At the TN Rising Investment Conclave in Hosur recently, a young founder from Torus Robotics walked up to the stage, papers in hand, ready to exchange an investment memorandum of understanding with the Government of Tamil Nadu. What set this apart from most of the other corporate majors exchanging MoUs that day was their journey so far — starting with government-backed incubation and refining a difficult problem with patient mentorship and modest seed support. That morning, they were no longer petitioners for opportunity. They became partners of the government in a significant sector with ₹100-crore investment.
Welcoming startups such as Torus Robotics and many more as investors in the State is a symbol of what we set out to build: a system where a startup nurtured by the government can mature into a collaborator of the State. This is a deliberate outcome of a strategy that marries innovation with inclusion and policy with purpose.
Exponential growth in startups
For decades, Tamil Nadu’s industrial identity has been anchored in manufacturing excellence. Over the last four years, we have extended that strength into deep-tech and innovation, quietly, steadily and inclusively.
When our government assumed office, the State had 2,032 Department for Promotion of Industry and Internal Trade (DPIIT)-registered startups. Today, the number has crossed 12,100, which is roughly a six-fold rise in just four years. It is a matter of pride that 50% of them are women-led. Tamil Nadu has been recognised as ‘Best Performer’ in the States’ Startup Ranking 2022 by the Union Government’s DPIIT, which is a move up from ‘Emerging State’ category in 2018. Chennai was ranked 18th in Asia in the Global Startup Ecosystem Report 2024, and among Asia’s top 10 for Affordable Talent. Tamil Nadu also leads the nation in the number of incubators and has been named a model State for the innovation ecosystem by the Atal Innovation Mission.
This is an outcome of a three-pillar strategy that the State has followed to facilitate startups and spark innovation. The first pillar is using State capital as a strategic catalyst. Through the Tamil Nadu Startup Seed Grant Fund (TANSEED), seed grants of ₹10 lakh are provided to startups, and ₹15 lakh to women-led, green-tech and rural-livelihood ventures. So far, 169 startups such as Ippopay, Gallabox and Dream Aerospace have received ₹18.79 crore, which have gone on to attract more than ₹537 crore in investments — a 28X multiplier on the State’s seed rupee.
We are extending this capital logic to frontier sectors. For instance, the Tamil Nadu Space Tech Fund of ₹10 crore offers milestone-based assistance up to ₹50 lakh on a 1:1 match with external investors, backing both core and downstream space applications, from satellites to Artificial Intelligence (AI)-driven geospatial solutions.
Focus on inclusion, gender parity
Our second pillar is employing principles of inclusion, and not as charity but strategy. The Scheduled Castes and Scheduled Tribes (SC/ST) Startup Fund, launched in 2022-23 with an initial ₹30 crore and enhanced to ₹50 crore in 2023-24, delivers equity investments to level the playing field. Forty-three startups such as OrbitAid, Unibose and TAMS Tribal Green Fuel have received ₹60.80 crore so far. We followed it up with the Periyar Social Justice Venture Lab — an acceleration programme designed to support social enterprises and empower entrepreneurs from SCs and STs. More than 30 such startups are already engaged, and the model is already yielding appreciable results with eight companies having successfully raised the next round of funding totalling ₹16.9 crore.
We have focused on gender parity through Thozhili bootcamps that have equipped over 200 women in Coimbatore, Kanniyakumari, Erode and Chennai — 15 women entrepreneurs received ₹14.70 lakh for incubation expenses. For physically challenged founders and transgender founders, Special Seed Grant Funds of up to ₹5 lakh with structured mentorship and incubation access have been established. For rural innovators, the Gramam Thorum Puthozhil scheme (Establishing Start-ups in Villages) has been implemented. The aim is to have 100 startups in 100 villages, using equity-free TANSEED grants of ₹1 lakh and incubation via regional hubs.
Our third pillar was building a decentralised and connected ecosystem. Ten regional hubs — Chennai, Madurai, Tirunelveli, Erode, Salem, Cuddalore, Hosur, Thanjavur, Coimbatore and Tiruchi — bring infrastructure, mentors and markets closer to entrepreneurs. A Metro Hub functions in Chennai, and Thoothukudi has been announced as the next addition. We are also creating the pipeline earlier with 100 Pre-Incubation Centres being rolled out in Tier-II/III/IV institutions. The first 25 have been sanctioned at ₹7.5 lakh each (total cost of ₹1.87 crore).
Digital rails tie these hubs together. MentorTN has onboarded 320 mentors and 1,171 startups and facilitated 1,120 hours of mentoring. TANFUND connects startups to capital with 300-plus investors and 2,500-plus entrepreneurs registered, 221 Investor Connect programmes conducted, 1,417 startup-investor connections and ₹127.09 crore raised so far.
StartupTN is also a key partner in Naan Mudhalvan’s hackathon programme ‘Niral Thiruvizha’, through which we guide student projects toward becoming successful commercial startups. The collaboration connects academic and entrepreneurial ecosystems to help students develop technology-driven solutions for real-world problems.
We have complemented capital and infrastructure with tools that reduce friction and raise quality. The StartupTN Smart Card gives early-stage startups subsidised access to essential services, helping them save precious cash and scale faster. A bilingual call centre answers queries in Tamil and English, ensuring that first-time founders are not lost for want of information.
Through BrandLabs, our ‘Nil-Brand-Sell’ course of 250 minutes in Tamil and English helps founders turn great products into credible brands. Our Corporate Innovation Initiative, through an Open Innovation portal, connects startups with large enterprises such as Bosch, Kauvery Hospitals, Hero MotoCorp, PayU, Pierer Innovation and Daimler India Commercial Vehicles among others, to solve real-world challenges.
The results are visible, measurable and nationally acknowledged. What has changed in the last four years? The answer is systems, not slogans. We revitalised StartupTN, expanded it Statewide, and made inclusion the architecture of growth. We ensured that everyone could access the same rails of mentors, markets and money. Those who once left ideas behind now find a hand extended and a path ahead. We moved from ranking at the bottom to leading the table, from episodic initiatives to compounding institutions. We did not inherit a thriving startup engine. We built one.
Global summit in Coimbatore
The Tamil Nadu Global Startup Summit (TNGSS) 2025, taking place in Coimbatore (October 9-10, 2025) is a milestone in our efforts. Over two days, it will bring together over 30,000 visitors, 2,000 delegates, and 750 exhibitors, creating a vibrant space for collaboration and growth. To ensure meaningful connections, we are deploying a first-of-its-kind AI-enabled matchmaking app to help every participant find the right partners, investors, or resources for their specific needs. The summit is also thoughtfully designed with inclusive infrastructure, including dedicated facilities such as feeding rooms and crèches to ensure a welcoming environment for women participants. Investors, founders, students and global leaders from 35 countries will join hands to shape the next chapter of Tamil Nadu’s startup story.
From masterclasses by Google, Meta, Microsoft, and Harvard Innovation Labs to insights from leading unicorns and industry pioneers, every session will open new doors. With dedicated pavilions on space-tech, corporate innovation, power brands, and government partnerships, this summit is designed to connect you with opportunities, whether you are an entrepreneur, investor, policymaker, or student.
M.K. Stalin is the Chief Minister of Tamil Nadu
