Tirunelveli Becomes a Flourishing Centre for Startups

Nitin Konde, Varun Bhardwaj

12 Nov 2024 — 3 min read

Tirunelveli Emerges as a Thriving Hub for Startups

Previously known for its caste problems, Tirunelveli is currently gaining recognition for its thriving entrepreneurship scene. More women from this area are breaking down barriers and entering the startup environment in recent years.

As of September 27, 2024, there were 405 start-ups in the Tirunelveli regional hub, according to data released by the Tamil Nadu Startup and Innovation Mission (StartupTN). This hub is made up of the districts of Tirunelveli, Tenkasi, Thoothukudi, Kanniyakumari, and Ramanathapuram.

Four Key Factors Backing the Startups’ Growth

Thillai Rajan, an IIT-Madras professor of management studies, compiled a collection of data using his information and analytics platform, YNOS Venture Engine. Eighty-eight start-ups have female co-founders. Women have established or co-founded roughly 43% of start-ups, he said.

Tirunelveli entrepreneurs claim that the flourishing start-up ecosystem is the result of four important elements. First, the Zoho Corporation's influence, which brought in a slew of tech-related businesses. In Tirunelveli, a large number of start-ups are established by former Zoho employees. The second aspect was the region's residents' innate spirit of entrepreneurship. People from this area founded some of the well-known retail brands in T. Nagar, Chennai, in recent years. This area is also home to a large number of Silicon Valley residents, according to data from StartupTN.

Thirdly, the tendency was influenced by the growing number of large corporations in and surrounding this region, including Bosch and Tata Power. This has given entrepreneurs more confidence to start businesses in the area. The fourth aspect was StartupTN's assistance, which has given nearby start-ups access to vital resources, networking opportunities, and mentorship.

This region's startups have also been successful in obtaining significant finance. Nine start-ups have received funding in the area, according to StartupTN. Two are recipients of the Tamil Nadu SC/ST Startup Fund, while five are recipients of TANSEED. While one start-up secured seed investment, the other received angel funding.

What is TANSEED?

TANSEED is a grant programme run by the Tamil Nadu Startup and Innovation Mission (TANSIM), the government of Tamil Nadu's MSME Department's policy implementation agency. In particular, the initiative aims to pre-incubate and accelerate early-stage businesses throughout Tamil Nadu, making the majority of them investible (capable of obtaining TANSIM funding support) and generating follow-on funding.

The goal of TANSEED is to establish a platform for inclusive innovation solutions that benefit people on a social and economic level. These solutions might be technology or business process orientated.

Tamil Nadu Startup and Innovation Mission

In order to create an inventive and conducive environment in the state, the Tamil Nadu Startup and Innovation Mission (TANSIM) was established. In order to create high-growth entrepreneurial ventures in a variety of industries, including agriculture, manufacturing, healthcare, education, logistics, the social sector, urban development, the environment, Fintech, and ICT, TANSIM's primary activities include fostering innovation, encouraging investments in R&D, infrastructure support, knowledge creation, technological development, and skilled labour. It carries out a number of programs to assist and foster new businesses in the state.