GrantDept. of Electronics, IT, BT and S&T, Govt. of Karnataka

Karnataka Startup Policy 2022 — Market Development Assistance

Reimbursement of up to ₹5 Lakhs for market development expenditure by DPIIT-recognised Karnataka startups under the Karnataka Startup Policy 2022–27. Eligible: trade fair and exhibition participation fees, pilot PoC deployment costs with corporate/government customers, marketing collateral production, and costs for entering new geographic markets outside Karnataka. A separate claim from the patent/certification incentive under the same policy — both can be claimed in the same financial year subject to individual caps. Annual claim window; claimable for up to 3 financial years.

Maximum amount
₹5.0L
Typical payout
₹2.0L
Processing time
6–12 weeks
Application window
Rolling annual claim — up to 3 financial years from DPIIT recognition date.

Check if your startup qualifies for Karnataka Startup Policy 2022 — Market Development Assistance

Answer a few questions about your company and get a free, personalised eligibility report across all active government schemes — including KA Startup MDA.

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Eligibility criteria

Company type
Private Limited, LLP, One Person Company
Stage
Pre-Revenue, Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr)
States
Karnataka
Sectors
ai, saas, fintech, healthtech, agritech, edtech, cleantech, iot, deep_tech, biotech, manufacturing, other
Prerequisites
  • DPIIT Startup India recognition required

Documents required

1
DPIIT Recognition Certificate
Valid DPIIT Certificate of Recognition from Startup India portal. Karnataka Startup Cell verifies recognition was active at the time each claimed expense was incurred.
Tip: Download from startupindia.gov.in. Ensure Karnataka is selected as the primary state during DPIIT recognition — this is how the Startup Cell identifies Karnataka-eligible claims.
2
Entity Incorporation Certificate
MCA Certificate of Incorporation confirming the entity is a Pvt Ltd, LLP, or OPC registered with Karnataka as the primary state.
Tip: Registered or operational address should be in Karnataka. If registered elsewhere, provide evidence of Karnataka operations.
3
CA Certificate — Market Development Expenditure
CA certificate summarising all eligible market development expenses in the claim year (trade fair fees, collateral production, pilot deployment costs), categorised by type, with original invoices attached, certified with UDIN.
Tip: Categorise expenses clearly in the certificate — the Startup Cell may disallow expenses that are not clearly market-development in nature (e.g., general HR or internal IT costs). Pre-check eligibility of large line items before incurring.
4
Trade Fair or Event Participation Evidence
Participation certificates, stall booking confirmations, or exhibitor/delegate badges from trade fairs and exhibitions attended. No canonical key exists for event attendance evidence — submit as supporting attachments alongside the CA certificate. Required for the trade fair component of the MDA claim.
Tip: Download participation certificates from event organisers immediately after the event — many organisers stop issuing these 30 days after the event. For virtual events, a screenshot of your exhibitor/speaker confirmation suffices.
5
Bank Account Details (Cancelled Cheque)
Cancelled cheque for entity current account for MDA reimbursement.
Tip: Same account should be used across all Karnataka Startup Policy claims — changing accounts mid-programme requires a fresh bank verification.

How to apply for KA Startup MDA

1
Track and retain all invoices for eligible market development activities throughout the year — trade fair fees, collateral production, pilot deployment costs.
2
At year-end, prepare the CA certificate with all eligible expenses, attach original invoices, and obtain UDIN.
3
File the MDA claim on the Startup Karnataka portal with CA certificate, DPIIT certificate, incorporation certificate, and event participation evidence.Open portal
4
The Startup Cell reviews the claim within 4–8 weeks — may request clarification on specific line items.
5
Approved reimbursement credited to entity account. Claims can be filed for 3 consecutive financial years from DPIIT recognition — maximise use of all 3 windows.

Frequently asked questions

Who is eligible for KA Startup MDA?

KA Startup MDA is available to Private Limited, LLP, One Person Company companies at the Pre-Revenue, Early Stage (Revenue < ₹1Cr), Growth Stage (₹1Cr–₹25Cr) stage, across Karnataka. DPIIT Startup India recognition is mandatory.

How much funding does KA Startup MDA provide?

KA Startup MDA provides up to ₹5.0L. Most applicants receive around ₹2.0L.

How long does KA Startup MDA approval take?

The typical processing time from submission to disbursement is 6–12 weeks.

Is KA Startup MDA currently accepting applications?

Yes, KA Startup MDA is currently active and accepting applications. Application window: Rolling annual claim — up to 3 financial years from DPIIT recognition date..

Do I need DPIIT recognition to apply for KA Startup MDA?

Yes, DPIIT Startup India recognition is mandatory. Register at startupindia.gov.in before applying for KA Startup MDA.

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Information is based on publicly available scheme guidelines. Always verify with official sources before applying.