Tamil Nadu is taking a sharper bet on deeptech and advanced manufacturing, with Tamil Nadu Industrial Development Corporation (TIDCO) set to invest ₹25 crore each in Agnikul Cosmos and Raptee Energy.

These are the first investments under the state’s Startup Investment Policy 2025, marking an important step in Tamil Nadu’s effort to support technology-led startups that need patient capital and long-term backing.

The approval letters were handed over on March 14, signalling the government’s intention to play a more active role in helping promising startups grow in sectors where funding can often be difficult in the early stages.

The policy is aimed at supporting startups in high-growth and capital-intensive sectors, especially areas like deeptech and advanced manufacturing, where companies often face long development cycles before reaching commercial scale.

Tamil Nadu’s broader goal is to encourage growth in sunrise sectors such as electric vehicles, aerospace and defence, renewable energy, semiconductors, artificial intelligence, blockchain, and quantum computing. Industry Minister TRB Rajaa has said the idea is not just to provide capital, but also to help startups with strategic support and scaling opportunities.

The two companies selected for the first round reflect that focus clearly.

Agnikul Cosmos, founded in 2017, is one of India’s most closely watched spacetech startups. The company is developing small-lift launch vehicles, and its flagship rocket Agnibaan is designed to carry payloads of up to 300 kg to low Earth orbit. Agnikul has also drawn attention for Agnilet, described as the world’s first single-piece 3D-printed semi-cryogenic rocket engine. Its selection under the policy shows Tamil Nadu’s interest in building a stronger presence in the private space sector.

Raptee Energy, founded in 2021, represents the state’s push in electric mobility. The company operates in the premium electric motorcycle segment and sells its T30 model at around ₹2.4 lakh (ex-showroom). It also runs a 4.5-acre manufacturing facility in Chennai with an annual production capacity of 1 lakh units, showing its ambition to scale in the EV market.

The timing of these investments is also notable. India’s deeptech ecosystem has been gaining momentum, with growing investor interest and stronger policy support. Government and industry initiatives are increasingly recognising that innovation-led sectors need sustained backing because of their heavy research and development costs and longer gestation periods.

TIDCO’s move sends a clear message that Tamil Nadu wants to be more than just a manufacturing base. The state is positioning itself as a serious hub for next-generation technology, product innovation, and advanced industry.

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By backing companies like Agnikul and Raptee, the government is not only supporting two startups, but also signalling confidence in the larger ecosystem of founders working on difficult, high-impact technologies.

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