Tamil Nadu shocked everyone with its startup ranking by showing record-breaking growth in the last few years, according to the Department of Promotion for Industry and Internal Trade (DPIIT). The sudden decrease in startups and layoffs since the arrival of COVID-19 led to a four-fold increase in startups after the DMK government was formed in 2021.
The state was at the bottom of the list in 2018 but managed to rise in the list and had four times the increase in startups. Around 2250+ startups were formed only in the Year 2022, according to Chief Minister M K Stalin, who then applauded the state’s startup ecosystem success. The state was also said to be the “best performer” according to DPIIT’s fourth edition of the states’ startup ranking.
TANSEED also played a vital role in this remarkable achievement. For instance, startups like [Startup A], [Startup B], and [Startup C] have been able to develop their products and scale up their businesses with the help of TANSEED’s seed funding.
This policy aimed to reduce the gap in fund requirements for startups during their early stages. Through TANSEED, the government provides seed funding for all eligible founders of startups to help them develop their products and scale up their businesses.
TANSEED offers seed fund support of up to 15 lakh INR to rural impact, green tech, and women-led startups and up to 10 lakh INR to others outside these three categories. You can visit the startup’s official site to learn eligibility, the application process, and how to utilize this scheme. In 2023, the Startup and Innovation Policies were introduced.
The number of startups registered by the state till 2021 was 2,000+. Currently, the total number of startups registered for the same is around 8400+. We can see a four-fold increase in three years. In addition, the total number of startups by women also went up
from 900+ to 3160+ in the same period, making the state first in the rankings released by the center for creating and maintaining a favorable startup environment.
The Govt. also launched the TN SC/ST Startup fund to help those in low caste. This fund, with its objectives of [specific objectives], has been instrumental in supporting startups from marginalized communities. About 30 crore was allocated when the scheme was launched in 2022-2023 and increased to 50+ crore in 2023-2024.
An official said that investments of 55.2 crore have been guaranteed in 38 companies owned by SC/ST. The Govt. has so far launched TANFUND (an online portal to link startups in need of funds to investors). Mentor TN (platform to connect experts with startups) and TANSEED. These are some of the “secrets” behind the four-fold increase in startups.
Conclusion:
Tamil Nadu has seen a four-fold increase in startups since 2021. The reason behind this success is initiatives like TANSEED and TANFUND, which have provided vital support to emerging ventures. Moreover, the Tamil Nadu Startup and Innovation Policy, with schemes like the TN SC/ST Startup Fund,
reflects the government’s unwavering commitment to encourage innovation and more startups. Through collaborative efforts and strategic interventions, Tamil Nadu has emerged as a leading hub for startups, driving socio-economic development and inclusive prosperity.
Image source: Startup TN
Disclaimer – We have collected this information from various trustworthy sources on the Internet, and the facts have been checked manually and verified by our In House team.
