Coimbatore: Traditionally known as an industrial and manufacturing centre, Coimbatore has evolved into a thriving startup hub. In 2020, the city had only 271 registered startups. But over the past four years, this number has surged to 1,350 across 52 sectors, including IT services, healthcare, agriculture, food, renewable energy, and aerospace and defence. Coimbatore now boasts 22 incubation centres, providing startups with guidance and financial support from both the Union and state govt programmes.
Across Tamil Nadu, approximately 10,000 startups are registered with the Department for Promotion of Industry and Internal Trade (DPIIT), which is under the ministry of commerce and industry. At least 15% of them are based in Coimbatore, placing the city 12th in the national startup rankings. Among tier-II cities, Coimbatore leads the list within the state.
One of the key reasons for the city's rise in the startup scene is the abundant availability of quality manpower. "The availability of highly skilled engineers and non-engineers provide the right launchpad for startups in Coimbatore," says K S Rathinasamy, co-founder and director of Enthu Tech, a Coimbatore-based startup.
Enthu Tech uses AI and IoT technology to create sustainable solutions for areas like cold chain, smart buildings, agriculture and industry.
According to Rajan Parasuraman, CEO, GyanMatrix, an EdTech startup in the city, the attrition rate is low in Coimbatore compared to the cities such as Chennai and Bengaluru. "Coimbatore offers quality talent at comparatively lower costs" he said. GyanMatrix offers an AI-driven platform designed to help students become job-ready as Fullstack developers.
While majority of startups work in the field of information technology, there are several working in sectors like healthcare and agriculture.
Officials attached to StartupTN, a state govt initiative, say many IT-based firms from Kerala, Chennai and Bengaluru are establishing startups in Coimbatore, thanks to its industrial ecosystem. "Under the Startup India initiative, eligible firms could receive DPIIT recognition as startups and benefit from tax benefits, simplified compliance and faster IPR processes," said a senior official with StartupTN, which was formed to boost the startups in Tamil Nadu.
Startup founders say the initiative has begun showing results. "A few years ago, startups faced significant challenges in finding mentorship and funding. Now, we have support for DPIIT registration, networking and access to investment opportunities," said a startup founder. StartupTN facilitates legal support too.
Investment from Indian and international venture capital firms, as well as from StartupTN flow into Coimbatore, a sign of the promising nature of the startups here. StartupTN has invested approximately RS8.75 crore in Coimbatore startups. In addition to govt funding, private investment is also available.
However, Rathinasamy noted that there are a few challenges, including limited direct flight connectivity to major cities and a shortage of coworking spaces.