The event is aimed at searching for entrepreneurs with innovative ideas in cloud computing, mobile applications and Windows 8 business applications.
This is the first time that Kochi has been selected as one of 10 cities to host the challenge, said an organiser.
Winners of the regional rounds will go head-to-head in the national grand finale to be held in Bangalore.
The competition offers cash awards totalling $70,000 and non-cash prizes worth $2 million.
"Microsoft's choice of Startup Village as the host for the challenge is not just an acknowledgement of the strides we have made over the past one year, it also heralds the arrival of Kochi on India's entrepreneurial map," said Sijo Kuruvilla George, CEO of Startup Village.
The Microsoft BizSpark India Startup Challenge 2013 is open to people who are 18 years or older, citizens or legal residents in India, and are a part of BizSpark Community.