KUALA LUMPUR: Cradle Fund Sdn Bhd and Invest India, an investment promotion and facilitation agency under the Indian government, have exchanged a letter of cooperation (LOC) to establish the India-Malaysia Startup Alliance (IMSA) through Startup India.
The partnership aims to foster greater engagement and collaboration among technology-based startups in both nations.
Startup India, a flagship initiative of Invest India, intends to catalyse startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
The initiative, established under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India, plays a crucial role in facilitating foreign investment into its country and promoting its economic growth.
Commenting on the LOC between the two agencies, Science, Technology and Innovation Minister Chang Lih Kang said Malaysia and India have benefitted from the long-standing relationship built on mutual respect and shared prosperity.
He added that this alliance between Cradle and Invest India is a natural extension of our strong economic and commercial ties.
"As Malaysia ranks among India's top trading partners, this partnership will encourage local startups to venture into India's 1.4 billion strong market and will also provide pathways for quality Indian startups to penetrate the Asean market through Malaysia.
"This is aligned with the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030, and its aspiration to place Malaysia among the top 20 global startup ecosystems by 2030," he said in a statement today.
Meanwhile, Cradle group chief executive officer Norman Matthieu Vanhaecke said this alliance which is a first for both countries, not only strengthens mutual commitment but also fosters a closer, more impactful, and sustainable cross-border tech entrepreneurial synergy.
He also noted that this drives transformative growth in India and Malaysia's startup ecosystem.
The LOC exchange ceremony was held in New Delhi on Aug 21, 2024, in conjunction with Malaysia's official visit to India, led by Prime Minister Datuk Seri Anwar Ibrahim.
The alliance is expected to be the primary bilateral framework for startup and innovation engagement between the two countries.
Over the next year, IMSA will focus on enhancing mutual awareness of the development of startup ecosystems in Malaysia and India, emphasising government interventions, industry collaboration, and university engagement.
Key initiatives under IMSA will include virtual capacity-building sessions, knowledge-sharing events, and the facilitation of startup matchmaking programmes.
These efforts will culminate in the participation of Malaysian and Indian delegations, as well as other startup ecosystem players, at major events such as the Startup Mahakumbh 2025 and the Asean-India Startup Festival 2025, to be held in Kuala Lumpur as part of the country's Asean chairmanship.
The matchmaking programmes are targeted to catalyse investment and commercial contract value close to RM100 million from potential venture capitalists and corporates between Asean and India.
Additionally, these programmes will connect startups with relevant stakeholders to explore opportunities for market expansion, research and development, and deeper industry collaboration.