Chennai, the capital city of Tamil Nadu, is very quickly transforming into one of the most vibrant startup scenes in India. Having experienced its industrial evolution in the past decade and attracting many multinational firms, the city has created the right environment for innovation and venture capital. Chennai is gradually becoming a popular hub for start-ups because of the increasing number of talent, quality education centers and the enabling environment for innovation and development of technologies.
The city also provides a well-developed environment powered by proper IT support, incubators and accelerators, and governmental programs focused on the promotion of start-ups, thereby helping the startup IT companies in Chennai.The Infotech, health care, space tech, e-commerce, automobile and manufacturing industries are already growing in Chennai and have emerged as new hot belts in the country and abroad.
The fintech industry, specifically, has indeed grown rapidly, primarily, due to the use of digital transactions and financial tools. The following are the emerging sectors of Chennai-based healthcare Startups; Telemedicine start-ups, AI healthcare services, and Medical Devices.
Related to this, the emerging new space business sector is expanding with enterprises in satellites, space travel, and investigation. New-era e-commerce ventures are taking advantage of Chennai’s manufacturing excellence and sound logistics to penetrate the expanding online consumer segment across India. The government of this city has equally supported this cycle by providing incentives in terms of funds and fiscal transactions as well as providing a favorable framework.
Chennai is not only a city of traditional strengths in business but also a forefront of new-age possibilities for every business lover, investor, and start-up who seeks to make a difference in the global market. Being a city manufacturing hub mixed with a start-up culture, Chennai is poised well to be one of the major start-up locations in India.
Key Factors Driving Startup Growth in Chennai
1. Strong Industrial Base: This city is called the ‘Detroit of India’ because of the automotive, manufacturing and industrial businesses found here. This serves as a good starting point for most startups especially in industries such as manufacturing, supply, and logistics industries.
2. Talent Pool: Chennai is home to many premier institutions like IIT Madras, Anna University, and various Engineering colleges. These produce thousands of skilled engineers, technocrats and managers. These are available in plenty, particularly in the field of engineering, technology, and management which are very vital for the nurturing of startups. Hence, making a conducive environment for startup companies in Chennai for freshers.
3. Supportive Ecosystem: Chennai has a quite strong startup environment with many incubators, accelerators and coworking spaces. TIDCO, Chennai Angels, and TANSIM offer funding support, business guidance, and connections to business innovators who want to fund startup companies or chase an idea.
4. Government Initiatives: Tamil Nadu State government has come up with various incentives and start-up grants and policies regarding startup funding, Tax exemptions, and startup-friendly policies for business in the state. It is mentioned above through policies like the Tamil Nadu Startup Policy that the state supports young innovators and startups.
5. Access to Funding: There is a combination of venture capital and angel investments has been observed in Chennai and there is several investors and venture funds are actively seeking investments in Chennai. Financial partners are easily accessible because the city is adjacent to other financial centers, such as Bengaluru and Mumbai.
6. Sectoral Diversity: Chennai Startup Ecosystem has various high-growth sectors like Fintech, Healthcare, Space, and E-commerce, making it quite diverse in Industry, Talent and Opportunity.
7. Connectivity and Infrastructure: The place has good accessibility both locally and intercontinentally with easy transport, an international airport and good working additional infrastructure that aids corporate growth.
8. Growing Consumer Market: Consumer markets for food, clothes, and accessories exist in Chennai and its other regional markets, and have a strong middle class engaging more in digital usage which offers an existing e-commerce market, mobile financial solutions and digital solution firms.
List of 16 Startup Companies in Chennai
1. Agnikul Cosmos
Founded: 2020
Industry: Aerospace and Defence
Number of Employees: Approximately 50-100
Agnikul Cosmos is a private venture set up in 2020 engaged in the manufacturing of space technologies located in India. As a result, it is dedicated to the SS/LV segment, with the primary goal of offering affordable and tailored solutions to the space sector. The main product offered by the company is Agnibaan, which is a fully configurative rocket designed to place small loads into orbit.
In effect, Agnikul wants to improve India’s positioning in the international space industry to realize on-demand access to space on demand. It is present in the aerospace industry more specifically in the launch service providers for small satellites. The firm itself strives to transform the market of space launching services using advanced technologies and advances.
Services Provided:
- Design and development of small satellite launch vehicles
- Customized payload integration
- Affordable access to low Earth orbit
Contact Details:
- Address: 3rd floor, E-Block, IITM RESEARCH PARK, E3-04, Kanagam, Tharamani, Chennai, Tamil Nadu 600113
- Website: www.agnikul.in
- Phone Number: 099625 07524
2. Cprime
Founded: 2003
Industry: IT consulting and outsourcing
Number of Employees: Approximately 500-1000
Cprime was founded in 2003, as a strategic consulting firm that focuses on offering digital transformation, product management, cloud and other technology solutions and services. They include digital transformation, product approaches, scaled agility, application development, custom software development, DevOps, and business software solutions.
Cprime also offers training solutions within different sectors including enterprise and product agility data and AI, portfolio/FinOps, software development as well as technology platforms. Their purpose is to help the clients to create and succeed in today’s technologically driven environment and redesign the workplace. Hence, we can say that there are startup companies in Chennai for internship.
Services Provided:
- Agile transformation consulting
- Product management solutions
- Technology implementation and training
Contact Details:
- Address: 9th, IITM RESEARCH PARK, 9 E, Kanagam Road, Kanagam, Tharamani, Chennnai, Chennai, Tamil Nadu 600113
- Website: www.cprime.com
- Phone Number: Unavailable
3. Superops
Founded: 2020
Industry: Managed Service Provider(MSP)
Number of Employees: approximately 180 employees
SuperOps.ai was launched in early 2020 and is an MSP automation and management platform built with an emphasis on AI capabilities. Jointly, PSA and RMM bring better coordination and service delivery since PSA and RMM are presented in one interface.
Some of the aspects observed are asset business management, patch business management, service desk business management, project management, and business management of documents. This is whereby the platform uses artificial intelligence to self-learn from routine tasks without frequent human interference and enhance the satisfaction of the clients by eliminating the many errors that its human counterpart is prone to. In October 2023, SuperOps.ai raised $14 million to boost the services it provides and assist MSPs globally.
Services Provided:
- Professional Services Automation (PSA)
- Remote Monitoring and Management (RMM)
- IT Documentation
- Asset Management
- Patch Management
Contact Details:
- Address: 6th Floor, Ramanujan IT City, Ramanujam Sez, Hardy Tower, Tharamani, Chennai, Tamil Nadu 600113
- Website: www.superops.com
- Phone Number: Unavailable
4. Flintobox
Founded: 2013
Industry: Education
Number of Employees: Approximately 60-70
Flintobox is an Indian start-up founded in September 2013 having Arunprasad Durairaj, Vijaybabu Gandhi, and Shreenidhi Srirangam as founders that offer STEAM based educational activity boxes for children. Every month, they post a new topic containing materials that help to support early childhood development.
As a subscription-based business, Flintobox sends these kits to subscribers’ doorsteps. According to the information from the company as of September 2024, it has a total human resource of 53. The use of novel ideas in executing its concepts has accorded Flintobox some credit in the market, for instance, the recognition as the “Best Education Startup of 2014” by the Confederation of Indian Industries (CII).
Services Provided:
- Theme-based activity boxes for children
- Educational toys and materials
- Subscription-based learning kits
Contact Details:
- Address: G2, No 36, Chandrasekaran Avenue 2nd Main Road, Thoraipakkam, Chennai, Tamil Nadu, India, 600097
- Website: www.flintobox.com
- Phone Number: +91 75501 01010
5. ePlane Company
Founded: 2019
Industry: Aviation and Aerospace
Number of Employees: Approximately 101 employees.
The ePlane Company is an early-stage Indian startup founded in 2019 by Professor Satya Chakravarthy and Pranjal Mehta that aims to disrupt urban mobility with electric Vertical Takeoff and Landing (eVTOL) aircraft. Once a venture prototype at IIT Madras, the Indian company will tackle issues of traffic jams and pollution by manufacturing efficient, all-electric and modular air taxis in the mid-mile urban air mobility space.
The e200x that they developed takes this format; a lift-plus-cruise configuration means that the conveyors would be useful for short hops without requiring a battery recharge.
In November 2024, ePlane closed its series B round at $14m to step up production & testing; aimed at manned eVTOL testing by mid-2025 and commercial services by 2026.
Services Provided:
- ePlane Serve
- ePlane Cargo
- ePlane Build
Contact Details:
- Address: X6RH+V5H Department of Aerospace Engineering, Machine Design Section Road, Indian Institute Of Technology, Chennai, Tamil Nadu 600036
- Website: www.eplane.ai
- Phone Number: Unavailable.
6. Gen4 Manufacturing
Founded: 2019
Industry: Manufacturing
Number of Employees: Approximately 20-50
Gen4 Manufacturing Private Limited is an India-based company that was established on November 19, 2019, and it is involved in the manufacturing and emerging company related to small-scale textile machinery. Their specialty is constructing collocated production systems that are lean, agile, resilient, and low-energy; based on IoT and AI.
This is designed to cut overhead costs of transport, waiting, and coordination, and in most cases eliminates over production for market requirements. It is incorporated in Tamil Nadu at Chennai and functions under the industry type of manufacturing domestic appliances.
Services Provided:
- Additive manufacturing (3D printing)
- Prototyping and product development
- Manufacturing consulting services
Contact Details:
- Address: 3A, Lakshmana Perumal Nagar 4th Cross St, Raja Garden, Kottivakkam, Chennai, Tamil Nadu 600041
- Website: www.gen4.co.in
- Phone Number: 098404 52817
7. GreenPod Labs
Founded: 2019
Industry: Food
Number of Employees: Approximately 20-30
GreenPod Labs was established in 2019 and primarily focused on post-harvest technology solutions for agricultural value focusing on reducing food waste. It has its headquarters in Chennai, India. They have created active packaging sachets that through plant extracts trigger defense in fruits and vegetables to increase their shelf life during storage and transport.
Some of its goals are thus intended to reduce post-harvest losses to a level that is in the interest of farmers and consumers. Currently, GreenPod Labs works with 21 employees, and it is expected that by October 2024, it will become 25 employees. It has conducted funding for the five rounds where the latest seed round was conducted in April 2023 and the total money it has raised is $680000.
Services Provided:
- Biodegradable packaging solutions
- Shelf-life extension technology for fruits and vegetables
- Post-harvest loss reduction strategies
Contact Details:
- Address: 4/222, Mangalapuram, Sidco Industrial Estate, Ambattur, Chennai, Tamil Nadu 600098
- Website: www.greenpodlabs.com
- Phone Number: Unavailable
8. Mind and Mom
Founded: 2021
Industry: Healthcare
Number of Employees: Approximately 10-50
AMind & Mom was launched in June 2021 and is an Indian deep-tech start-up that offers women’s health and fertility technology solutions. By adopting and implementing these technological approaches, data science and artificial intelligence, as well as behavior science, have helped over 200,000 women in their fertility trips. They also have an extensive number of services in the sphere of fertility and pregnancy, such as the calculator of ovulation and the tracking of maternity health which can be helpful for a couple.
The company was founded by Padmini Janaki, a technologist who turned femtech entrepreneur after 12 years of work, and Dr. Vinayak Smith, a physician-scientist, and head of new ventures at Virtus Health. The goal of Mind & Momma is to make fertility possible for everyone out there, who decides to have a baby.
Services Provided:
- Maternal health monitoring
- Pregnancy wellness programs
- Digital health tracking and guidance
Contact Details:
- Address: 23, Ground floor, 1st Cross Road, Ramappa Nagar, Kandhanchavadi, Perungudi, Chennai, Tamil Nadu 600096
Website: www.mindandmom.com - Phone Number: 089392 31085
9. Kaleidofin
Founded: 2017
Industry: Financial Services
Number of Employees: approximately 101-250
Kaleidofin was founded in 2017 and has its headquarters in Chennai, India, and is a Fintech platform that aspires to bring everyone – especially underserved women – into the mainstream economy. Kaleidofin empowers clients with goal-based financial services using advanced machine learning and suitability engines at every life stage. Their solutions are well aligned with platform partners such as the banks, MFIs, NBFCs, and corporations to be accessible; and yet, can reach the customers through assisted onboarding methods.
By September 2024, Kaleido-fin had enabled more than $2.7 billion and served over 4.7 million customers and SMEs in the Indian informal economy. It is important to acknowledge that the company has been certified as the Great Place to Work, which evidences the company’s concern in creating a healthy workplace.
Services Provided:
- Goal-Based Financial Planning
- Savings Solutions
- Credit Access
- Insurance Products
- Digital Financial Services
Contact Details:
- Address: Block A, Phase II, Module A6-02 6th Floor, 1, MGR Film City Road, Kanagam, Tharamani, Chennai, Tamil Nadu 600113
- Website: www.kaleidofin.com
- Phone Number: 073580 71412
10. Netmeds
Founded: 2010
Industry: Speciality Retail
Number of Employees: Approximately 500-1000
Netmeds, which started its operation in 2010, is an Indian online store owned by Pradeep Dadha that deals in prescription medicines, over-the-counter products and wellness products. Netmeds is a venture of Dadha & Company, India’s oldest and most reputable pharmacy that has been in business for more than a century The main vision of Netmeds is to make all healthcare products easy to get and affordable for everyone in India.
In 2020, Reliance Industries bought 60% of Netmeds for ₹620 crore according to which it is targeted to be worth ₹1000 crore. The vision for Netmeds is to address the common health issue of rising chronic diseases by making medicine affordable and available across the country.
Services Provided:
- Online pharmacy services
- Home delivery of medicines
- Health consultations
Contact Details:
- Address: 5th Floor, EA Chambers (Express Avenue) No 49 & 50 L, Whites Road, Royapettah, Chennai, Tamil Nadu 600014
Website: www.netmeds.com - Phone Number: 072007 12345
11. Vivriti Capital
Founded: 2017
Industry: Financial Services
Number of Employees: Approximately 251–500 employees
Vivriti Capital, started in 2017 is an NBFC focused on the mid-market segment extending debt capital to enterprising businesses in India. Vivriti solves this problem with technology and provides term loans, working capital financing, and supply chain finance specifically for small businesses that can’t access such services from traditional banks.
By the end of September 2024, it will have an asset under management (AUM) of around ₹6,000 crore for over 250 mid-cap businesses from different industries. Through the provision of quality credit and value-added financial services, Vivriti Capital aims to assist these enterprises achieve their growth and change agenda.
Services Provided:
- Term Loans
- Working Capital Demand Loans
- Supply Chain Finance
- Co-Lending
- Securitization
- Non-Convertible Debentures (NCDs)
Contact Details:
- Address: Prestige Zackria Metropolitan, No.200/1-8, 2nd Floor, Block 1, Anna Salai, Chennai, Tamil Nadu 600002
- Website: www.vivriticapital.com
- Phone Number: 044 4007 4800
12. Sahaj Software
Founded: 2014
Industry: IT consulting and outsourcing
Number of Employees: Approximately 200-500
Founded in 2014, Sahaj Software Solutions is a craft-based software engineering company serving AI and data science, platform, and data engineering with MLOps. Since then they have concentrated on reinventing corporate through software engineering with artificial intelligence and machine learning.
Sahaj Software Solution Inc. has offices in the USA and facilities in India. In America, it runs under the name Sahaj Software Inc., and the company was officially registered on September 2, 2022. Based on the Annual Report up to November 2022, Sahaj Software Solutions had around 259 working staff. Thus, it is evident there are startup IT companies for freshers in Chennai.
Services Provided:
- Data analytics and AI solutions
- Cloud-based software development
- Enterprise IT solutions
Contact Details:
- Address: 2nd Floor, Origin Towers, Type 2/13, Rajiv Gandhi IT Expy, Phase 1, Vikram Sarabhai Instronics Estate, Thiruvanmiyur, Chennai, Tamil Nadu 600041
- Website: www.sahaj.ai
- Phone Number: 044 6575 5511
13. Bank Bazaar
Founded: 2008
Industry: Financial Services
Number of Employees: approximately 680-1000 employees
BankBazaar was launched in 2008 by Adhil Shetty, Arjun Shetty and Rati Shetty and is located in Chennai, Tamil Nadu, India. It works as an e-commerce portal where customers can directly compare and try to get different financial products including personal loans, home loans, credit cards, insurance policies etc.
It is a money management website that provides free credit score tracking and other financial services, to help the consumer manage their money as easily and quickly as possible. By October in the year of 2024, BankBazaar plans to employ about 887 staff members. Used For BankBazaar, the mission of its service is to make credit and financial products easily accessible to people in India.
Services Provided:
- Credit Card Issuance
- Credit Score Access
- Loan Comparisons
- Insurance Products
- Financial Education
Contact Details:
- Address: Prince Info Park Tower 1, 2nd Main Road, Sai Nagar, Ambattur Industrial Estate, Chennai, Tamil Nadu 600058
- Website: www.bankbazaar.com
- Phone Number: 044 4549 9902
14. Garuda Aerospace
Founded: 2015
Industry: Aerospace and Defence
Number of Employees: approximately 200 employees
Garuda Aerospace was established in 2015 and is currently an Indian drone technology organization that provides modern drone form of solutions to different sectors. This is done through drone manufacturing, aerial surveys and mapping, inspections, agriculture such as spraying and herding, and in defense. Some of the services include crop monitoring, pest control, asset inspections, etc with artificial intelligence and machine learning for analysis.
Garuda Aerospace is involved in drone manufacturing, sales, and leasing and also provides drone training and certification. The company was established in Chennai Tamil Nadu with broad coverage within the country. Based on market research, Garuda plays a significant role in operating in a burgeoning drone market as a service provider for government and private entities and for supporting agricultural industries.
Services Provided:
- Precision Agriculture
- Industrial Inspections
- Mapping and Surveying
- Disaster Management
- Defense and Surveillance
- Training and Certification
- Drone as a Service (DaaS)
Contact Details:
- Address: 24, 46, KB Dasan Road, Seetammal Colony, Seethammal Colony, Lubdhi Colony, Alwarpet, Chennai, Tamil Nadu 600018
- Website: www.garudaaerospace.com
- Phone Number: 095000 88664
15. Yubi (Formerly CredAvenue)
Founded: 2020
Industry: Financial Services
Number of Employees: Approximately 500-1000
Formerly known as CredAvenue, Yubiis a fintech startup founded in 2020 by Gaurav Kumar. It provides an online marketplace for borrowers to interact with more than 750 different lenders and investors to help businesses source capital.
Yubi offers corporate lending, supply chain finance, co-lending operated with enterprises, banks, NBFCs, and fintechs besides securitization. Amalgamated today in Chennai, Tamil Nadu, the company had about 450 employees as of 2022. Consequently, Yubi’s mission is to recast global debt markets as a means of improving finance flow between debt issuers, investors, and borrowers.
Services Provided:
- Debt marketplace platform
- Structured credit solutions
- Loan lifecycle management
Contact Details:
- Address: 12th floor, A-Wing, Prestige Polygon, 471, Anna Salai, Rathna Nagar, Nandanam, Chennai, Tamil Nadu 600035
- Website: www.go-yubi.com
- Phone Number: 077768 81928
Challenges and Opportunities to startup a business in Chennai
Challenges
1. Talent Retention: Chennai has a good enough talent pool starting with engineering colleges but retaining them is hard because of competition from firms located in Bengaluru and Hyderabad primarily in tech and startup space.
2. Access to Funding: Even though Chennai has been observing growth in venture capital investments, the startups continue to have a problem with sourcing the appropriate level of funds required for their business, especially for the earlier stages of the startups. The survey indicates that investors may stake in firms within more developed ecosystems, such as Bengaluru and Mumbai.
3. Regulatory Hurdles: Though the factor of ease of doing business has emerged as a strong factor of doing business in India and Chennai, in particular, the bureaucratic hurdles and regulatory frameworks slow down and complicate the process for startups in Chennai, as it is throughout India. It becomes difficult for new business people to know which law applies to their taxation, employment and other legal aspects.
4. Market Competition: The opportunities for a startup in Chennai are increasing daily, but so is the competition. New entrants in particular have to reinvent themselves constantly in the battle for attention in an oversaturated market space whether it is in fintech or e-commerce.
5. Infrastructure Gaps: However, some of the city areas still lack fairly reasonable infrastructure, for instance, an unstable connection, transportation problems, and few good modern coworking spaces in certain parts of Chennai, even though it is a powerhouse for manufacturing.
Opportunities
1. Access to Emerging Markets: The fact is, Chennai is in close position to the major regional markets in South India hence, startups stand a good chance to get the market to target especially retail, health care and logistics markets.
2. Sectoral Growth: Chennai has several startup high-growth domains, such as fintech, health tech, edtech, and space tech. These areas are becoming more innovative in the city, creating great growth prospects for new ventures.
3. Government Support: The Tamil Nadu government proposes some incentives for start-ups including the Tamil Nadu Startup Policy, tax exemptions, subsidies and incubation. The resources above help new ventures obtain the key resources required for scaling at the right time.
4. Strategic Location for Manufacturing and Supply Chain: Chennai has a robust industrial background, and the firms related to manufacturing, logistics, and supply chain start-ups can take advantage of the necessary infrastructure like the availability of skilled labor and manufacturing experience.
5. Digital Transformation: Thus, the focus of Chennai-based startups is that, with the rapidly developing digital economy in India, they could take advantage of the increased demand for e-commerce, fintech and digital services, both for local customers and for the entire country.
Final thoughts
The city of Chennai has become one of the startup capitals of India due to the availability of talented human resources, its location and the ever-developing startup culture. IIT Madras and other such educational institutions coming up in the city assure a pool of skilled workforce which hopefully would fuel innovation across industries. Being located in south India, Chennai appears to be the right place for logistic-based industries, manufacturing industries and industries with a lot of technical support thus helping the startups to serve both the regional as well as international market.
The ecosystem also enjoys increasing numbers of incubators, accelerators and VC firms that surround budding businessmen and provide support. Some of the rapidly growing industries include Fintech, Healthcare, Space technology, and E-Commerce industries which have unique products and services offering mechanisms to target specific local issues while conforming to international market standards.
Chennai has a strong foundation, and with growing investments, governmental support, and partnership possibilities, the city is ready to become one of the major pioneers of innovation and successful startups forging through the global startup arena.
FAQs
1. Why are startups emerging in Chennai?
The population of startups in Chennai has grown because of the city’s robust industriality, the availability of a qualified employee, convenient location, and support for relevant structures and certain government programs such as incubators and accelerators. Another reason relates to the concentration of certain skills in the city and the presence of sectors such as fintech healthcare and manufacturing to attract business people and investors.
2. Which industry sectors are prominent in Chennai-based startups?
The startups formed in Chennai are specializing in fintech, healthcare, space, manufacturing, e-commerce, logistics, and eds-tech sectors. Thanks to the city’s industrial focus and IT advancements these sectors have developed.
3. How are the startups in Chennai positioned for support?
Chennai-based startups have several Government policies and schemes at their disposal such as the Tamil Nadu Startup and Innovation Policy 2015, grants, tax incentives and incubation. Further, there are other sources such as TIDCO, Chennai Angels, and IIT Madras Research Park offer funding support, hand-holding, and networking sessions.
4. What problems can be identified among startups operating in Chennai?
Challenges here for Chennai-based startups: Talent wars, early-stage funding crunch with a lot of startups bored to mid to late stage, regulatory constraints, and infrastructure constraints in some fields.
5. Where does Chennai stand in this startup structure of India in terms of other Indian cities?
Chennai seems superior with its industrial background, low cost and developing ecosystem. Hence while Bengaluru is dominating tech startup and Hyderabad in e-commerce, Chennai is progressing towards manufacturing, fintech and space tech among others.
