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Beyond Metros: 17 Startups from Tier 2 Cities Secure Govt Grants & Funding

Seventeen startups incubated in Tamil Nadu's tier 2 cities have received significant government grants and seed investments, highlighting a growing innovation hub beyond major metros. The funding includes Rs 50 lakh in DST-NIDHI grants for twelve startups and an additional Rs 60 lakh from the Startup India Seed Fund for five more ventures. These startups are developing solutions ranging from portable nerve-monitoring medical devices and agricultural drones to millet-based foods and ride-hailing platforms for small cities. Officials emphasized that the future belongs to startups solving real-world problems through scalable innovation, regardless of their geographic location.

Key Points: Govt Backs 17 Startups from Tier 2 Cities with Grants & Investments

  • DST-NIDHI grants for 12 startups
  • Startup India Seed Fund for 5 ventures
  • Innovations from healthcare to drones & mobility
  • Focus on public utility & solving local problems
2 min read

17 startups from tier 2 cities receive govt grants, investments

17 startups from cities like Salem & Kanyakumari secured govt grants & seed funding for innovations in healthcare, drones, food tech & mobility. See the rising ecosystem.

"Innovation matters only when it becomes public utility. - Dr T. S. Rao, Former DBT Advisor"

New Delhi, Dec 28

Adding glory to the Indian startup journey, 12 startups incubated at the Department of Science and Technology-supported incubator received grant agreements worth Rs 50 lakh at an event in Tamil Nadu, showcasing innovation from tier 2 cities.

The startups incubated at the DST-supported Sona Inclusive Technology Business Incubator (i-TBI) received grants under the DST-NIDHI initiative to advance their business ideas, it was announced at the 'Think Salem 2025' startup conclave.

Moreover, The 'Startup India Seed Fund' at Sona Incubations invested Rs 60 lakh in five startups.

With these, the ideas and ventures incubated at Salem span healthcare devices, mobility platforms, sustainability, drones, food innovation and applied deep-tech, reflecting the growing maturity of the Salem-centred startup ecosystem.

"Five startups picked up for the Rs 60 lakh grant from the Start-Up India Seed Fund, managed by Sona Incubation Foundation, include those working on management of diaper waste, millet-based food products, and an ed-tech startup offering immersive learning solutions," said Dr S. R.R. Senthilkumar, Executive Chair, Sona Incubations and Principal, Sona College of Technology.

Leading the high Technology Readiness Levels (TRL) cohort is NervePro, a Salem-based healthcare deep-tech startup that has developed an affordable, portable nerve-monitoring system designed to protect facial nerves during high-risk ENT and skull-base surgeries. The startup has completed a proof-of-concept validation study.

Another Tamil Nadu startup, IswiftPro-Min-Sakthi, is an IoT- and AI-enabled solution that digitises appliance-level energy consumption, enabling accurate forecasting, smart billing and energy efficiency for households and institutions.

DroneTribes, based in Salem, has progressed to TRL 6 with indigenously designed drones for agriculture, security and training, with working prototypes and field deployments already underway.

Kanyakumari-based Cabocab is a ride-hailing platform operating across Tier-3 cities in India. With a TRL of 9, the startup is focused on improving last-mile connectivity by offering faster commutes beyond metropolitan markets.

Dr T. S. Rao, Senior Advisor (Retd.), Union Department of Biotechnology, said, "Innovation matters only when it becomes public utility. Take ideas from the lab to society through quality, scale and public-private partnership."

The startup founders came from Salem, Coimbatore, Madurai, Tirupur, Trichy, Hosur, Kanyakumari and Hyderabad, with Technology Readiness Levels ranging from early proof-of-concept to advanced prototype validation.

Sivakumar Palanisamy, Vice President and Chief of Staff, StartupTN, said, "AI will move into everyday life. The future belongs to startups that redesign problems, personalise solutions and build skills-not those chasing big-city addresses."

- IANS

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Reader Comments

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Priya S
As someone from Coimbatore, this makes me so proud! We have immense talent in tier 2 cities, but funding and visibility are always a challenge. The DST-NIDHI grant and seed fund are crucial first steps. Hope investors now take notice and these startups get the mentorship and market access they need to scale up.
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Rohit P
NervePro's affordable nerve-monitoring device is a game-changer. Medical equipment is so expensive in India. If they can make it portable and cost-effective, it will save lives and reduce hospital costs. This is the kind of deep-tech innovation we need more of. All the best to the team!
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Aman W
While this is positive, the real test is sustainability. Getting a grant is one thing, but building a profitable business in a tier 2/3 city is another. I hope there is a clear follow-up plan from StartupTN and the incubator to help with customer acquisition and operational challenges beyond the initial funding.
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Divya L
Love the diversity of ideas! From diaper waste management to millet foods and ride-hailing in small cities. Cabocab focusing on tier-3 cities is smart. Metro ride-hailing is saturated, but connectivity in smaller towns is a huge pain point. Hope they succeed and expand across India! 🚗
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Michael C
Working in tech in Hyderabad, it's impressive to see such a spread of TRL levels from proof-of-concept to near-commercial. DroneTribes at TRL 6 with field deployments is particularly advanced. This structured support from idea to prototype is exactly how

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