The Karnataka Digital Economy Mission (KDEM) is a not-for-profit Section 8 organisation set up in December 2020. It functions under the Department of Electronics, Information Technology, Biotechnology and Science & Technology (EITBT), Government of Karnataka, and acts as the knowledge and execution bridge linking the state government with the technology industry. Its work is directed at speeding up growth in Karnataka's IT, ESDM and startup sectors.
From its base in Bengaluru, KDEM collaborates with industry partners such as NASSCOM, ASSOCHAM and IESA. Its mandate spans five verticals: IT Products & Services; BPM and GCC Promotion; Innovation & Startups; Electronics Systems Design and Manufacturing (ESDM); Beyond Bengaluru; and Talent Accelerator. The organisation's stated goals include creating 40 unicorns and 50 soonicorns in Karnataka and positioning the state as a global digital economy leader.
Within its Innovation & Startups vertical, KDEM carries out startup policy and backs a statewide network of Centres of Excellence (CoEs), Technology Business Incubators (TBIs) and New Age Incubation Networks (NAINs). Its programmes include the Karnataka Acceleration Network, which nurtures around 306 startups over three years through a mentor-mentee model connecting accelerators and incubators across the state; BLUE (Beyond Bengaluru), which links high-potential startups in the Hubballi-Dharwad-Belagavi, Mangaluru and Mysuru clusters with VCs, angel investors and industry leaders so that founders outside Bengaluru have the same access to capital and mentorship; LEAP (Local Economy Accelerator Programme), which sets up incubation centres in Tier-2 and Tier-3 cities along with local institutions; and Industry & Enterprise Connect, which runs programmes for pilots, partnerships and enterprise connects between startups and large corporations.
KDEM is chiefly relevant to Karnataka-based startups — especially in IT/SaaS, ESDM, deep tech, biotech, fintech and sustainability — seeking state government support, incubation infrastructure, or links to enterprises and Global Capability Centres (GCCs). Founders located outside Bengaluru who wish to use the BLUE and LEAP programmes will find its beyond-Bengaluru focus especially useful.