Tamil Nadu Emerging Sector Seed Fund (TNESSF) for Indian Startups

The Tamilnadu government is calling for applications from Indian Startups for investment from the Tamil Nadu Emerging Sector Seed Fund (TNESSF) was announced in the state budget in March. This Rs.50 crore fund has been established to invest in both startups and other enterprises that are working in sunrise/emerging sectors. The fund is being managed by Tamil Nadu Infrastructure Fund Management Corporation. Click here for more details on Startup India Seed Fund Scheme (SISFS)

Objective of TNESSF

The primary objective of the Tamil Nadu Emerging Sector Seed Fund (TNESSF) is to invest in start-ups and undertakings in the sunrise/ emerging sectors.

Eligibility Criteria

The eligibility criteria to apply for the Tamil Nadu Emerging Sector Seed Fund (TNESSF) scheme are as follows:

Eligibility Criteria for Startups

The startup applying for the fund should be a company established under the Companies Act, 2013, or a limited liability partnership registered under the Limited Liability Partnership Act, 2008.
To avail of the fund, the startup should be headquartered in Tamil Nadu or be willing to relocate to Tamil Nadu.
Only the startups working towards the innovation, development, or improvement of products or processes in any sector are eligible to apply for the fund
The startup should be in existence for less than ten years from the date of its incorporation.
Turnover of the startup for any of the financial years since incorporation has not exceeded Rs. 25 Crores.

Eligibility Criteria for Non-startups

Companies established under the Companies Act, 1956/ 2013 can apply for this scheme
As mentioned above campiness Should be headquartered in Tamil Nadu or be willing to relocate to Tamil Nadu or have significant operations in Tamil Nadu can apply for the fund
The company should be working towards innovation, development, or improvement of products or processes in the following emerging sectors:
- AI/ML and Cloud Computing
- Advanced Manufacturing/ Robotics
- Blockchain, Cyber Security, and IoT
- AR/VR and AgriTech
- HealthTech and EdTech,
- Climate Action and FinTech,
- CleanTech, Future of Work, Gaming, and AdTech

Other emerging sectors listed in the TN Industrial Policy are also eligible to apply for the fund

TimeLine for Submit Application

There is no deadline for the submission of applications. However, the first batch of evaluations will cover proposals received till 30th May 2022.

Application Procedure

The application procedure for (TNESSF) is as follows:

Interested applicants may send their proposals to tnessf@tnifmc.com.
There is no prescribed template for the submission of applications. Applicants may email their written proposals containing information About the Company, About the BusinesTamil Nadu Emerging Sector Seed Fund (TNESSF) s/ Revenue Model, the Funding Requirement, and the Use of the funds.
Tamil Nadu Infrastructure Fund Management Corporation Limited would revert to applicants for any further information.
Shortlisted applicants would be invited for direct interactions in a multi-staged selection process

Click here to know more about the Tamil Nadu Startup Policy

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Frequently Asked Questions

Common questions about TNESSF Tamil Nadu Seed Fund for Startups.

The Tamil Nadu Emerging Sector Seed Fund (TNESSF) is a Rs.50 crore fund established by the Tamil Nadu government to invest in startups and other enterprises working in sunrise or emerging sectors. The fund is managed by the Tamil Nadu Infrastructure Fund Management Corporation.

The primary objective of the Tamil Nadu Emerging Sector Seed Fund (TNESSF) is to invest in start-ups and undertakings that are innovating, developing, or improving products or processes in sunrise or emerging sectors.

Both startups and non-startups are eligible to apply for TNESSF. Startups should be registered as a company or LLP, headquartered or willing to relocate to Tamil Nadu, and working on innovation in any sector. Non-startups should be registered companies headquartered or with significant operations in Tamil Nadu, working in emerging sectors like AI/ML, advanced manufacturing, blockchain, cyber security, AR/VR, and others.

There is no specific deadline for submitting applications for TNESSF. However, the first batch of evaluations will cover proposals received till 30th May 2022.

Interested applicants can send their proposals to tnessf@tnifmc.com. There is no prescribed template, but the proposal should include information about the company, business/revenue model, funding requirement, and use of funds.

After receiving the proposals, the Tamil Nadu Infrastructure Fund Management Corporation Limited will revert to applicants for any further information. Shortlisted applicants will be invited for direct interactions in a multi-staged selection process.

No, TNESSF is not only for startups based in Tamil Nadu. Startups headquartered outside Tamil Nadu can also apply, provided they are willing to relocate to Tamil Nadu if selected.

The eligibility criteria for startups applying for TNESSF include being a registered company or LLP, headquartered or willing to relocate to Tamil Nadu, working on innovation in any sector, being in existence for less than 10 years, and having a turnover not exceeding Rs. 25 crores in any financial year since incorporation.

The emerging sectors covered under TNESSF include AI/ML and Cloud Computing, Advanced Manufacturing/Robotics, Blockchain, Cyber Security, IoT, AR/VR, AgriTech, HealthTech, EdTech, Climate Action, FinTech, CleanTech, Future of Work, Gaming, AdTech, and other sectors listed in the Tamil Nadu Industrial Policy.

The funds from TNESSF will be utilized to invest in startups and undertakings working in sunrise or emerging sectors, to support innovation, development, or improvement of products or processes in those sectors.