Karnataka to have 50 Fintech unicorns by 2030

Karnataka Digital Economy Mission (KDEM) CEO Sanjeev Gupta said that Mangaluru will be the Fintech hub and Karnataka will produce 50 Fintech unicorns by 2030.

Speaking during the second edition of ‘Technovanza’ said that Karnataka will have a $500 billion Fintech market by 2030, 50 per cent of India’s contribution in the sector.

“We’ve identified Mangaluru with crucial innovation led by a flourishing talent base and increasing manufacturing and IT activity. Unsurprisingly, the city and its surrounding areas have all the markers of excellence required to sustain a long-term start-up culture. Along with clusters in Mysuru and Hubballi-Dharwad-Belagavi, Mangaluru will lead the way in the state’s next phase of digital transformation and tech dominance.”

Read | KDEM expects state's digital economy to hit $300 billion by 2025

Rohith Bhat, CEO of 99Games said that the Mangaluru cluster is looking for an additional workspace. The cluster is looking for large companies, satellite offices and homegrown startups. The target is to have 3.2 billion dollar IT export from the cluster in the next 10 years.

He said the CEO conclave with the minister on Saturday evening felt the need for organising a roadshow in the Gulf region to showcase the Mangaluru cluster. The connectivity between Mangaluru and Bengaluru should be improved by decreasing travel time.

The need for setting up an R and D fund to encourage new product development and setting up an Impact fund of Rs 1000 crore for the Mangaluru cluster was also felt during the meeting.

Karnataka's Startup Vision Group chairman Prashanth Prakash said for any city, social infrastructure beyond physical infrastructure is important. “Unless we make the city a cool place where youth feel the right vibe, we will not be able to make it a silicon beach. Softer aspects of what youth want needs to be addressed. Make the place welcoming, where young people want to thrive. Goa has other cultural and softer aspects which should be made available in Mangaluru,” he felt.

Manipal Global Education Services chairman T V Mohandas Pai said that the digital revolution is sweeping the world. In Karnataka, the GDP has a share of 66.5 per cent in services, much more than the neighbouring states. In Karnataka, 25 per cent of the GDP comes from software. Mangaluru should become a hub of human capital and not a place for retired people. There is a need to fund start-ups and innovation, he said.

Dr E V Ramana Reddy, Additional Chief Secretary, Department of Electronics, IT BT S&T, Higher Education, Skill Development and Entrepreneurship said: “Emerging clusters outside Bengaluru, like Mangaluru, are exerting more significant influence; we expect a rise in their economic contributions to be around 17 per cent by 2030. Primarily driving Mangaluru’s share are the 150 IT companies aggregating an annual export revenue of over Rs 3000 crore. The Mangalore Software Technology Parks of India (STPI), alongside the region’s high literacy, entrepreneurship, and low attrition, have been essential to attracting IT/ITES companies.”

Chairman of Karnataka Digital Economy Mission B V Naidu said “KDEM is focused on developing Mangaluru as an attractive trade destination. We have already established over 50 start-ups through the ‘Beyond Bengaluru Start Up Grid’ initiative, extending legal, financial, marketing-branding, funding, and mentoring assistance to enable their growth. We are also working towards launching the Centre of Excellence in Fintech, which will be a milestone achievement in the region.”