Tamil Nadu Chief Minister sanctions investments worth Rs. 9.75 crore to 8 startups under SC/ST Fund

• ByStartupStory     |    May 5, 2023

Tamil Nadu Chief Minister Thiru M.K. Stalin has announced investments worth Rs. 9.75 crore to 8 startups promoted by entrepreneurs from the SC/ST communities. The funding has been provided through the Tamil Nadu Startup and Innovation Mission (StartupTN) under the Tamil Nadu SC/ST Startup Fund. The government has become a shareholder in these companies to guide them on the growth path. This investment in the form of Compulsorily Convertible Debentures (CCD) is aimed at churning out inspirational stories that would spur the creation of more startups by entrepreneurs from the communities in the march towards inclusive mass entrepreneurship.

The Tamil Nadu SC/ST Startup Fund is a Rs. 50 crore fund announced in Budget 2023-24. Preliminary shortlisting of applications was carried out by StartupTN with the support of experts, followed by due diligence, interviewing, and mentoring of the startup founders. The Project Sanction Committee approved investments in these startups. The first batch of investees under this fund received the sanction orders from the Hon’ble Chief Minister for investments to the tune of Rs. 7.5 crore in five startups.

The eight startups that received sanction orders for equity investment under the Tamil Nadu SC/ST Startup Fund are Guhan Industrial and Manufacturing Solutions Pvt Ltd, Shortfundly, India Speak Research Lab Pvt Ltd, Sprint6 Specialized Services Pvt Ltd, TAMS Tribal Green Fuel Pvt Ltd, Namsanthai Kotagiri Tribal Pvt Ltd, and two startups promoted by entrepreneurs from the tribal communities in Hasanoor, Tamarakarai in Erode district, and Kotagiri in The Nilgiris.

Through this investment, Guhan Industrial and Manufacturing Solutions will develop indigenously manufactured abrasive waterjet cutting systems for high precision engineering. Shortfundly, an OTT platform for short-content genre content makers, will scale its operations by increasing its subscriber base, onboarding more content makers onto its hosting platform, and scaling its own film festival to a wider audience. India Speak Research Lab will mature its AI models and GTM with their solution in the media and entertainment domains. Sprint6 Specialized Services will scale its operations by serving more customers in restoring, optimizing, and renovating commercial restroom spaces and offer proactive maintenance support for restrooms.

The investments will not only boost the startups’ businesses but also help create more employment opportunities for the SC/ST communities. These startups will also inspire more entrepreneurs from the community to take up entrepreneurship and contribute to the growth of the state. The Tamil Nadu government’s initiative to support startups from the marginalized communities is a step towards creating a more inclusive and thriving startup ecosystem in the state.

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