Kerala startups navigate a new course

As the year 2025 draws to a close, a review of the stories covered over the past twelve months offers a revealing snapshot of Kerala’s evolving technology ecosystem. It was not a year defined by dramatic breakthroughs or headline-grabbing announcements. But there are early signs of an ecosystem beginning to look beyond familiar comfort zones, and towards building capabilities with a longer, global horizon.

What stood out when we leafed through the newsletters of 2025 was not merely the range of sectors in play, but the growing confidence with which Kerala-based companies and institutions approached their ambitions. It was not a year of loud declarations, but one marked by quiet repositioning.

The influence of artificial intelligence was clearly visible across the local tech landscape. A growing number of startups now market AI-enabled products, particularly in areas such as marketing automation, education, recruitment platforms and code-writing tools. It is a crowded and competitive space, and only a handful have managed to gain meaningful traction so far.

Alongside this, there is an emerging group of startups in Kerala attempting to build products with demand beyond the traditional software domain that defined Indian technology companies over the past two to three decades. Space technology and deep tech, in particular, showed early signs of momentum.

At the forefront: Trivandrum-based Netrasemi emerged as one of the clearest indicators of this ambition. Its positioning in the AI chip space comes at a time when nations across the world are attempting to build domestic semiconductor capabilities. More than an individual company’s trajectory, it reflected a broader willingness within Kerala’s ecosystem to engage with complex and strategically significant technologies.

In the space sector, Hex20 underlined the growing role of private players. With the launch of the Nila satellite, the company became the first Indian private firm to independently provide satellite capacity for an international client, marking an important milestone in India’s commercial space journey.

That momentum was reinforced by Ananth Technologies’ decision to establish the Ananth Centre of Excellence for Navigation (ACEN) in Trivandrum. Founded in 1992 and involved in every Indian space programme to date, Ananth’s move adds depth to a city already anchored by Indian Space Research Organisation (Isro) and the Vikram Sarabhai Space Centre. Together, these developments point to the space-tech potential Kerala has been building steadily over decades.

The state’s lineage in this sector can be traced back to the launch of the first sounding rocket from Thumba in 1963. After several staggered starts, the dedicated park for aerospace, KSPACE, finally got off the ground in June. While construction timelines and regulatory clearances have moved slowly, KSPACE’s ability to bring together a consortium of three major aerospace companies earlier in the year reflects growing institutional confidence around the ecosystem.

Going global: Beyond space and deep tech, some of the year’s more compelling stories came from Kerala-based companies and individuals finding relevance in global markets.

QBurst’s evolution from a Kerala-rooted SaaS firm into a global services company, culminating in its acquisition, validated years of deliberate outward-facing growth. It demonstrated that scale and international relevance can be achieved without abandoning local roots.

Launched in 2024, the Bharat Genome Database (BGD) aims to build a comprehensive platform for plant genomes in India, underscoring the belief that globally relevant platforms can be built from here. A similar confidence is visible in fashion, where My Designationis looking to build a global brand from Kerala, challenging the assumption that design-led companies must emerge from established industry hubs.

There was also the unexpected story of Sabal Krishna and Temple Siege. With support from TiltLabs, the gaming creator saw his work featured on Fortnite’s map in Japan, underscoring how creative industries and digital entertainment are no longer fringe experiments, but viable global opportunities for young professionals from the state.

Taken together, these stories suggest an ecosystem that is maturing cautiously, but with increasing confidence in its ability to compete internationally.

Decentralising tech: One of Kerala’s more distinctive opportunities lies in its geography and settlement patterns. Unlike crowded mega-cities, the state has the potential to function as a distributed metro, with technology hubs spread across regions rather than concentrated in a single urban core.

Zoho Corporation’s decision to establish a centre in Kottarakkara is a telling signal. Known for its measured expansion strategy and preference for tier-two and tier-three locations, Zoho’s move reflects confidence in Kerala’s talent pool and quality of life.

IBM’s research centre in Kochi reinforces this trend, pointing to multinational companies increasingly looking beyond traditional metros to locations where talent availability, connectivity and liveability intersect. If executed thoughtfully, this decentralised approach could emerge as one of Kerala’s defining structural advantages.

A human touch: Technology’s impact during the year was not limited to startups or infrastructure. Initiatives such as KITE’s AI course showed how artificial intelligence education can be made accessible to teachers, students and professionals without demanding deep technical expertise.

The Bhashini initiative, focused on language technology, extended this idea by aiming to make public services accessible across linguistic barriers. These efforts reflect an understanding that technology’s value lies not just in sophistication, but in usability and inclusion.

One of the more ambitious public-interest technology projects involved using digital platforms to bring together thousands of volunteers and health workers to deliver palliative care to patients confined to their homes. The scale and coordination involved have drawn attention from other states exploring similar models.

The Kerala government also made progress on the digitisation of land records, with plans to add spatial data to enhance their utility. If effectively integrated, the long-term implications of this project could be significant.

Knowledge economy: Shifts in global geopolitics are forcing India to reassess its approach to research, advanced manufacturing and intellectual property. Against this backdrop, Kerala holds a relative advantage, with a concentration of well-established research and higher-education institutions.

Six institutions in the state, including the College of Engineering, Trivandrum, NIT Calicut, Cochin University of Science and Technology, and Rajagiri School of Engineering and Technology, were selected for the central government’s Chips to Startup programme.

Cochin University of Science and Technology and the Indian Institute of Space Science and Technology have also been identified under the National Quantum Mission to help build a domestic quantum computing ecosystem.

Meanwhile, the Trivandrum Research Cluster, which brings together seven premier central government institutions, stands as a concrete example of the opportunities available if coordination and follow-through are sustained. Ultimately, these initiatives will be judged not by announcements, but by the ecosystems they succeed in creating.

During the course of the year, TikTalk Newsletteralso paused to remember pioneers who helped shape Kerala’s knowledge culture through decades of quiet dedication. Figures such as Dr M S Valiathan, Professor P PDivakaran and Anna Mani serve as reminders that today’s research ambitions rest on foundations laid long before “innovation” became a policy buzzword.

Looking ahead: The coming years are likely to be shaped by forces that extend beyond individual startups or institutions. The operationalisation of Vizhinjam deep-sea port stands out among them. With ships from over a hundred global ports already calling to transfer cargo, India’s first trans-shipment hub has the potential to redefine Kerala’s role in global trade and logistics, and to influence the kinds of technology, manufacturing and services that take root around it.

But Kerala’s future direction will not be shaped by innovation alone. Few moments captured this tension as clearly as the scene outside the Leela Raviz Hotel in Kovalam, where KSUM’s flagship startup summit, Huddle Global 2025, was held. A group of auto drivers ensured that three-wheelers booked through ride-hailing apps – a technology-driven solution for urban mobility – were not allowed in the area. 

The episode served as a reminder that while technology can offer answers, its adoption in Kerala must contend with entrenched interest groups, informal power structures and resistance to change. Innovation is very much a social and institutional challenge, whether in government, universities or offices.

As the state moves into the next year, the question is no longer whether Kerala possesses talent or ambition. The more difficult test lies in execution – in converting institutional strength into scalable products, pilots into platforms, and intent into sustained momentum. The past year suggests the foundations are being laid. How effectively they are built upon will shape the narrative ahead.

AI market hype goes ballistic

Nothing symbolises the market hype about AI better than the bizarre tale of RRP Semiconductor, whose shares spiked 55,000 percent – a world record. Shares which were worth 20 rupees in April rose to 11,094 rupees in December. The company is yet to do anything about chip production, had a net loss of 7.16 crore rupees for the September 2025 quarter, and employs only two people. But the chase for AI-related stocks, and social media posts that linked cricketer Sachin Tendulkar to the firm, fuelled its astronomical rise. Now regulatory authorities have stepped in, but the company has denied any hand in this fiasco.

Such speculation is rearing its head in China as well. The latest in this saga is the 700 percent jump of MetaX Integrated Circuits, which listed in Shanghai recently. Beijing’s push to boost domestic production and reduce reliance on chips from US firm Nvidia has added to the hype. Founded by former AMD executives, MetaX raised roughly 600 million US dollars in an initial public offering. Earlier this month, another chip manufacturer, Moore Threads, made its market debut with a 400 percent spike. Looks like hype doesn’t stop at country borders.

Somnath flags innovation gap

Space tech is one sector where India is seeing a lot of activity. But former Indian Space Research Organisation (Isro) Chairman S Somanath made an astute observation recently. Despite the private sector launching itself into the domain enthusiastically, Somanath says innovation is still scarce and the adoption of methods such as digital twin technology and artificial intelligence remains limited. “I think it is a point of concern to me because I have been going around the country and looking at start-ups and companies who have been designing aerospace structures. Concerning hardware, especially in the domain of aerospace structures, I am not seeing that type of competence or that type of capability to innovate or do things differently than in the past,” he said.

China is chipping away, says report

Lack of access to high-end chips is a handicap for China in the race to gain AI superiority. Now a Reuters report says Chinese scientists have built a prototype of a machine capable of producing the cutting-edge semiconductor chips that power artificial intelligence. “Completed in early 2025 and now undergoing testing, the prototype fills nearly an entire factory floor. It was built by a team of former engineers from Dutch semiconductor giant ASML, who reverse-engineered the company’s extreme ultraviolet lithography machines,” the report said.

My name is Botman, Sam Botman

Adam Bhala Lough, a Punjabi-American director known for award-winning films on platforms such as HBO and Netflix, had a simple plan: interview OpenAI CEO Sam Altman for a documentary on the impact of AI. The idea was to probe how AI is reshaping our lives, with a look at companionship and reality. Altman, however, declined. So Lough did what any filmmaker in the age of AI might do – he built a bot of Altman for the interview. Lough says he even had to fly to India to make this happen, after firms in California refused to play along. The documentary, slated for release in January, should give Altman a taste of his own medicine.