India

Tamil Nadu

MEMBERS:
StartupTN

Tamil Nadu is marching towards a $1 trillion economy 2030 vision and our startups and innovators are playing an impeccable role in this journey. We are nurturing the startup culture in the nook and corner of the state in alignment with our aim for an innovation-driven economy that ensures socio-economic growth.

Thiru T.M. Anbarasan
Honorable Minister, Micro, Small and Medium Enterprises Department

Highlights

Tamil Nadu is bursting with entrepreneurial potential. The second wealthiest state by GDP and the second most industrialized state in India, it has the largest number of factories in the nation and is ranked the most economically free state by the Economic Freedom Rankings for the States of India.


Chennai and Coimbatore are the core hubs in the Tamil Nadu ecosystem with Chennai among India’s leading startup communities. StartupTN, a state government mission under the Micro, Small and Medium Enterprises Department has been operating in 10 districts as hubs catalyzing startup activities throughout the state. Tamil Nadu has seen a notable increase in the number of registered startups, exceeding 7,562 in 2023, and has attracted significant VC investment. The ecosystem is supported by more than 105 incubators, the most of any state in India.


Tamil Nadu’s Startup Policy 2023 aims to establish 15,000 startups and position the state as one of the top 20 global startup destinations by 2032. The State of Tamil Nadu provides targeted policies and implements support through StartupTN and multiple government departments have created startup specific programs for their respective sectors. Additionally, tremendous efforts have been focused on improving ease of doing business.


StartupTN has launched initiatives including the TANSEED seed fund, reality show Startup Thamizha, and the TN SC/ST Startup Fund for marginalized communities. It also provides mentorship portal MentorTN, TANFUND to connect investors with startups, and BrandLabs and Launchpad accelerators. StartupTN has also created a thematic fund of funds, established the Centre of Innovations, launched the Startup Smart Card, and offers startup facilitation services and corporate engagement forums.

Ecosystem by the Numbers

ECOSYSTEM VALUE
(H2 2020 - 2022)
$11 bn
GLOBAL AVG. $34.6 bn
TOTAL EARLY–STAGE FUNDING
(H2 2020 - 2022)
$381 m
GLOBAL AVG. $970 m
ECOSYSTEM VALUE GROWTH
(H2 2020 - H2 2022 VS H2 2018 - H2 2020)
48%
48% 48 100 47% 47 98 0
GLOBAL AVG. 47%
NUMBER OF UNICORNS
(H2 2020 - 2022)
2
GLOBAL AVG. 4
MEDIAN SEED ROUND (H2 2020 - 2022)
$470 k
GLOBAL AVG. $821 k
MEDIAN SERIES A ROUND (H2 2020 - 2022)
$4.8 m
GLOBAL AVG. $6 m
SOFT. ENGINEER SALARY (2022)
$8 k
GLOBAL AVG. $46 k
EARLY-STAGE FUNDING GROWTH (2019 - 20 VS. 2021 - 22)
7
Scale of 1 (lowest) to 10 (highest)
TOTAL VC FUNDING (2018 - 2022)
$2.6 bn
GLOBAL AVG. $6.6 bn
TIME TO EXIT (2018 - 2022)
8.9 years
GLOBAL AVG. 9 years
EXIT AMOUNT (2018 - 2022)
$16.8 bn
GLOBAL AVG. $11.3 bn
EXIT COUNT (#)
(2018 - 2022)
51
GLOBAL AVG. 91
8
7
5
18
13
2018
2019
2020
2021
2022

Sub-Sector Strengths

Cleantech

The Rs. 1000 crores ($120 million) Tamil Nadu Green Climate Fund supports climate change mitigation and greening projects with an objective to lead India in climate justice. Tamil Nadu Industrial Policy 2021 includes provisions for promoting green and sustainable industries. The government of Chennai’s Climate Action Plan is a roadmap for the city to become carbon neutral by 2050.

E-commerce

With high digital penetration and easy access to both manufacturing facilities and major ports, Ecommerce is booming in Tamil Nadu. CaratLane, an online jewelry platform, raised a $555 million secondary market round in August 2023 and Exoticamp, an online platform that enables users to discover and book private camping sites, secured $480,000 in seed funding in October 2023.

Fintech

The Tamil Nadu FinTech Policy 2021 aims to transform the state into a leading global Fintech hub by 2025. A Fintech city is in development in Chennai. KiVi, which provides farmers with access to credit, raised $1.65 million in seed funding in October 2023 and TVS Credit, a financial service provider, secured $88 million in a June 2023 secondary market round. Veritas Finance provides loans to SMEs and has raised $324 million to date. Debt marketplace Yubi was valued at $1.5 billion in July 2023.

Reasons to Move Your Startup to Tamil Nadu

Established Infrastructure

Tamil Nadu is an established industrial hub, with ample manufacturing facilities and logistical connections including international ports. The state has built and continues to develop a robust and resilient digital infrastructure, and is in the process of laying a fiber optic network covering more than 12,000 villages, over 500 town panchayats, 121 cities, and 15 corporations.

Growing Innovation Hub

IIT Madras Research Park is India’s first university-based research park. It boasts 70+ R&D partners, 200+ labs and test facilities, 200+ startups incubated, and 1,300+ patents filed to date. Tamil Nadu Industrial Development Corporation Limited has announced plans for Tamil Nadu Knowledge City, a global knowledge ecosystem that will bring together universities, knowledge-based industries, and sustainable living to fuel innovation.




Skilled Talent

Tamil Nadu offers the largest pool of technically qualified professionals in India. More than 13,00,000 graduates emerge from the state each year, including over 200,000 engineering graduates. Tamil Nadu Skill Development Corporation provides training to unemployed youth and created the Naan Mudhalvan scheme, which identifies potential training providers to impart skills training based on industry gaps.

Selected Startup Organizations

Startup Genome Members

MEMBER
StartupTN

Tamil Nadu Startup and Innovation Mission (TANSIM), branded as StartupTN, functioning under the aegis of the Micro, Small and Medium Enterprises Department, Government of Tamil Nadu, is the nodal agency for startups and innovation in the state. StartupTN is striving towards nurturing and strengthening a benevolent startup ecosystem in Tamil Nadu and positioning the state as the top startup ecosystem in the country and among the top 20 startups ecosystems globally.

Key Ecosystem Players

IIT Madras Research Park (IITMRP)

India's first university-based research park, IITMRP aspires to build a knowledge and innovation ecosystem where industry leaders and scholars can collaborate with state-of-the-art technology to integrate and apply advancements in knowledge to real-time products or services. Through the fostering of partnerships and assisting new ventures, IITMRP strives to transform and exceed global research and development industry standards.

Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC)

TNIFMC is a professional investment management company managing multiple thematic funds registered under the SEBI AIF Regulations. The government of Tamil Nadu is an anchor invested in all the funds. TNIFMC aims to play a supportive role in propelling Tamil Nadu’s GDP to $1 trillion by 2030 by channeling private investments into startups and enterprises in the state.

EDII

The mission of EDII is rapid, sustainable, and inclusive growth of MSM enterprises and innovation by youth and adults across Tamil Nadu through effective entrepreneur competency development, partnerships, business network development, advocacy, training, communication, innovation promotion, and business facilitation services, leading to job growth and economic development.

InnovateTN

StartupTN and the Directorate of Technical Education (DOTE) have supported the establishment of three FabLabs branded as InnovateTN Labs in cities in Tamil Nadu. Equipped with fundamental machinery and advanced manufacturing capabilities such as 3D printing, laser cutting, PCB engraving, and an array of essential tools for fabrication, the labs offer comprehensive inventories to facilitate innovations in IoT.

TIDCO

The TamilNadu Industrial Development Corporation Limited (TIDCO) has established various facilities including Tamil Nadu Smart and Advanced Manufacturing (TANSAM), supported by Siemens; Tamil Nadu Centre of Excellence for Advanced Manufacturing (TANCAM), supported by Dassault; Tamil Nadu Advance Manufacturing Centre of Excellence (TAMCOE), supported by GE Aviation; and TICEL Bio Park Limited (TICEL), specializing in translating research into commercially viable technologies.

iTNT Hub

iTNT Hub acts as a catalyst that engages, activates, and brings together diverse industries, a forward-thinking government, global alliances, its thriving entrepreneurial capabilities, and India’s vast, untapped capability to create a thriving innovation ecosystem. It connects startups working in emerging and Deep Tech areas with an academic network of more than 570 engineering colleges, engaging with researchers and industry partners to pave the way for innovation that will drive the world of tomorrow.

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