“I am not a bureaucrat,” he says, his voice steady with purpose. “I am an entrepreneur.” This one line captures the spirit of Tamil Nadu’s startup story. One story that has discovered its own rhythm creating a jugalbandi of progress with purpose.
For decades, the narrative was that Tamil Nadu missed the startup bus especially when compared to Bengaluru. But Sivarajah disagrees that it is an assumption built on flawed comparison. While Bengaluru built its startup legacy through technology, Tamil Nadu is now shaping its own path. It’s rich industrial legacy is today powered by new-age innovation. “We are positioning Tamil Nadu as a hub for Advanced Manufacturing, Robotics, Space Tech, and Electronics,” points Sivarajah. The state, already India’s leading electronics exporter, is now witnessing rapid growth in areas that blend software and hardware, from IoT and AI-driven systems to deep tech ventures. Over the past two years, Tamil Nadu has emerged as the second-largest destination for deep-tech investments in India securing over USD184 million in funding.
From Madurai’s Lanes to Helm State’s Innovation
Sivarajah’s story begins far from the glossy startup corridors of Chennai. Born in Madurai, he started a software company in 1992, long before the term startup had entered India’s vocabulary. The 90s were unforgiving for a first-generation entrepreneur outside metro cities. There were no mentors, no angel investors, no incubation centres. “I struggled a lot. We didn’t even know what startup valuation meant back then. You built a product, tried to sell it, and if it failed, you learned and started again,” recalls Sivarajah. Of the three products he built, one succeeded and two failed. But it was in those failures that the seed of a bigger idea took root. An idea that would later transform Tamil Nadu’s entrepreneurial ecosystem. “Back then I realised small towns lacked an ecosystem. For everything one had to travel to Chennai or Bangalore. I wanted to change that,” said Sivarajah reflecting his conviction.
In 2014, he founded Native Lead Foundation and its allied investment arm, Native Angel Network, with a mission to help entrepreneurs from smaller towns. Under his leadership, Native Lead created a bridge between local talent and global investors. Soon startups began to emerge from Coimbatore, Salem and Trichy, a proof that innovation doesn’t need a postal code.
When the Tamil Nadu government was scouting for someone to lead its startup mission, Sivarajah. His lived experience was exactly what the state needed.
The Entrepreneur Who Turned Administrator
His mandate as the mission director was clear – to build a state-backed ecosystem that enabled and empowered entrepreneurs across Tamil Nadu. But he didn’t just create another government department, he infused the system with entrepreneurial spirit. “We brought structure, support and scalability,” points Sivarajah. The results speak for themselves. In just four years, Tamil Nadu’s registered startups grew from around 2000 to over 12,000, a six-fold jump. From being ranked low in the national startup index, the state now stands shoulder-to-shoulder with Karnataka, Maharashtra, and Gujarat. NITI Aayog recently termed Tamil Nadu a model innovation state.
Startups with a Soul
Behind the numbers lies a deeper philosophy rooted in inclusivity and shared growth. The run behind becoming a unicorn startup makes no sense to Sivarajah as he finds no logic in chasing that vanity metric. “Instead of one company worth Rs 8000 crore, I would rather see eighty companies worth Rs 100 crore each. That way, more founders, wealth and balanced growth are created,” he justifies. For him, entrepreneurship isn’t about inflated valuations or flashy headlines.
94% Survival rate
“We don’t want a startup culture where founders burn investor money and call it success,” he highlights. Across the world, it’s often said that only about two out of ten startups survive. But Tamil Nadu’s story breaks that stereotype. According to DPIIT data from the Government of India (2024), since 2016, only 6 per cent of registered startups in Tamil Nadu have shut down, meaning an extraordinary 94 per cent are still active. One of the highest survival rates in the country!
“This is a huge number,” says Sivarajah Ramanathan, adding that StartupTN has been studying these companies to understand their journeys. “Most of them are surviving but not scaling. It is a choice, not a compulsion and that too deserves respect,” he points assertively. He believes the next step is to focus on incubators that help founders refine business models, identify niches and innovate beyond competition. With 125 incubators across the state, StartupTN is now focusing on capacity building to ensure these centres can mentor startups more effectively.
Reimagining the Ecosystem
The mission is grounded on three principles: inclusivity, intellectual capital and innovation depth. Tamil Nadu prides on inclusivity and is the first in India to launch dedicated funds for SC/ST, transgender, women and differently-abled entrepreneurs. “This is our unique identity. We don’t just talk about inclusion; we fund it,” says Sivarajah proudly. The next strength of the state is the abundant availability of intellectual talent, a key ingredient for innovation. Around 35 per cent of India’s top 100 higher education institutions are here, making it a preferred destination for R&D and GCC operations. And to spread innovation across, incubation centres across the state offer mentorship, market access and investor connect.
A State on the Move
The impact is beginning to show. Events like the Global Startup Summit in Coimbatore connected over 115 investors with 400+ startups, leading to Rss 127 crore in raised capital. The government has also announced a Rs 100 crore Fund of Funds to attract VCs and institutional investors into Tamil Nadu.
Already homegrown success stories like Zoho, Freshworks, Chargebee, and Kissflow provide world-class innovation can come from Tamil Nadu’s soil. “Our goal isn’t just to create global names. It is to make entrepreneurship a cultural aspiration for our youth,” highlights Sivarajah. By 2026, Sivarajah wants Tamil Nadu to have 15,000 startups and a more deeper, connected ecosystem. n
With input from Aadhi Jayaprabha M and
Mohamed Ameen M
