Tamil Nadu is doubling down on its deeptech and advanced manufacturing ambitions. The Tamil Nadu Industrial Development Corporation (TIDCO) has announced an investment of ₹25 Cr each in spacetech startup Agnikul Cosmos and electric motorcycle maker Raptee Energy, marking the first deployments under the state’s Startup Investment Policy 2025.
The announcement was made by Tamil Nadu industries minister TRB Rajaa on X, noting that approval letters were handed over to both companies on March 14. TIDCO also confirmed the move, stating that the investments are aimed at supporting startups across growth stages in sunrise sectors.
Rajaa underscored that the state’s new policy is designed to back high-potential startups emerging from Tamil Nadu’s deeptech and advanced manufacturing ecosystems. The focus areas include electric vehicles, aerospace and defence, renewable energy, semiconductors, medical electronics, artificial intelligence, blockchain, and quantum computing.
“Our goal is to ensure that Tamil Nadu’s most promising technology companies find patient capital, strategic support and scale opportunities,” Rajaa said.
Founded in 1965, TIDCO serves as the Tamil Nadu government’s nodal agency for industrial development, facilitating joint ventures and infrastructure projects across the state. With this move, it is now stepping more aggressively into venture-style investments to catalyse innovation-led growth.
The funding comes at a time when Agnikul Cosmos is witnessing strong investor interest. The Chennai-based spacetech startup recently raised $17 Mn at a valuation of $500 Mn from investors including Advenza Global, Artha Select Fund, Atharva Green Ecotech, and HDFC Bank.
Founded in 2017 by Srinath Ravichandran and Moin SPM, Agnikul is building small-lift launch vehicles tailored for the growing small satellite market. Its flagship rocket, Agnibaan, is a two-stage launch vehicle capable of carrying payloads of up to 300 kg to low Earth orbits of around 700 km. The startup also claims a global first with its fully 3D-printed semi-cryogenic rocket engine, Agnilet, highlighting India’s growing capabilities in private space innovation.
On the mobility front, Raptee Energy represents Tamil Nadu’s push into premium electric vehicles. Founded in 2021 by Dinesh Arjun, Keerthivasan Ravi, Karthikeyan Adhikesavan, and Phunith Kumar, the startup manufactures electric motorcycles, with its flagship T30 priced at INR 2.4 Lakh (ex-showroom).
Raptee operates a 4.5-acre manufacturing facility in Chennai with an installed annual capacity of 1 lakh units. The company had also secured funding support from the Union government’s Technology Development Board (TDB) last year, further strengthening its production and R&D capabilities.
The twin investments reflect a broader shift in India’s startup funding landscape, particularly in deeptech. Traditionally, venture capital firms have been cautious about such startups due to long R&D cycles, high capital requirements, and delayed commercialisation timelines. However, momentum is building.
Industry data indicates that deeptech emerged as one of the most active sectors in 2025, recording 87 deals worth $500 Mn. Additionally, over 20% of newly announced venture funds carried dedicated deeptech mandates.
Policy-level support is also accelerating this trend. Initiatives such as the India Deep Tech Alliance (IDTA), which aims to deploy over $1 Bn into the sector, and the Union government’s INR 1 Lakh Cr research, development and innovation (RDI) scheme, signal sustained institutional backing.
Against this backdrop, Tamil Nadu’s targeted investments could play a catalytic role in nurturing capital-intensive startups, positioning the state as a key hub for next-generation technologies.
