17 Startups from Tier 2 Cities Secured Government Grants and Investments | Economic Update - Tech Digital Minds
In a remarkable showcase of entrepreneurship and innovation, the Department of Science and Technology (DST) has reaffirmed its commitment to nurturing Indian startups. Twelve startups have recently secured grant agreements totaling Rs 50 lakh at an event held in Tamil Nadu. This initiative is a testament to the growing potential of startups situated in tier-2 cities across India.
The spotlight shone brightly on the Sona Inclusive Technology Business Incubator (i-TBI), which operates under the auspices of the DST. At the recent ‘Think Salem 2025’ startup conclave, these promising startups received financial backing through grants under the DST–NIDHI initiative aimed at propelling their business ideas into successful ventures.
Furthermore, the Startup India Seed Fund, managed by Sona Incubations, invested an additional Rs 60 lakh in five of these innovative startups. This dual approach of grants and investments highlights the robust support system available to budding entrepreneurs in India.
The ventures incubated at Salem exemplify a diverse array of industries, particularly in healthcare, mobility platforms, sustainability, drones, food innovation, and applied deep-tech. This eclectic mix underscores the growing maturity of the startup ecosystem in Salem, establishing it as a significant player in India’s innovation landscape.
NervePro, a cutting-edge healthcare deep-tech startup, leads the charge with its affordable, portable nerve-monitoring system. This groundbreaking technology is designed to safeguard facial nerves during high-risk ENT and skull-base surgeries, and it has successfully completed a proof-of-concept validation study.
In the realm of energy efficiency, IswiftPro–Min-Sakthi stands out with its IoT- and AI-enabled solution that digitizes appliance-level energy consumption. This innovative approach allows for accurate forecasting, smart billing, and overall energy efficiency in both households and institutions.
DroneTribes, another notable player from Salem, has made strides with its indigenous drone designs tailored for agriculture, security, and training applications. With prototypes in the field and ongoing deployments, it has already reached Technology Readiness Level (TRL) 6, showcasing a strong operational capability.
Meanwhile, Cabocab, based in Kanyakumari, is redefining last-mile connectivity with its ride-hailing platform. Serving Tier-3 cities, Cabocab boasts a TRL of 9 and emphasizes faster, more efficient commutes outside metropolitan areas.
Dr. S. R.R. Senthilkumar, Executive Chair of Sona Incubations, highlighted that the startups selected for the Rs 60 lakh grant include innovative solutions for diaper waste management, millet-based food products, and immersive learning in ed-tech. This affirmation of diverse problem-solving capacities showcases the abundance of creativity emerging from these regions.
Dr. T. S. Rao, a Senior Advisor (Retd.) at the Union Department of Biotechnology, echoed the importance of transforming innovative ideas into public utility: “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 hail from various cities, including Salem, Coimbatore, Madurai, Tirupur, Trichy, Hosur, Kanyakumari, and Hyderabad. Their Technology Readiness Levels range from early proof-of-concept to advanced prototype validation, representing a rich tapestry of entrepreneurial talent.
Sivakumar Palanisamy, Vice President and Chief of Staff of StartupTN, emphasized the potential of startups to redefine problems and personalize solutions. He noted, “AI will move into everyday life. The future belongs to startups that redesign problems, personalize solutions and build skills—not those chasing big-city addresses.”
The vibrancy of the startup ecosystem in tier-2 cities, particularly in Tamil Nadu, reinforces the notion that innovation knows no geographic boundaries. As these startups continue to evolve, they not only contribute to local economies but also play a vital role in shaping India’s overall economic landscape.
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