TN issues orders for ₹7.5 cr equity investment in 5 startups

CHENNAI: The State government has issued orders for making equity investment in five startups under Tamil Nadu SC/ST Startup Fund through Tamil Nadu startup and innovation mission (Startup TN).

Chief Minister MK Stalin on Friday issued sanction orders for equity investments to the tune of Rs 7.5 crore in five startups under the Tamil Nadu SC/ST Startup Fund (StartupTN). In providing the equity investment, the State government has become a shareholder in the companies, Unibose Technology Pvt Ltd (Rs 2.5 crore), Pack N Back Solutions Pvt ltd (Rs 2 crore), Eco Soft Zolutions Pvt Ltd (Rs 1 crore), Ywe Auto Assist India Pvt Litd (Rs 1 crore) and Eco Soft Zolutions Pvt Ltd (Rs 1 crore) and PEAS Automation Technologies Pvt Ltd (Rs 1 crore).

The government has earmarked Rs 30 crore for the funds through StartupTN in the State Budget for 2022-23. The scheme intended to promote entrepreneurship among SC/ST people has received 330 applications since May 2022. The project sanction committee has approved Rs 7.5 crore investment in the form of Compulsorily Convertible Debentures (CCD) after detailed evaluation. Equity investment from the government lends more credibility to the companies, which would help them acquire new clients, expand to more markets and sales spaces.

The chief minister also launched "Companies compliances and Financials Monitoring System" and its exclusive website www.ccfms.tn.gov.in to monitor the performance of public sector undertakings. The state government has already launched Tamil Nadu Emerging Sector Seed Fund to invest in emerging sectors like robotics, aerospace and defense, digitization, artificial intelligence and climate technology. The government has proposed to increase the seed fund to Rs 500 corre in the next fiscal.

Finance Minister Palanivel Thiaga Rajan and Chief Secretary V Iraianbu were present during the function.