customer Retention Rate are three KPIs most SaaS businesses use.

4. Difference between SaaS Metrics and SaaS KPIs

While the terms SaaS metrics and KPIs are often used interchangeably, there is a clear difference between the two. SaaS metrics are specific performance measures unique to SaaS businesses, while KPIs are broader measures of success that can be applied to any business. 

4. Which Saas Metrics are the most important?

While the most critical SaaS metrics will vary depending on their goals, the most important are Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC), Customer Lifetime Value (CLTV), Churn Rate, and Gross Margins. 

7. What is the Rule of 40 in SaaS?

In recent years, the 40% rule has gained widespread usage as a popularized measure of growth by SaaS investors. The Rule of 40 states that if a company’s revenue growth rate were to be added to its profit margin, the total should exceed 40%.

Next: Looking for startup inspiration? Check out our latest blog on must-read startup books in 2023!


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Understanding Startup Valuation


As an entrepreneur or investor, startup valuation is one of the most critical aspects to consider when it comes to business growth and investment returns. Understanding the process of startup valuation can be challenging, especially for those who are new to the game. However, it is a crucial element that can determine the success or failure of a startup. In this guide, we will explore the different aspects of startup valuation that every founder and investor should know.

What is Startup Valuation?

Startup valuation refers to the process of determining the worth or value of a startup. It is an essential aspect of the investment process. Also, it helps to determine how much equity or ownership an investor will receive in exchange for their investment. The valuation of a startup is based on a variety of factors, including the company’s financial health, the potential for growth, the competition in the market, and the team’s experience and skill set.

Importance of Valuing Your Startup

Startup Valuation is critical for several reasons. Firstly, it enables founders to understand the true worth of their business, which is essential when seeking funding or selling the company. Secondly, it helps investors determine the potential return on investment (ROI) and the level of risk involved. In essence, startup valuation is the foundation for investment negotiations between founders and investors.

Understanding Pre-Money and Post-Money Valuations

Two main types of startup valuations are pre-money and post-money valuations. Pre-money valuation refers to the value of the company before making any investment. Post-money valuation, on the other hand, refers to the company’s value after making the investment.

For example, suppose the value of a startup is $5 million, and an investor decides to invest $1 million. In that case, the pre-money valuation is $5 million, and the post-money valuation is $6 million. Understanding these two types of valuations is essential for founders and investors as they determine how much equity an investor will receive after the investment.

The Role of Traction in Startup Valuation

Traction refers to the ability of a startup to gain momentum in the market. It is one of the most critical factors that impact startup valuation. Investors are more likely to invest in companies that have demonstrated traction in terms of customer acquisition, revenue growth, and user engagement.

Startups that demonstrate traction seems less risky investments and are more likely to receive higher valuations. Founders should focus on building traction by creating a solid customer base, generating revenue, and expanding their market reach.

How to Value a Startup – 6 Common Methods 

Several methods and techniques can be used to value a startup. These include:

1. Discounted Cash Flow (DCF) Analysis

DCF analysis is a method to determine the present value of future cash flows. It is based on the concept that the value of a company is equal to the present value of its future cash flows. This method is commonly used by investors to determine the potential return on investment.

2. Market Multiple Valuation

Market Multiple valuations involve comparing the valuation of a startup to similar companies in the market. This method is based on the assumption that companies in the same industry have similar valuations. It is a quick and easy way to value a startup, but it may not provide an accurate valuation. 

3. Venture Capital (VC) Method

The VC method is a widely used method for valuing early-stage startups. It involves estimating the future exit value of the startup and then working backward to determine the current value. This method takes into account the potential for growth, the level of risk involved, and the expected return on investment.

4. The Berkus Method

The Berkus Method is a valuation approach for early-stage startups that was developed by Dave Berkus, a prominent angel investor. The method aims to provide a simple framework for determining the value of a startup based on its current stage of development.

The Berkus Method breaks down the valuation into five key elements. Each of which has a value based on the startup’s progress:

  1. Sound Idea – Assigning a value for the quality and uniqueness of the startup’s idea, with a typical range of $0-$500,000.
  2. Prototype or Product – Assigning a value for the progress made in building a prototype or product, with a typical range of $0-$1,500,000.
  3. Quality Management Team – Assigning a value for the quality of the startup’s management team, with a typical range of $0-$1,000,000.
  4. Strategic Relationships – Assigning a value for the strategic relationships the startup has established, such as partnerships or key customers, with a typical range of $0-$500,000.
  5. Market or Sales Traction – Assigning a value for the startup’s market or sales traction, with a typical range of $0-$1,500,000. 

5. Scorecard Valuation Method

The Scorecard Valuation Method is a simple and straightforward approach to valuing early-stage startups that was popularized by Bill Payne, an angel investor, and entrepreneur. Moreover, this method seeks to standardize the process of startup valuation by using a set of criteria to assess the startup’s strengths and weaknesses.

The Scorecard Method involves four steps:

  1. Determine the average pre-money valuation of similar startups in the same industry and geographic location. This is usually done by analyzing data from angel investor groups, venture capital firms, or other industry sources.
  2. Identify the startup’s key strengths and weaknesses based on several criteria, such as the strength of the management team, the size of the market opportunity, the competitive landscape, and the stage of development.
  3. Assign a score to each criterion, based on the startup’s performance relative to other startups in the same industry and location. The scores are then added up to arrive at a total score.
  4. Multiply the average pre-money valuation from step one by the startup’s total score to arrive at the startup’s pre-money valuation.

6. Book Value Method

The Book Value Method is a valuation approach that calculates the value of a startup based on the value of its assets minus the value of its liabilities. It is a simple and straightforward method that is commonly used for established businesses but may also be applicable to early-stage startups.

The Book Value Method is a useful valuation approach for startups that have a significant amount of tangible assets, such as manufacturing or real estate companies. However, it may not be suitable for early-stage startups that have limited tangible assets or intangible assets that are difficult to value, such as intellectual property.

Valuation For Different Stages

As a startup grows and evolves, its valuation is likely to change as well. This is because the value of a startup is not solely determined by its current performance, but also by its potential for growth in the future. Therefore, it’s essential to understand how startup valuation varies based on different stages.

In the early stages of a startup, such as the pre-seed and seed stages, valuations are typically lower compared to later stages. This is because the company is still in the early stages of development, with minimal traction and revenue. At this stage, investors typically rely on the startup’s team, product, and market potential to determine its valuation.

As a startup progresses to the later stages, such as Series A, B, and C, valuations tend to increase as the company demonstrates growth and a clear path to profitability. At this stage, investors may consider factors such as revenue, user acquisition, and market share when determining the company’s valuation.

Factors That Impact Startup Valuation

Several factors impact startup valuation, including

1. Market Demand

The level of demand for the product or service in the market has a significant impact on startup valuation. Companies that are addressing a significant market need are more likely to receive higher valuations.

2. Competition

The level of competition in the market is another factor that impacts startup valuation. Companies that are operating in a highly competitive market may receive lower valuations than those operating in a less competitive market.

3. Intellectual Property

The level of intellectual property protection the startup has can also impact its valuation. Companies with strong intellectual property protection are more likely to receive higher valuations.

Common Mistakes to Avoid When Valuing Your Startup

Valuing a startup is not an exact science, and there are several common mistakes that founders and investors should avoid. These include:

1. Overvaluing the Startup

One of the most common mistakes that founders make is overvaluing their startups. This can lead to unrealistic expectations and may deter potential investors.

Ignoring market trends is another common mistake when valuing a startup. It is essential to understand the competition in the market, the potential for growth, and the market demand for the product or service.

3. Focusing Solely on Financial Metrics

While financial metrics are essential, they should not be the sole focus when valuing a startup. Other factors, such as the team’s experience, the product or service’s potential, and the market demand, should also be taken into consideration.

Tips for Founders and Investors When Negotiating Startup Valuations

Negotiating startup valuations can be a challenging process, but there are several tips that founders and investors can follow to ensure a successful negotiation.

1. Do Your Research

Both founders and investors should conduct thorough research before entering into negotiations. This includes understanding the competition, the market demand, and the potential for growth.

2. Be Realistic

Both parties should be realistic when negotiating startup valuations. Founders should not overvalue their startup, and investors should not undervalue it.

3. Focus on the Long-Term

Negotiations should focus on the long-term success of the startup. Both parties should work together to ensure the company’s growth and profitability in the future.


Startup valuation is a crucial aspect of the investment process, and understanding its different aspects is essential for both founders and investors. By following the tips and techniques outlined in this guide, founders can accurately value their startup, while investors can make informed investment decisions. Remember, startup valuation is not an exact science, and it requires a balance between financial metrics, market demand, and potential for growth. With the right approach, founders and investors can negotiate startup valuations that are fair and beneficial to both parties.

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1. How do I calculate the valuation of my startup?
The calculation of the valuation may depend on the stage of the startup, financial performance, growth potential, and industry. For an idea-stage startup, idea validation and market valuation can help determine its potential worth. Early-stage startups can be valued based on customer adoption and revenue generated, while revenue and cash flow can be used for startups generating revenue.

2. What are the different ways I can value my startup?
Valuing a startup depends on its stage and achievements. Idea-stage startups can benefit from idea validation and market valuation. Once the idea is validated, early-stage startups can be valued based on early customer adoption and market demand, while taking into account costs associated with sales and marketing, acquiring new customers, and net income. For startups generating revenue, valuation based on revenue and cash flow is common.

3. What are the factors I should consider for my startup valuation?
Factors that can impact startup valuation include funding raised, debt, team size, technology, industry, competition, market size, intellectual property, and growth potential. Early-stage startups may also be valued highly due to their potential. So it’s important to consider all relevant factors and use appropriate valuation methods to arrive at an accurate valuation.

4. Why are startups typically valued lower in their early stages?
Startups are typically valued lower in their early stages because they often have little to no revenue and an unproven business model. Investors view early-stage startups as high-risk and may discount their valuation accordingly. Additionally, early-stage startups may have limited intellectual property, market share, and team experience, which can also impact their valuation. As the startup grows and proves its business model, revenue, and market share, its valuation may increase.

5. Does valuation vary based on the stage of the startup?
Yes, valuation can vary based on the stage of the startup. Early-stage startups are generally considered higher risk and may have lower valuations compared to more established startups generating revenue and with a proven business model. The valuation methods used may also differ based on the stage of the startup, with factors such as intellectual property, market size, and team experience becoming more important as the startup grows.

6. How to increase your startup valuation?
Here’s how to increase your startup valuation:

  • Increase revenue
  • Expand your customer base
  • Improve your products or services
  • Lower your burn rate.
  • Negotiate and secure additional funding
  • Develop your team’s expertise
  • Build intellectual property
  • Increase market share


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Introduction to Debt to Equity Ratio

Debt to Equity Ratio is one of the key financial metrics for startups. In this guide, we will explain what the Debt to Equity ratio is, its formula, the factors affecting it, and its limitations. We will also explore the ideal D/E Ratio and the pros and cons of both high and low ratios. Lastly, we will share tips on how to improve the D/E Ratio.

Before diving into the details, let’s understand the concept of capital structure. Capital structure refers to how a company finances its operations through debt and equity. Debt refers to the money borrowed from external sources such as banks, while equity is the owner’s investment in the business. This ratio shows how much debt a company has concerning its equity.

What is Debt to Equity Ratio?

Debt to Equity ratio is a financial ratio that measures the proportion of a company’s total liabilities to its shareholders’ equity. Simply, it shows how much the company relies on debt to finance its operations. The higher the ratio, the more the company has borrowed and is burdened with debt.

D/E Ratio Formula

The formula for calculating D/E Ratio is straightforward, and it is calculated by dividing a company’s total liabilities by its shareholders’ equity. The formula is as follows:

Debt to Equity Ratio = Total Liabilities / Shareholders’ Equity

Understanding the Factors Affecting Debt to Equity Ratio

Several factors affect a company’s Debt to Equity Ratio. Some of the factors are:

Industry Norms

The industry in which a company operates plays a significant role in determining its Debt to Equity Ratio. Certain industries require high debt to finance their operations, while others may require less.

Business Life Cycle

The stage of a company’s life cycle also plays a significant role in determining this ratio. A startup may have a higher ratio as it relies on debt to finance its operations. A mature company, on the other hand, may have a lower ratio as it has established a steady revenue stream and can rely on equity financing.

Interest Rates

Interest rates affect a company’s borrowing cost, which, in turn, affects its Debt to Equity Ratio. A company may borrow more if interest rates are low, resulting in a higher ratio. Conversely, a company may borrow less if interest rates are high, resulting in a lower ratio.

Example of Debt-to-Equity Ratio Calculation

Let’s understand its calculation with an example. Suppose a company has total liabilities of $500,000 and shareholders’ equity of $1,000,000.

Debt to Equity Ratio = Total Liabilities / Shareholders’ EquityDebt to Equity Ratio = $500,000 / $1,000,000Debt to Equity Ratio = 0.5

In this case, the Debt to Equity Ratio is 0.5, meaning the company has $0.50 of debt for every $1.00 of equity.

Ideal D/E Ratio

It varies across industries and companies. Generally, a ratio of 1:1 is considered healthy, indicating that the company has an equal amount of debt and equity. However, some industries, such as utilities, may have higher ratios, while others, such as technology companies, may have lower ratios.


While this ratio is a useful financial metric, it has limitations. Some of the limitations are:

Industry Differences

As mentioned earlier, different industries have different Debt to Equity Ratio norms. Comparing the ratios of companies in different industries may not provide an accurate picture.

One-Dimensional View

It is a one-dimensional view of a company’s financial health, and it does not consider other financial metrics such as profitability, cash flow, and liquidity.

Different Accounting Methods

Different accounting methods can affect this ratio. For example, using the LIFO method for inventory valuation can result in a lower equity value, thereby increasing the ratio.

Pros and Cons of High Debt to Equity Ratio


● A high ratio indicates that the company is relying on debt to finance its operations, which can lead to tax benefits.

● Debt financing is cheaper than equity financing as interest payments are tax-deductible.

● It also shows that the company is taking advantage of growth opportunities.


● A high ratio indicates that the company is heavily dependent on debt, which can be risky during economic downturns.

● High debt levels can lead to higher interest payments, affecting the company’s profits.

● A high ratio can result in a lower credit rating, making it harder for the company to borrow in the future.

Pros and Cons of Low Debt to Equity Ratio


● A low ratio indicates that the company is less reliant on debt, reducing the default risk.

● A low ratio can lead to higher credit ratings, making it easier for the company to borrow in the future.

● A low ratio can result in lower interest payments, improving the company’s profitability.


● A low ratio can indicate that the company is not taking advantage of growth opportunities.

● Equity financing is costlier than debt financing as it involves sharing ownership, which can dilute the existing shareholders’ stake.

● Also a low ratio can also indicate that the company is not using leverage to its advantage.

How to Improve Debt to Equity Ratio

If a company has a high ratio, it can take the following steps to improve it:

● Pay off debt: The company can use its profits to pay off debt, thereby reducing the ratio.

● Issue new equity: A company can issue new equity to raise funds and reduce its reliance on debt.

● Renegotiate debt terms: Also a company can renegotiate the terms of its debt to reduce interest rates or extend the repayment period.

If a company has a low ratio, it can take the following steps to improve it:

● Take on more debt: The company can take on more debt to finance growth opportunities.

● Buy back shares: Similarly company can buy back some of its shares to increase its equity value.

● Issue less equity: Also the company can issue less equity to reduce dilution.


Debt to Equity Ratio is a crucial financial metric that measures a company’s reliance on debt to finance its operations. It is affected by several factors, including industry norms, business life cycles, and interest rates. While a high ratio can lead to tax benefits and growth opportunities, it can also be risky during economic downturns. On the other hand, a low ratio indicates that the company is less reliant on debt, which reduces the risk of default. To improve this ratio, companies can pay off debt, issue new equity, renegotiate debt terms, take on more debt, buy back shares, or issue less equity.

Now that you have a better understanding of D/E ratio, it’s time to explore the other essential startup financial metrics.


What is a good debt-to-equity ratio?

The optimal ratio can vary depending on the industry. However, a ratio of 1:1 or lower is considered good. This means that the company has equal debt and equity financing, indicating that it is not overly reliant on borrowed funds to finance its operations.

How does the debt-to-equity ratio vary across different industries?

The D/E ratio varies across industries due to variations in capital requirements, operating risks, regulatory environment, revenue stability, and financial goals.

What is total debt?

Total debt is the money a company owes to creditors and lenders, including short-term and long-term debt obligations. This may include bank loans, bonds, lines of credit, leases, and other forms of borrowing. Total debt is typically reported on a company’s balance sheet as a liability.

What does a high debt-to-equity ratio indicate?

A high ratio is considered risky for lenders and investors as it indicates that a company has a relatively large debt compared to equity.

What does a low debt-to-equity ratio indicate?

A low ratio indicates that a company has a relatively small amount of debt in proportion to its equity. It means the company has more owned capital than borrowed capital.


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Key Financial Metrics

Image showing illustration of startup founders tracking the financial metrics of their startup

As a startup founder, you may be familiar with the basics of business finances and financial metrics like income, margin, balance sheet, etc. But it’s easy to overlook some key financial indicators that could easily mean the survival or failure of your business. Here are 5 key financial metrics that all founders should track to ensure their business is on the right path.

1.)Cash Flow

The ability to pay your expenses is a basic financial stability requirement, which means keeping an eye on your cash flow is critical. Cash flow is the net change in your cash and cash equivalents over a period of time, so tracking the amount of money coming in and out of your business is important. That way, you can identify any potential issues with cash shortages or delays in collecting payments.

2.)Burn Rate

Another important metric to watch is your business’s burn rate. It is the rate at which your business is spending its available cash. By tracking the burn rate, you can gauge how quickly your business is running through its available capital. It will in turn affect its ability to stay afloat over the long run.

3.)Revenue And Expenses

It’s important to track the revenue and expenses of your business. Both for the purposes of staying on top of cash flow and for understanding overall profitability. Pay attention to trends in your spending and income. So you can determine where you need to cut costs or identify new and profitable opportunities.

4.)Debt-to-Equity Ratio

As a startup founder, you need to be aware of how much debt your business carries. The debt to equity ratio indicates the amount of debt your company has relative to its equity. If your debt-to-equity ratio is getting too high, it may be time to consider getting new sources of equity or renegotiating terms on your debt.

5.)Return on Investment

Finally, track return on investment (ROI) on major investments or projects, so you’ll have a better sense of what activities are adding value to your business. This can help you make decisions on where to focus or invest your time or resources in the future.


In summary, tracking these 5 key financial metrics can help startup founders get a better handle on their business’s finances and ensure the long-term success of their venture. Keeping an eye on cash flow, burn rate, revenue and expenses, debt-to-equity ratio, and return on investment will help you stay ahead of potential financial problems and make smart decisions for your business.

Read related topics: Key SaaS metrics for startups , Understanding Client concentration


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SVB Collapse

What was Silicon Valley Bank ?

Silicon Valley Bank is a state-chartered commercial bank headquartered in Santa Clara, California, that failed on March 10, 2023, and its assets are now under the care of the Federal Deposit Insurance Corporation (FDIC). It was the 16th-largest bank in the U.S. and Silicon Valley’s largest bank based on deposits. The bank mainly comprises the primary business of SVB Financial Group, a publicly traded bank holding company with other subsidiaries. 

History Of Silicon Valley Bank

Silicon Valley Bank was founded in 1983 in San Jose, California, by Bill Biggerstaff, Robert Medearisa, and Robert Smith. 

The company went public in 1988 and eventually grew to be one of the largest commercial banks in the U.S. It saw major growth during and after the pandemic between 2019 and 2022, where it rose from the 34th largest bank to the 16th. 

Why did Silicon Valley Bank collapse?

As Silicon Valley Bank was founded, the banking industry needed a better understanding of startups, especially those that didn’t generate revenue. Startups wait for income, so the bank structured its loans to manage risk based on business models.

 The bank connected customers to its extensive venture capital, law, and accounting firm network. Its primary strategy was collecting deposits from businesses financed through venture capital. It was then expanded into banking and financing venture capitalists by adding services to allow the bank to keep clients when they mature from their startup phase. Initially, startup founders seeking bank loans pledged about half their shares as collateral. After a few years, the failure rate dropped to about seven per cent, reflecting low failure rates and founders’ willingness to pay back their loans. The bank covered the losses by selling the shares to interested investors. Eventually, it became typical for venture capital firms’ term sheets to the requirement of startups to create a bank account at SVB specifically.

The significant increase in interest rates is a recurring theme in the failure of SVB. The U.S. Federal Reserve has quickly raised its benchmark policy rates from the historically low levels of last year to combat inflation. This expected to reach a 40-year high in 2022 and cause the economy to slow down and investments to decline.

Investors that pour money into riskier investments when cheaper typically have a poor risk tolerance in an environment with high interest rates. Most of SVB’s clients, startups, saw a big decline in their investments as interest rates kept rising.

Image showing largest bank failures including Silicon valley bank in the U.S as of 2023,by total assets
Stats showing largest bank failures in the U.S by total assets (As of 2023)

The Reason The Bank Forced To Sell Its Holdings At a Loss:

 Major venture capitalists (VCs), who had sizable accounts with the bank and were SVB’s clients, provided the majority of the funding for early-stage firms. SVB’s deposits increased thrice to $189.20 billion in 2021 amidst the VC industry boom. However, since the IPO Boom ended in 2022, there weren’t many withdrawals. The bank’s loan operations could not keep up with the deposit surge. As a result, the bank bought over $80 billion in mortgage-backed securities (MBS) with these deposits for its hold-to-maturity (HTM) portfolio – with an average yield of 1.56%.

These MBS lost value due to the US central bank’s continued raising interest rates. This resulted from investors’ ability to purchase long-term “risk-free” bonds from the Fed for a 4-5% yield. Nine times in 2022, the US Federal Reserve raised interest rates steadily to rein in inflation. Bond yields often increase as interest rates rise. Due to their safety, yields become more appealing than equities after crossing a certain threshold. Bonds became more appealing to investors due to growing interest rates and yields, which decreased the value of the bonds owned by banks. Bond prices and yields have the opposite relationship.

The graph shows the distribution of  different funding types of silicon valley bank.

Why did they rush to the bank?

It is hard to nail down the precise cause of a run; crowd psychology is at play. Yet after the bank announced a capital raise and the sale of a large fraction of securities at a loss, concerns might have surfaced. The bank catered to startups in the technology and venture capital. Because they were corporate deposits, several exceeded the $250,000 insurance cap the Federal Deposit Insurance Corp set. SVB’s uninsured deposits exceeded more than $150 billion at the previous year’s end.

Several SVB clients started withdrawing money from the bank to fulfil their liquidity needs. Interest rates forced initial public offerings, another method of raising capital for startups, to come to a screeching halt in the US. To continue allowing withdrawals, the lender was compelled to look into its alternatives for raising money. In the hours before the bank’s collapse, the run worsened as several startups attempted to withdraw money. Many failed while others were successful, which exacerbated the fear and compelled the FDIC to take charge.

SVB Might Have Been Able To Hold Onto Paper Losses Until Rates Fell

The bank might have theoretically gotten by letting securities mature and getting its money back. It’s possible that until things changed, deposits were being released rather steadily. But, after a spike in deposit withdrawals, it didn’t have that time.

The bank then faced a tidal wave of $42 billion in deposit withdrawal requests last week. It failed to raise funds needed to cover the outflows, prompting regulators to respond with force.

Unsuccessful fundraising effort

SVB liquidated a $22 billion bond portfolio made up primarily of US Treasuries, whose values had fallen due to the Fed’s tightening of monetary policy, in an effort to pay for the redemption. The lender was compelled to record a $1.8 billion loss. SVB attempted to close the gap by financing $2.25 billion by selling preferred convertible stock and equity but was unsuccessful. The lender rushed to secure alternative finance on Friday by selling the business.

Where did the uninsured deposits end up?

The FDIC announced on Friday that SVB-insured depositors would have access to their money by Monday am at the latest. The original statement stated that uninsured depositors would first receive a dividend and then receivership certificates for any outstanding balances that might be paid out over time, implying that payback wasn’t guaranteed. But then, on Sunday, the FDIC said it would use a “systemic risk exemption” to cover the uninsured deposits of SVB and Signature, together with the Treasury Department and Secretary Janet Yellen, and President Biden. On Monday morning, customers could also access their deposits.

Immediate Impact: VC Market

The immediate impact of inaccessible bank accounts on the VC market Startups that kept operating funds with SVB would have experienced an existential crisis. Due to a significant lack of available cash induced by the delayed fund raising climate, the VC sector was already in a complicated situation. The good news was that business were able to access the total amount of their deposits on Monday, for the beginning of a successful operation. With a backup finance plan, many firms could get capital quickly. The $152.0 billion in uninsured deposits SVB includes startup companies’ working capital.

There was an immediate operational issue for businesses that need to pay wages or pay for the usage of services, whether or not all that capital was eventually recovered. Investors would have major impact by the loss of portfolio firms. Not just by corporate closures, had access to this money been lost. Due to limited partners’ lowered confidence in the venture market due to these losses, there would have been fewer investment vehicles available and a more pronounced decline in short term venture funding.

Impact on Depositors and Investors

Bank deposits of up to $250,000 per depositor per bank for each account section undergo insured by FDIC. Silicon Valley Bank accounts with $250,000 deposits would get their money back. Unfortunately, most of the funds in Silicon Valley Bank were uninsured as they had more than $250,000 of deposits. 

However, investors won’t be so lucky, as those who own stock in SVB Financial Group may not get their money back.

Implications for the venture lending market

The abrupt fall of SVB significantly impacts VC-backed start ups that currently hold a loan contract with the bank. Especially when it is unclear when the bank will get sold and whether existing loan terms and conditions will be honoured when an acquirer steps in. SVB has provided debt solutions to start ups across the venture ecosystem, ranging from pre-revenue, early-stage startups to late-stage ones, with up to $75 million in recurring revenues. In 2022, SVB issued $6.7 billion of venture debt, making up 9% of its loan portfolio. This type of debt is “investor-dependent” (ID), meaning that loan origination is contingent upon the existing investors’ commitment to a company’s future success. 

The bank’s collapse has had a particularly detrimental effect on early-stage startups that have yet to develop vital financial metrics and primarily rely on their investor syndicate to secure debt. For years, startups in nascent stages of development had access to term loans from SVB with low-interest rates and ample structural flexibility. With its collapse, early-stage startups without a steady revenue stream will likely encounter severe headwinds seeking alternative debt financing. Late-stage companies, on the other hand, face a different set of issues. Not only do these companies require larger loan packages, which makes borrowing from debt funds even more costly, but the private credit market, a significant player in debt financing for companies operating at a more developed stage, also faces market uncertainty. This is thus adding another layer of challenges. Percentage-wise, the bank has been shrinking the weight of its venture debt portfolio.

Timeline Of The Collapse

The SVB crash happened rapidly throughout just a couple of days. Following is a timeline of events: 

March 8: SVB announced its $1.8 billion loss on its bond portfolio and planned to sell both common and preferred stock to raise $2.25 billion. 

March 9: The stock of SVB Financial Group, which is the holding company of SVB, crashed at the market opening. Other major banks’ stock prices also took a hit. 

March 10: SVB Financial Group stock trading gets halted. Federal regulators announced a takeover of the bank.

March 17: The parent company of Silicon Valley Bank, SVB Financial Group filed for bankruptcy.

March 26: First Citizens Bank acquired all of Silicon Valley Bridge Bank except for $90 billion of securities and other assets that remained in FDIC receivership.

Source :S&P CApital IQ

Key takeaways

• Over nearly 40 years, SVB has become many successful venture startups’ leading lenders and banking partners. This brand recognition and trust resulted in SVB amassing more than $175 billion in total deposits. Since liquidity options for many startups dried up, these enterprises began to rely heavily on fund withdrawals from their bank accounts to extend the runway. To fund these withdrawals, SVB forced to sell many Treasuries and other securities. This devalued due to recent interest rate hikes. Fearing for the safety of their capital, depositors began to withdraw their funds in bulk. SVB could not fulfil withdrawal requests, and the FDIC seized the bank on March 10. Fortunately, the Fed assured all depositors that 100% of their capital would be safe and accessible by Monday.

• SVB’s failure further tightens the squeeze on an already sluggish venture market. Quarterly capital invested fell over 60%. And the deal count was down almost 25%, despite high relative numbers on a historical basis. Re-allocating resources and banking will only lead to a further slowdown in the financing market in Q1 2023. Bank loans were mostly made to GPs in both VC and PE. Thus allowing these funds to access capital more quickly for deals. 

• The lightning strike of SVB’s collapse led to concerns over a possible contagion effect. Mainly on other regional banks collectively suffering from the same unintended consequences of the Fed’s interest rate hikes. Now that the lender of choice for many investors for decades suddenly gone. So it expects to see startups and investors looking to raise funds from non-bank lenders. While it remains unclear what will happen to companies with loan contracts with SVB. As an acquisition is yet to announce,  VC-backed startups rush to raise debt from non-bank entities may push prices higher.

 • Besides SVB’s venture debt portfolio wasn’t the primary cause of the bank’s abrupt fall, the critical role the bank has been playing in venture lending. It sounded alarms to active players in the venture market. For example, Hercules Capital is one of the largest business development companies that focus on venture lending. It released a business update in response to SVB’s collapse on Monday morning. Venture debt lenders will likely receive intensified inquiries and closer scrutiny in the short term. 

What is creeping up next?

The sale of SVB proceedings will be under careful observation. The focus will also shift to longer-term concerns about the soundness of banks that investors are already raising. If interest rates continue where they are, the Fed’s borrowing facility may address immediate liquidity needs. Still, it won’t be able to restore the value of banks’ securities portfolios. In many ways, banks had slipped Washington’s attention in the years following the financial crisis.


1.)What led to the failure of Silicon Valley Bank?

The bank’s balance sheets were overexposed, causing it to sell bonds at a loss to pay the withdrawal. And its biggest customers withdrew deposits rather than borrow at higher interest rates, which caused the bank to go bankrupt.

2.)Why did Signature Bank and Silicon Valley Bank fail?

Clients of SVB were withdrawing deposits faster than the bank could cover them with cash reserves, so it opted to sell $21 billion of its securities portfolio at a $1.8 billion loss to meet its obligations. The lender tried to raise more than $2 billion in new capital due to the drain on equity capital.

3.)What occurs to SVB staff members? Can SVB bounce back?

Key executives were fired, including Greg Becker, the CEO. Regulators are currently unwinding the bank and asking a lot of other staff to perform the same duties as they did before. Regulators may attempt to reclaim funds used to cover deposits by selling the bank. The SVB Financial Group’s larger business also include other areas that may auctioned off, like an investment bank.

4.)Could the bankruptcy of SVB trigger a recession?

The unsecured deposit guarantee may limit immediate effects, such as businesses holding money at SVB. Yet, lending that would tie up their resources could restricted if other banks are concerned about their capital or deposits. Still, the events altering the Federal Reserve’s rate of interest rate hikes is a key question.


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Understanding Strategic Forecasting


Financial forecasting is an important part of financial planning and budgeting. It is the process of estimating future financial outcomes for a company or organization based on past and current financial data and market trends. So the goal of financial forecasting is to provide insights into future revenue, expenses, cash flows, and profitability, and help organizations make informed financial decisions.

Unfortunately, many finance leaders create forecasts based on guesses rather than solid data, which ultimately leads to financial reports that don’t really mean a whole lot.

So in this blog, we’re going to explore the very opposite: strategic forecasting.

What is Strategic forecast?

Strategic forecasting is an approach to financial forecasting which combines historical performance with the expected changes in revenue and expenses from aspects like economic conditions, market trends, and strategic growth initiatives. Also strategic forecasting involves using data, analysis, and insights to anticipate and plan for future events and trends that may impact a company’s performance.

Indeed a revenue forecast tells an estimate of how much revenue a business is expected to generate over a certain period of time, usually a year. A simple revenue forecast looks at historical performance of the business and map that forward into the future.

Strategic forecast takes a slightly smarter approach by looking at other variables along with historical trends, including:

  • Revenue drivers
  • Market trends
  • Employee headcount
  • Economic conditions
  • New upcoming products or features

Variables of strategic forecasting

A number of different variables influence strategic forecasting. So when creating your own strategic forecast, draw from these variables to make your estimates as accurate as possible.

1.) Historical Data

Historical Data is certainly an important variable of strategic forecasting that most of us look to first. It uses past financial data to predict future revenue for a business or organization. This data typically includes information on sales volume, revenue, profit margins, and other financial metrics for a given time period, such as the previous quarter or year.

Historical data help identify patterns and trends in sales and revenue growth over time. This information is then used to develop forecasting models that estimate future revenue based on factors such as market conditions, consumer behavior, and industry trends.

2.) Revenue Drivers

What are revenue drivers?

Revenue drivers are the things that drive your revenue. They are the variables your revenue model is based on. Furthermore using the data and insights from revenue drivers, you can more accurately predict what your revenue will look like in the future.

Revenue drivers generally fall into categories of sales or marketing. The marketing campaigns you run to generate new revenue for the business. Similarly social media ads, PPC ads, partnerships, media buys, or any other channel, are all ways to drive revenue for your business.

3.) Employee Headcount

Depending on the role, employee headcount can have a major impact on revenue in several ways, including increased productivity, improved customer service etc.

For example, If you double the headcount of your sales team, you should be able to bank on doubling sales volume, all things being equal.

Analyze goals for the headcount growth as well as historical trends in this area, and then equate that to revenue.

4.) Economic Conditions

Economic conditions can have a significant impact on the profitability and revenue-driving capabilities of a business and predicting them can be challenging.

Here are some ways in which economic conditions can affect a business:

  • Consumer spending
  • Interest rates
  • Competition
  • Inflation
  • Government policies

Make considerations for the possibility of economic changes, and how they’ll impact your profitability and revenue-driving capabilities.

Market trends refer to the overall direction of the market or industry. Hence these trends can include changes in consumer behavior, advances in technology, shifts in regulatory or economic policies, and emerging opportunities or threats.

Take stock of any trends in your market, and analyze how they might change over the next financial year and apply these predictions to your revenue forecast.

Moreover incorporating market trends into forecasting can help businesses make more accurate and informed decisions about future investments, resource allocation, and growth strategies.

6.) New Product releases

Analyze whether you see a boost in sales when you release new product updates or features? Look at your historical data for an indication.

Best practices for implementing a strategic forecasting process.

  1. Involve Key Stakeholders: Strategic forecasting requires buy-in and support from key stakeholders, including senior leaders, department heads, and front-line employees. Thus involve these stakeholders in the process from the beginning to ensure their input and support.
  2. Use Data-Driven Analysis: Strategic forecasting should be based on data-driven analysis, including both internal data (such as financial and operational metrics) and external data (such as market trends and competitor analysis). Use a combination of qualitative and quantitative data to inform your analysis.
  3. Prioritize Objectives: Prioritize your objectives based on their importance and feasibility, and focus on the ones that are most critical to achieving your long-term vision.
  4. Develop a Realistic Timeline: Strategic forecasting requires a long-term perspective, but it’s important to set realistic short-term goals and timelines. Break down your objectives into smaller, achievable milestones that can be accomplished in a reasonable timeframe.
  5. Clear and Frequent communicate: Effective communication is critical to the success of strategic forecasting. Ensure that everyone involved in the process understands the objectives, action plans, and timelines, and communicate progress and updates frequently.
  6. Monitor and Adjust: Strategic forecasting is an ongoing process. Also it monitor your progress towards achieving your objectives and adjust your plans as necessary in response to changes in the market or other factors.


Strategic forecasting is one of the most important skills every great CFO needs to master. Creating a strategic forecast for your business requires a deep understanding of your business, industry, and market. By following these steps, you can create a plan that helps you achieve your long-term vision and stay competitive in a rapidly evolving business environment.


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Union Budget 2023


The Union Minister of Finance and Corporate Affairs, Nirmala Sitharam, presented the Union Budget 2023-24 in Parliament on Wednesday. The Union budget was the 5th budget of Modi 2.0. Big boosters for taxpayersrailwaysjob creation and capex were announced. Nirmala Sitharaman also highlighted that the Indian economy is on the right path and headed towards a bright future.

Aim of Union budget 2023:

  • Opportunities for citizens with a focus on youth.
  • Growth and job creation.
  • Strong and stable macroeconomic environment.
  • Also enable women’s self-help groups to reach the next stage of economic empowerment.
  • Similarly helping self-help groups with supplying raw materials, marketing products and branding.

Seven priorities of Saptarishi

Image showing the 7 priorities of Saptarishi

Major Highlights

  • Per capita income has more than doubled to ₹1.97 lakh in 9 years.
  • The Indian economy has jumped from the 10th to the 5th largest in the world in the past nine years.
  • According to government estimates, the nominal GDP will grow by 10.5% in 2023-24.
  • 7,400 crore digital payments of ₹126 lakh crore took place through UPI (Unified payments interface) in 2022.
  • Around 220 crore Covid of 102 crore persons completed.
  • EPFO (Employees provident fund organization) membership has more than doubled to 27 crores.
  • 11.7 crore household toilets built under Swachh Bharat Mission.
  • Similarly 47.8 crore PM Jan Dhan bank accounts.
  • Insurance covers 44.6 crore people under PM Suraksha Bima and PM Jeevan Jyoti Yojana.

Main Tax proposal in the finance bill

  • There have been changes to the income tax regime. There are now five tax slabs instead of six.
  • A charitable trust must apply 85% of its income within a year to qualify for income tax exemption.
  • Online game winnings will be subject to a 30% tax deductible at source.
  • Capital gains from the sale of residential property can deduct to the extent of the purchase or construction of another residential property. The deduction will capped at Rs 10 crore.
  • Income from investments in life insurance policies will be taxable if a premium of Rs 5 lakh is paid in any year.
  • Moreover this extension allows startup companies to deduct up to 100% of their profits if they incorporate within this period and meet other conditions. Hence the end date of the deduction period extend from 31 March 2023 to 31 March 2024.

Direct Taxes

New Income tax slabs under new tax regimes:

Table showing New Income tax slabs under new tax regimes.
  • An individual with an annual up to three lakhs will have tax exemption.
  • Individuals with an annual income of 9 lakhs will pay 5% taxes.
  • The annual income of 15 lacks will fetch Rs.1.5 lakh tax, i.e. 20%.
  • Tax exemption removed in insurance policies with premiums more than Rs 5 lakh.

Indirect Taxes

  • A total of Rs 15,29,200 crore is expect to collected in indirect tax in 2023-24. Thus the government estimates it will raise Rs 9,56,600 crore through GST.
  • The number of basic customs duty rates on goods other than textiles and agriculture reduced to 13 from 21.
  • Crude, glycerine basic custom duty reduced to 2.5%.
  • Silver bars import duty hiked to align it with gold and platinum.

What gets cheaper

Image showing what gets cheaper in 2023

What gets costlier

Image showing what gets costlier

Allocation of specific ministries

Image showing fund allocation for specific ministries.

Saving Schemes

  • In the budget the maximum deposit limit for Senior Citizen Savings Scheme increase to Rs 30 lakh from Rs 15 lakh.
  • Similarly the Monthly Income Scheme limit double to Rs 9 lakh and Rs 15 lakh for joint accounts.
  • Mahila Samman Saving Certificate, a one-time new saving scheme for women to be made available for two years up to March 2025.

Sector-wise highlights

1. Banking

Govt makes amendments to Banking Regulation Act to improve governance in banks.

2. Jobs

  • The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0 to enable much Indian youth to take up industry-relevant skill training.
  • Similarly 30 Skill India International Centers will be set up across different States to upskill the youth for international opportunities.

3. Infrastructure & Investments

  • Creating urban infrastructure in Tier 2 and Tier 3 cities via establishing UIDF.
  • Increased capital investment outlay by 33.4% to Rs.10 lakh crore.
  • Continuation of a 50-year interest-free loan to State governments to incentivize infrastructure investment.
  • Highest ever capital outlay of Rs.2.4 lakh crore for Railways

4. Energy & Environment

  • Rs 35,000 crores priority capital for the energy transition.
  • Battery Energy Storage Systems with 4,000 MWh capacity will be supported with viability gap funding.
  • Companies, individuals, and local bodies will be eligible for a Green Credit Programme under the Environment (Protection) Act of 1986 to encourage and collect resources for environmentally sustainable actions.
  • For funds to be allocated for replacing old polluted vehicles.
  • Moreover Setting up 10,000 bio inputs resource centres to facilitate farmers to adopt natural farming.

5. Health

  • One hundred fifty-seven new nursing colleges are going to establish.
  • Sickle cell anaemia elimination mission is going to launch covering seven crore people in the age group 0-40 in affected tribal areas.
  • A new programme to promote research in pharmaceuticals will be launching.

6. Education

  • National Digital libraries are to be set up for children and adolescents.
  • States to set up physical libraries at panchayat and ward levels.
  • Revamped teacher’s training via District Institutes of Education and Training.

7. Agriculture

  • An Agriculture Accelerator Fund will set up to encourage agri-startups in rural areas.
  • Also a sub-scheme of PM Matsya Sampada Yojana will launch with an investment of Rs 6,000 crore to support fishermen, fish vendors, and MSMEs.
  • Decentralized storage capacity will set up for farmers to store their produce.
  • 20 lakh crore agricultural credit targeted at Animal husbandry, Dairy and fisheries sector.

8. Finance

  • Setting up National Financial Information Register to enable efficient lending, promote financial inclusion and enhance financial stability.
  • Similarly setting up a Central data processing centre for faster handling of administrative work under the companies act.

9. Urban development

  • An Urban Infrastructure Development Fund will establish to develop urban infrastructure by public agencies in tier-2 and tier-3 cities.
  • States and cities will encourage to undertake urban planning reforms such as efficient land use and transit-oriented development.

10. Research And Development (R&D)

  • Three centres of excellence for R&D in Artificial Intelligence (AI) will establish in select educational institutions.
  • Surely 100 labs will set up in engineering institutions for developing 5G applications.

11. Sports

  • Rs 3,397.32 crore is allocated to Sports, an increase of Rs 723.97 crore and the country’s highest-ever sports budget allocation.
  • Moreover National sports federation (nsfoi) gets a hike of Rs.325 crore.
  • Sports Authority of India (SAI) receives Rs.785.52 crore.
  • Also 1,045 crore is allocated to ‘Khelo India’.

12. Space

  • Department of Space has been allocated Rs.12,544 crore.
  • Rs 408.69 crore is allocated to Physical Research Laboratory.

Budget Estimates of 2023-24

  • Total Expenditure: Clearly the government estimate to spend Rs 45,03,097 crore in 2023-24, an increase of 7.5% over the revised estimate of 2022-23.
  • Revenue Expenditure: Out of the total expenditure, revenue expenditure estimate to be Rs 35,02,136 crore, an increase of 1.2%.
  • Capital Expenditure: Capital expenditure estimate to be Rs 10,00,961 crore, which is a 37.4% increase. The increase in capital expenditure is due to an increase in capital outlay on transport (including railways, roads and bridges, and inland water transport) by Rs 1,28,863 crore (36.1% increase).
  • Total receipts: Government receipts (borrowings excluded) are estimated to be Rs 27,16,281 crore, an increase of 11.7% over the revised estimates for 2022-23.
  • Estimated GDP growth: The nominal GDP will grow at 10.5% in 2023-24.
  • Transfer to states: The central government will transfer Rs 18,62,874 crore to states and union territories. Thus an increase of 8.9% over the revised estimates for 2022-23.

Check our Year In Review 2022 blog, where we cover all the major events and highlights of the business and tech world in the year 2022.


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Understanding Embedded Finance

What is Embedded Finance?

Embedded finance is a fintech sub-sector and the term refers to integration of financial services into non-financial business or services. This integration allows businesses to provide financial services to their customers without them having to leave their platform. For example, every time you pay for your purchased goods or services online without having to leave the app, its the magic of embedded finance. Other examples include digital wallets, payment processing, pay-later, insurance, loans, etc. This became trendy in the last couple of years, as it boomed particularly in 2020.

Embedded Finance Technologies

Embedded Payments

This is a type of payment system that is integrated into the overall functionality of app or website. Embedded Finance allow users to make payments within the application or website without the need to leave and go to a separate payment processing page. Embedded payments were the first financial service to be incorporated into non-financial products. And probably the most well-known type of embedded finance offering. Some of Embedded payments use cases are subscription based services, E-commerce, in-game purchases, crowdfunding campaigns, online marketplaces etc. Google Pay, Amazon Pay and Venmo are few examples of embedded payment applications.

Embedded Buy Now Pay Later Installment Plans

Companies now offer Buy now Pay later services where the consumers can get the product right away and pay for it over time in installments. This installment plan option undergo presentation during mobile checkout. For example, Amazon Pay offers a Pay later option of 3 to 12 interest-free installment plans.

Embedded Lending

Embedded lending is another layer of Buy now Pay later. It refers to the integration of lending functionality into the existing processes and systems of a company through their embedded finance offerings. This type of lending allows companies to offer financing options directly to their customers, without the need for customers to go through a separate lending institution. Consumers don’t need to go to the banks right now to get a loan now. Example: Using Instant Settlements for Marketplace Sellers, marketplace sellers can receive loans based on their sales data which is fetched directly from the marketplace platform utilizing safe and secure APIs in seconds.

Embedded Investing

Embedded investing refers to the integration of investment options directly into a company’s existing products, services, or platforms. The goal of embedded investing is to make it easier and more convenient for customers. This is by enabling them to invest in various financial assets without leaving the platform. Example: Embedded investment firms include programs like Robinhood, Cash App, and Acorns through which selling, buying, and exchanging stocks are all possible without leaving the app or interacting with an investment advisor.

Embedded Insurance

Embedded insurance is integration of insurance products and services directly into a company’s existing platforms. This enables any third-party provider to integrate insurance products into its customers’ purchase journeys seamlessly at a low cost. They are a much better option than the complicated traditional process of buying insurance plans. Here you no longer need to meet an insurance agent to get coverage for an upcoming trip or a new purchase.

Example: Travel or Booking companies have embedded the insurance application process into the checkout experience. Here travelers can purchase it during booking time.

Why Embedded Finance matters?

The market size of embedded finance has grown rapidly in last few years. Many non-financial businesses are offering embedded finance services already. The largest usage of embedded finance today is for payments. It includes the possibility for e-commerce companies to perform payments on their sites without entering bank details.

Stats & Numbers

  • This finance predicts to become a multi-trillion dollar opportunity. Its market value estimate to be bigger than the current value of all fintech startups and global banks and insurers combined.
The stats shows the estimated market value of embedded finance by 2030.
Source: Simone torrance

  • Embedded finance have attracted more than 3 billion dollars in funding in 2021. This is 3X the growth compared to 2020. ( according to a research by Dealroom).
Embedded finance stats showing funding it recieved in 2021.
  • Opportunities by sector:

Following is estimated sector wise opportunity of Embedded Finance Industry by 2030

Image showing sector wise oppurtunity of embedded finance industry by 2023
  • Marketplaces are increasingly embedding financial services to seek higher valuation than their peers. Fintech enabled marketplaces receive 6.7X higher valuation compared to the other. Few examples of fintech enabled marketplaces are Airbnb, Uber, Shopify etc.

Players in the embedded finance ecosystem

Following are the few of the major embedded finance companies around the world:

Embedded finance companies around the world

Embedded Finance and Banking as a service (BaaS)

Embedded finance and BaaS have attracted billions of dollars in funding and grew 3x in 2021. Both expect to take the world by storm over the coming years.

What is the difference between Embedded Finance and BaaS?

Embedded Finance and BaaS go hand in hand. Even though each differ in their focus areas, there always seems to be a confusion on how they differ from one another.

Embedded finance is more front-end and focuses on the customer experience. Also it provides financial solutions along with buying other goods or services. Here, financial services and products directly integrate into an existing services or platforms of a business.

BaaS is a model where banks and financial institutions provide banking services and technology to other companies, allowing them to offer financial services to their own customers. BaaS is a bank-like service that have more digital consumption. They typically involves licensing of banking infrastructure, such as payment processing and lending capabilities, to non-bank companies.

Industries that are adopting Embedded Finance techs

Embedded finance is rapidly expanding and supports the growth of non-financial corporations, including consumer goods brands, retailers, travel, tech and software businesses, automakers and insurance firms. They are providing great growth opportunity in lucrative B2C and B2B segment in various sectors including E-commerce, Travel, Healthcare, Education, Pharma, Real Estate and Entertainment.

Retail & E-commerce estimate to have a growth opportunity of $3500 billion dollars, whereas healthcare and education expect to grow up-to $1500 and $500 billion dollars by 2030. Other sectors including real estate, travel, mobility, energy, pharmaceuticals expect to have a total growth opportunity of $1500 billion dollars by 2030.

What is the Future of Embedded Finance? How will it change Fintech?

The future of Embedded finance is bright and the market expect to grow into multi trillion dollars in value by 2030. Moreover popularity of digital platforms, growth of mobile E-commerce, rise of fintech and the sharing economy are the main driving factors of embedded finance.

With the rise of digital transformation and the growing demand for financial services that are convenient, accessible, and integrated into everyday life, embedded finance is well-positioned to meet these needs.


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Latest SaaS Tools For Startup

As a startup or small business, staying on top of the latest technology trends is crucial for growth and success. SaaS (Software as a Service) tools are essential for startups and small businesses as they provide cost-effective and scalable solutions for various business needs. Startups typically have limited resources and need to be mindful of their spending. SaaS products often have lower up-front costs and subscription-based pricing, which can be more manageable for startups. Additionally, SaaS tools are cloud-based and can be accessed from anywhere, which is helpful for startups that may have employees working remotely or in different locations.

SaaS tools also offer scalability and flexibility, allowing startups to manage their usage as their needs change easily. This is important for startups as they grow and their business needs evolve; SaaS tools can adapt and grow with them.

This blog will cover the top 10 latest SaaS products launched in the market that startups can leverage for their growth.

1.) Hyperswitch

SaaS product hyperswitch

The first on the list is one of the tops on the product hunt list. Hyperswitch is a payment solution platform that lets you connect with multiple payment processors with a single API and access the entire payment ecosystem. It’s an open-source payment switch that improves payment success rates and reduces payment costs, ops & dev efforts. Hyperswitch supports all primary payment methods and connectors, and its unified payments interface supports more than 135 currencies.

Some of the significant features:

  • No-Code Integration with more than 100 Processors
  • Complete control & automation of payments flow
  • Easy-to-write rules to manage Routing
  • It lets you manage 200+ payments methods the CRUD way

Hyperswitch offers a free tier for Startups.

2.) Traw

Traw - First replayable whiteboard

Traw is the first ever replayable whiteboard communication software built especially for remote teams and collaborations. With Traw, you save and replay everything from meetings, including audio recordings, and it lets you enhance your discussion with visuals.

With traw you can:

  • Collaborate with team members in various ways.
  • Use Templates to complete repetitive tasks quickly and easily.
  • Record your work in real-time and team meetings with visuals.


Free version available; Paid starts from $8 per month

3.) YourChamp

SaaS product YourChamp login page design

YourChamp lets you make a digital business card that shows your cumulative social reach. With YourChamp, you connect all your prominent social media accounts to a single dashboard and show your collective social reach. It also helps you build credibility by inviting fans from all social media networks into one profile. YourChamp is a free tool and requires no payment info to use.

4.) Luru

SaaS product LuRu login page design

Luru is a productivity tool that lets you update CRM software more quickly. This is the fastest way to access CRM from anywhere on the web, and it brings the CRM to communication & team collaboration platforms like Slack, Zoom, Google Meet, Email or anywhere on the web.

With Luru, you can:

  • Automate your sales process on Slack
  • Take notes from inside Zoom and Google Meet
  • Create meeting playbooks that guide you through the calls.
  • Update your CRM in seconds
  • Create action items for yourself and your team quickly


The free version is available; Paid version starts at $439 per month.

5.) Bardeen

SaaS product Bardeen home page design

The fifth one on the list is Bardeen. Bardeen is an automation tool that lets you automate repetitive manual tasks without code right from your browser. With the help of Bardeen, you can perform tons of automation across Sales, Marketing, Product development, data research and many more use cases. Bardeen offers hundreds of pre-built playbooks and audiobooks. They also provide tons of integrations and even let you develop your own. Bardeen is currently available as a chrome extension which you can download from the chrome web store. They have also won awards and were featured on the top products in the Product hunt platform.


Free version available; Pro version under development

6.) Racoon

Email marketing tool Racoon

Racoon is one of the latest email marketing tools that emerged in the market. This email marketing tool is built especially for startups and small businesses. Racoon is powered by Acelle and Amazon SES and is connected to SMTP Service. With this SaaS product, you can send unlimited emails with unlimited campaigns and contacts.


The free version is available; Paid version starts from $250 per month.

7.) Yotako

SaaS tool Yotako login page design

Yotako is a design tool that lets you automatically publish your Figma and Abode XD designs as WordPress websites and themes without code. With Yotak, you can design different versions of your websites and update WordPress and themes with the plugin. It’s a free tool and comes as separate plugins for Figma and Adobe XD, and they also provide ready-made templates to get started with.


The free version is available; Paid version starts from $39 per month.

8.) Hubalz

Web analytics tool Hubalz

Hubalz is a web analytics solution that helps businesses reach their marketing goals faster by providing actionable insights that matter to make better decisions. The tool gives you a complete understanding of your customers across devices and platforms and helps improve marketing ROI.

With Hubalz, you can:

  • Track customer behaviour
  • Capture visitor sessions
  • Get a visual representation of your visitor engagement using the heatmap
  • Define key behaviours of visitors
  • Detailed analysis of conversion funnel
  • Make data-driven decisions for your website using instant AI-powered highlights feature


Starts from $12 per month

9.) Fuelfinance

SaaS tool FuelFinance login page design

Fuelfinance is a cloud-based SaaS product for the financial department for startups. It handles all your finance, including accounting, P&L, CF, Financial projections, Unit economics and Plan/fundamental analysis. Fuelfinance handles all your spreadsheets, graphs and automation for you. They provide powerful dashboards and financial services for SaaS, E-commerce, Construction, and Professional Services.


Starts from $1399 per month


SaaS tool GoCharlie home page

Gocharlie is an AI tool that can help you with social media, content creation, image & art generation and more. Charlie is a lifesaver for content marketers as it can save a lot of their time by creating blog content and captions for them. This great AI tool has 50+ use cases. Try it for yourself.

With Gocharlie, you can;

  • Generate original blog content
  • Create engaging social media Ads and captions
  • Repurpose content
  • Turn texts into images and arts


The free version is available; Paid version starts at $39 per month.


Startups can use Product discovery platforms to discover the latest launched software for different industries and tasks.

1.) Product Hunt

Product Hunt is a platform for discovering new products, typically focused on technology and startup companies. This is a popular destination for product-loving enthusiasts to share and geek out about the latest mobile apps, websites, hardware projects, and tech creations. Users can submit and vote on products, and discussions about the effects occur on the site’s forum.

2.) Indie Hackers

Indie Hackers is a website and community for entrepreneurs who build and run their businesses, typically in technology. It is a platform for people to share their stories, strategies, and insights about starting and growing their own companies. Individuals use Indie Hackers to build and launch their products, and you can browse tons of products and even create your project with Indie Hackers.


SaaS products can be a game changer for startups and small businesses looking to streamline their operations and improve their bottom line. The options are endless, from cloud-based project management tools to financial management software. These tools can help startups save time and money while improving their productivity and efficiency. However, it’s always essential to evaluate the specific needs of your startup and choose the right products to help you achieve your goals and reach new heights.


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Kerala Startup Ecosystem

What is a Startup Ecosystem?

Startup ecosystems are networks of resources intended to foster innovations through startups. It is designed to aid the growth of startups in earlier periods of growth. Also, these ecosystems provide startups access to mentorship, office space, and investment options, enabling them to connect with other business sectors.

In a startup ecosystem, multiple types of organizations interact as a system to create new startup companies by interacting with people and startups in their various stages.

About Kerala Startup Ecosystem

Kerala Startup Mission is the government’s significant entrepreneurship development and incubation agency. Clearly between 2016 and 2022, the state’s original incipiency ecosystem witnessed a smash in capital flux. Therefore the main reason for this is the state is home to some of the most promising Indian startups. The startups like CareStack, Open( innovated in Kerala), and Survey Sparrow are among those.

The entrepreneurial ecosystem in Kerala

An entrepreneurial ecosystem consists of interdependent actors and relationships that catalyze new venture creation and growth. The Global Startup Ecosystem Report of 2022 named the Kerala Startup Mission (KSUM) Asia’s best performer for promoting talents. As a result of the government mission, 200 startups were successfully funded in 2022 out of 900 eligible innovators. Communities like Silicon Valley, Boston, Tel Aviv, London, Boulder, and Berlin took decades to become robust entrepreneurial ecosystems. However, it is easy for such ecosystems to grow anywhere today. In the modern economy, every community has the opportunity to become a thriving ecosystem.

Kerala Startup Funding

$551 Mn raised by the local startup ecosystem since 2014.

Fintech & SaaS emerged as crucial sectors for startup investmentsA total venture capital infusion of $551 Mn across 110 funding deals with Fintech and SaaS (enterprise tech) startups remaining at the forefront of raising venture capital. Together, these sectors account for 66%, or $364 Mn, of the total investments worth $551 Mn received by Kerala-based startups since 2015.

State of Kerala startup ecosystem 2022

Key Highlights of Kerala Startup Ecosystem

The main highlights of the Kerala Startup Ecosystem are:

  • More than 30 aspiring entrepreneurs.
  • Above $551 Mn total venture capital inflow since 2014.
  • Above 40K employment created by local startups.
  • Above $101 Mn fund of funds established by the state government.
  • Above 4K startups
  • About $2.8Mn innovation grant provided by State government
  • Number of active incubators in the State-63
  • The number of IEDCs/mini incubators operating in the state is above 375
  • Kerala startup ecosystem Asia and global ranking 

Kerala Startup Ecosystem Asia and Global Ranking 

Kerala’s startup ecosystem has ranked top in Affordable Talent in Global Startup Ecosystem Report (GSER) in Asia in 2022. 

Kerala is also ranked 4th in the GSER global ranking, based on the research driven by Startup Genome, the world’s leading policy advisory and research firm. 

Startup Enabler Ecosystem in Kerala

Kerala is ahead of other startup hubs in the country regarding the scope of investment and growth for Indian hardware startups, which lapped up nearly one percent of the total capital raised by Indian startups between 2014 and H1 2022.

However, hardware product/service-focused startups in Kerala have raised $15.2 million, or approximately 3%, of the total $551 Mn increase since 2014. This is much higher than the leading startup ecosystems in the country, such as Bengaluru (0.03%), Delhi-NCR (0.92%), and Mumbai (1%).

Investor Backings

Kerala’s startup ecosystem offers plenty of funding opportunities for early-stage startups. Also, KSUM introduced a few schemes, including Innovation Grant and Seed Fund Support, which offers working capital without equity dilution which allows startups and entrepreneurs across the early-stage ecosystem to build and launch their products without requiring private capital. 
Kerala’s startup ecosystem houses more than 160 Unique investors. Out of the total active investors in Kerala, angels and accelerators, and incubators who come under early-stage investors account for 48%. Early-stage investments indicate the presence of a robust investment inflow that propels the early-stage entrepreneurial ecosystem.

Key Development Indicators

  • The GSDP (Gross State Domestic Product) is valued at $115 billion. 
  • Highest literacy rate in India at 94%. 
  • 92% Literacy Rate Among Women, which is the highest in India.
  • 1st in the procurement of affordable talents by Global Startup Ecosystem Report 2022
  • 30 Million plus Internet Subscribers In Kerala
  • More than $2k Per Capita Income, which is 56% higher than the National Average. 

What is Kerala Startup Mission ( KSUM)?

KSUM, founded in 2006, is the Kerala government’s nodal agency for the state’s entrepreneurship development and incubation activities for the welfare of Kerala’s startup ecosystem.

How KSUM is providing an opportunity in the Startup Ecosystem

Kerala Startup Mission was founded with the goal to create the infrastructure and ecosystem required to support high-end technology-based startup businesses. Now, the organization has been able to build a vibrant startup ecosystem allowing Tech entrepreneurs to pursue their dreams by providing them complete support in the startup life cycle. 

Under Kerala Startup Mission:

  • 3,900 startups were registered
  • 6 lakh plus square feet of incubation space were provided
  • 67 incubators & 370 mini incubators provided
  • Future technologies lab, IOT labs, MIT Super Fab lab to promote digital fabrication, and 22 fablabs including mini fablabs were distributed across different districts.

KSUM has worked hard over the years to strengthen the start-up environment in the state. In the last 5 years, KSM has awarded innovation grants to 550 ideas out of 2000 shortlisted startups. 

KSUM disbursed grants worth Rs 6.9 crore to 170 startups in 2021-22. 

Rise of Kerala Startup Ecosystem

Over 4k startups were launched in Kerala between 2016 and 2021. 95% of the startups in Kerala were launched in 2016 or afterward.

As one of the most literate states they also have well-interlinked schools & colleges, incubators, government institutions, and startups to build a well-orchestrated startup ecosystem. 

Kerala has set an ambitious goal of creating 15k startups over the next five years with the help of various government initiatives. The state is also looking to set up a dedicated venture capital fund for startups. Kerala has also opened a launch pad program for startups from across the world to come to the state and explore the market. 
Kerala Startup Mission (KSUM) launched Seeding Kerala, an investor summit, showcasing opportunities to invest in startups from Kerala. At the latest Seeding Kerala Summit, investments of $10.6 million were announced. 46 investors participated in the invite-only summit.

Top Growing Sectors

Fintech and SaaS ( Enterprise tech) emerged as the top startup sectors in Kerala, with 66% of the investments being made into the two sectors. 

40% of the funded startups in Kerala came from the SaaS sector

Subsector strengths

Advanced Manufacturing & Robotics

Advanced manufacturing and robotics

Thanks to its support facilities including a network of 22 fablabs, 20 IoT labs, and MSME Cluster spread across the state, Kerala has become one of the ideal base for advanced manufacturing and robotic companies. The Electronics manufacturing and industrial clusters of the state help startups scale their manufacturing activities. 

Artificial Intelligence, Big Data & Analytics

Artificial intelligence logo
  • Kerala became the first Indian state to introduce coding into the curriculum from Class I onwards. 
  • Digital University Kerala launched a training program called Capacity Building in Responsible Artificial Intelligence and Data Analytics for the Police Department in 2022.
  • Agrima Infotech,an enterprise business unit of Deep Tech company incubated by Kerala Startup Mission was acquired by online grocery Bigbasket.


Blockchain logo

Kerala University of Digital Sciences, Innovation and Technology, under the Government of Kerala, started an initiative, Kerala Blockchain Academy to provide Blockchain training, research, and consultancy. 

An offshore delivery center is being set up in Kochi by UAE based Blockchain startup Kingspin Technology Services as a part of its expansion. 

Top Startups


Entry is a learning app for jobs in India. In 2017, Mohammed Hisamuddin and Rahul Ramesh founded it. Mainly for job seekers, this delivers learning resources in any local language. This also gives mock/adaptive tests, flashcards, video courses, etc.

They raised about $1.4M from Good Capital, Boston-based edtech accelerators like LearnLaunch and a group of investors. The pandemic impact and the lockout increased their user base to 3M, with 90k paid subscribers.

The success of Entri comes from the realization that online learning concepts become highly effective when done in one’s native language. Entry is undoubtedly one of the most promising and top startups in Kerala.

NavAlt Solar

The energy needed for the transportation of water is quite large. Solar ferries are the main practical answer to this problem but they are costly. To fill the gap between cost and efficiency, NavAlt Solar & Electric Boats built India’s first affordable solar ferrie. It is the world’s most cost-effective one.

Sandith Thandasherry, a naval architect with deep knowledge and experience, is behind this boat manufacturing and solar energy startup industry, NavAlt. At first, they needed something to work for them as per the plans. Constant cash flow, government regulations, and technology problems they faced provided them with learning opportunities.

As a result, the Kerala government has finally introduced solar boats to its waters, and the Maharashtra government has followed suit. Recently the company has emerged as one of the top startups in Kerala.


Four young engineers, Vimal Govind MK, Arun George, Nikhil NP, and Rashid Bin Abdulla Khan, took their love for science and Iron Man has to lead to a new stage with Genrobotics and Bandicoot. It is about a Manhole monitoring system. They have decided to end the deaths of sewers and clean up utility holes with Bandicoot, a spider-shaped robot created by their startup company Genrobotics.

Bandicoot uses machine language and artificial intelligence to calculate the unclogging required. Thus in 45 minutes, it can finish work that would take 3-4 hours to complete if done manually. 

It raised about Rupees 2.5 crore in a pre-Series investment headed by Unicorn Ventures (India). It is now one of the top startups in Kerala.


Shihab Muhammed introduced the idea for SurveySparrow, a client experience platform, because he set it up himself, putting off checks. After all, the unimaginative questionnaires failed to engage him. This led to SurveySparrow, a better forum for statements that’s further engaging, with advanced check completion rates of 40.

The platform has an erected- robotization system that allows associations to produce and partake in mobile-first checks through SMS or WhatsApp. Generators can manage client experience checks, hand palpitation checks, and request feedback checks with a Conversational stoner Interface.

SurveySparrow has raised$1.4 million in seed backing from Prime Venture mates and is indeed one of the top startups in Kerala.

Inntot Technologies

Music, prints, and pictures can now stream via a home network. Presently, colorful companies in this sector serve millions of people worldwide.

The retail price of digital media receivers increases as new capabilities are added. The company also provides services in consumer electronics and IoT.

The total Funding Amount is Rs 150 Cr in the first funding & plans to raise Rs 400 Cr in the second round.


CareStack is a pall-grounded dental practice operation, patient commerce, and data analytics software. It allows guests to manage all primary operations of their practice through one straightforward platform, with completely integrated modules for scheduling, clinical, billing, patient engagement, and business administration.u6

CareStack is a Florida and Thiruvananthapuram- grounded dental care incipiency. CareStack raised$ 28 million in 2019, and with this fundraiser, it has raised an aggregate of$ 60 million. As, the total funded quantum so far is$74.1 Million. The good news is that Carestack has given exit to 12 of its early-stage investors. This demonstrates the progressive growth of the incipInntot comes next in the list of top Kerala startups. It is mainly about cost-effective next-generation digital media receivers by Prashanth Thankappan & Rajith Nair.


With its bitsy, ever-controlled drone, Kochi- grounded incipiency EyeROV makes it to the top startups in Kerala list for offering data-driven reporting and ease of use in marine examinations.

E-commerce or entertainment has nothing to do with marine robotics, which you hear about only sometimes. Besides tackle, EyeROV creates a data analytics and visualization platform. This is to partake every minute of information from aquatic checks by its guest’s possessors of underwater. Through its intuitive platform and AI and machine literacy, EyeROV can make faster and more influential decisions. The total funding Amount of EyeROV is about $70K.


Payback comes next in the list of Top 10 startups in Kerala. It’s a Fintech establishment that assists businesses in taking better care of their workers by refunding charges simply and accessible online. Workers can make payments using a mobile port and a card handed by the company. Also, all costs are proved and so workers can save plutocrats on levies.

Authors Nicky Jacob, Ricky Jacob, Vivek Vinod

Sastra Robotics

Sastra Robotics is a Robotics company in the top ten list of startups in Kerala by Aronin P, Akhil A, and Achu Wilson.

Dedicated to developing innovative robotic technologies and results, it’s an early-stage robotics organization. The company is in favor of people and robots coinciding. They also seek and admit backing from colorful exploraebtion institutions to further advance their progress. The company was innovated in 2012 . And became one of the top ten startups in the Startup Village incubation center in 2012.


Making healthcare more straightforward and accessible is what Mykare’s then for Senu Sam and his two mates, Rahmatulla and Joash, revolutionized healthcare assiduity and innovated Mykare in the early epidemic period of 2020. Mykare provides easy and accessible results for surgical care for cases by allowing them to admit an end-end frame, starting from planning the surgery and consulting the right croakers to ordering drugs and booking lab tests or reviews for checks. With a fast-growing network of 10 metropolises so soon, Mykare Health is turning out to be one of the top startups in Kerala with a vision.


Zappyhire is a reclamation platform that relies fully on artificial intelligence. This reclamation mate allows you to speed up your processes through reclamation robotization and data intelligence. Innovated by Deepu Xavier and Jyothis KS in 2018, Zappyhire has relatively fleetly taken over gift accession problems! With features ranging from an aspirant tracking system, a capsule parser, AI assessments and a recruiting chatbot, Zappyhire takes retaining to the coming position. They entered a total backing quantum of$494.3 K in their last seed backing round in 2021. With a beginner customer base of further than 4000, Zappyhire is another well-known incipiency in Kerala!

Promoting Women entrepreneurs

Focus on Women in Startup Ecosystem

Only 11% of startups in Kerala have a female founder. KSUM will run activities in emerging technology at the school & college levels to create a pool of girls with skill sets that can leverage by existing and upcoming startups. They will also provide awareness in entrepreneurship at a lower level.

Also, specialized incubators & sector-based accelerators will be built with inclusive women’s space to support women founders/ entrepreneurs. 

More participation of women as speakers will ensure in the events of the ecosystem. This will even out the diversity and create role models to motivate. 

Schemes For Women Entrepreneurs

  • Soft Loan Scheme (Up to INR 15 Lakh)
  • Seed Fund (Up to INR 15 Lakh)
  • Technology commercialization support (Up to INR 10 Lakh)
  • Soft Loan Against Purchase Order (Up to INR 15 Lakh)

Upcoming Programmes By Kerala

Innovators Premiers League

KSUM has set up an initiative, Innovators Premier League 2.0 with the mission to bring out the

best talents from the Kerala Innovation Hubs. Innovators Premier League 2.0 aims to bring awareness and sensitization of IEDC & its activities among students, build a competitive & entrepreneurial mindset among innovators, and create a pipeline of startups. 

Rink Technology Conclave

The technology conclave aims to bring together Research innovations in the rink platform under a common roof to exhibit their products. It creates a platform for researchers to network with startups, technocrats, mentors, corporates, industries, government officials and investors.

Moreover, this will give an opportunity for them to understand more about cutting-edge research products developed in the country’s premier research institutions. 

Huddle Global

Huddle Global is one of the most coveted events in Tech Startup Ecosystem in India and offers a platform for start-ups to showcase their products and interact with Tech and industry leaders, on ways to move ahead in the ever-growing tech world.

Organized by the Kerala Startup Mission (KSUM), the event features keynote sessions, leadership talks, tech talks, start-up demo, and other business-oriented activities. 

Seeding Kerala

Seeding Kerala is a unique annual event that brings together the HNI network of Kerala and investors around India to showcase opportunities to invest in the best startups from the state and other parts of India. The event has been organized by Kerala Startup Mission (KSUM) since 2016.

Seeding Kerala is designed with the intent of:

  • Seeding investors in the Kerala startup ecosystem
  • Seeding a startup investment culture among the HNIs in the state.
  • To educate and empower potential investors and HNIs from the state to create an Angel Investor Community in the State.