About this programme
An equity investment fund by the Government of Tamil Nadu designed to promote inclusive entrepreneurship among Scheduled Caste and Scheduled Tribe founders. The fund invests in innovation-led and scalable startups with more than 50% SC/ST ownership, providing capital in the form of equity or debt based on Investment Committee evaluation. As of end of FY 2025-26, the fund has supported 43 SC/ST-led startups with total investments of Rs 60.80 crore. It is run by StartupTN (Tamil Nadu Startup and Innovation Mission).
This is equity funding — the investor (often through a fund) takes a stake in your company in exchange for capital, rather than lending or granting money. You give up some ownership; you don’t repay it like a loan. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
The fund operates through batch-wise application cycles. Startups undergo business validation followed by Investment Committee review and Project Sanction Committee authorization. Funding is deployed as equity or debt instruments based on startup requirements and committee recommendation. The typical application-to-sanction timeline is 4-6 months.
Who can apply
Startups must have more than 50% equity held by SC/ST founders with operational control vested in SC/ST shareholders. Must be incorporated as a startup under Tamil Nadu Startup and Innovation Policy, domiciled in Tamil Nadu with principal operations in the state. Founders should be native(s) of Tamil Nadu or of Tamil origin.
How to apply
- Draft application using the StartupTN portal form
- Prepare and compile required documents (business plan, founder details, equity structure, financial projections)
- Submit via the official StartupTN TANFUND portal (https://www.tanfund.in/)
- Complete business validation and Investment Committee evaluation
- Receive Project Sanction Committee authorization
Documents you’ll typically need
- Proof of SC/ST status of founder(s)
- Business plan and project details
- Founder/promoter background and credentials
- Financial projections and fund utilization plan
- Certificate of Incorporation
The exact checklist depends on the programme and your specifics.
Frequently asked
What types of startups are eligible for the TN SC/ST Startup Fund?
Any startup incorporated under the Tamil Nadu Startup and Innovation Policy with more than 50% equity held by one or more SC/ST founders, domiciled and operating in Tamil Nadu.
In what form does the fund provide support?
The fund provides capital in the form of equity or debt instruments based on the evaluation and recommendation of the Investment Committee.
How long does the application process take?
The complete application-to-sanction process typically takes 4-6 months from the date of acceptance of the application.
What is the geographic scope?
The company/enterprise must be domiciled in Tamil Nadu and its principal base of operation should be within Tamil Nadu.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.