There is number that needs to be brought to your attention, the reason we are talking about Coimbatore. After 2020, there has been a 498% rise in the
registered startups in Coimbatore! The city went from just 271 registered startups in 2020 to 1350 startups by 2024 (source).
The Coimbatore startup ecosystem is rising as another Silicon Valley, but what makes this city special and why are startups flocking it?
In the blog, we will discuss the growth of the Coimbatore startup ecosystem and the top sectors with some thriving startup companies in Coimbatore.
The Growth of Coimbatore Startups
Coimbotre has always been a business centre. Since the 1920s, the city has witnessed industrial growth due to the textile industry. However, in recent
decades, we’ve seen am influx of startups, feeding an already growing startup ecosystem of Coimbatore. The development has resulted in the Coimbatore startup ecosystem becoming the 12th-best Ecosystem in India and the 15th-best in South Asia (source).
The following are a few reasons contributing to the growth of startup companies in Coimbatore.
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State Government Support
Tamil Nadu is an industrialized state, home to metro cities like Chennai and Coimbatore. Under the Startup Policy 2023, Tamil Nadu is establishing
incubators, targeted policies, supportive programs, providing funding & fundraising opportunities, and infrastructure to be in the top 20 global startup locations by 2032. They have established a StartupTN to support the MSMEs and startups.
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Industrial Growth of Coimbatore
Coimbatore has been an industrial area since before independence. Therefore, it has a supportive infrastructure, material availability, and the resources to support startups in diverse industries apart from textile and manufacturing.
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Availability of Skilled Workforce
Education has been the main focus of Coimbatore’s growth. It has become one of the top places to seek education in South India. Several educational institutions train students in medicine, engineering, architecture, art, and more. Therefore, Coimbatore startups have access to a skilled workforce to boost their growth.
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Low Cost of Living
The cost of living in major metro startup hubs like Bangalore and Chennai is pretty high, in comparison startups in Coimbatore enjoy a relatively lower cost of living and hence more profit, all the while enjoying a good lifestyle. Due to the development of industrial companies, jobs are abundant and the connectivity makes it easier to do business and find affordable living.
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Support for Early-stage Startups
Startup companies in Coimbatore can easily register with Startup India to get DPIIT recognition. This allows them to access the resources, funding, and tax benefits to grow their startups.
Tamil Nadu government launched various funding initiatives like TANSEED, TN SC/ST Startup Fund, Open Innovation Portal, and more. They also support innovative startups by setting up BrandLabs, Launchpad, S2Gs, and Centre of Innovations.
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Top Sectors for Startups in Coimbatore
Coimbatore is an industrial hub known as the ‘Manchester of South India’, because of the flourishing textile industry, especially cotton spinning. However, in recent decades, the focus on education and startup ecosystem has led to an influx of tech startups in Coimbatore. The following are the top sectors for startup companies in Coimbatore.
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IT Sector
The city’s engineering background makes it a hub for the IT sector. From multinational companies like Wipro, TCS, Cognizant, and Bosch Global Software Technologies to startups like Conversight, Applied Automation, Greenbotz Platform, and Linity, there are many rising tech startups in Coimbatore.
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Healthcare
The city provides access to advanced research centres to empower healthcare or health-tech startups. It makes healthcare accessible and advanced diagnosis possible in Coimbatore. A few well-known healthcare startups in Coimbatore are BeWell Digital and Doctor Oxy.
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Agriculture
One of the primary reasons Coimbatore is attractive for startups is the lower cost of living. Along with the lower real estate rates, an optimum vegetable supply chain contributes to a lower cost of living. Agritech startups in Coimbatore are thriving. Some successful agriculture-based Coimbatore startups are VilFresh, Green Collar, Farmagain, Lawrencedale Agro Processing, and Nanoventions.
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Renewable Energy
With the support of the Central and State governments, there has been a boost in the number of green energy startups in Coimbatore. These startups
contribute to saving our natural resources by turning to renewable energy sources. A few prominent greentech startups are Ezon Energy, Leap Green
Energy, and RapidEVChargE.
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Conclusion
The Coimbatore startup ecosystem is one of the fastest-growing ones in India. Government policies and programs are major contributors to the growth of the Coimbatore startups. The low cost of living, abundant skilled workforce, and the industrial infrastructure are like a boon to the Coimbatore tech startups.
The IT sector, Healthcare, Agriculture, and Renewable energy are a few thriving sectors in the Coimbatore startup Ecosystem. Explore more trends and opportunities in the startup ecosystem by attending our Global Startup Summit!
FAQs
1. How is the Coimbatore startup ecosystem?
Coimbatore startup ecosystem is a fast-growing ecosystem focusing on technology, from government support in the form of funds, research
infrastructure, and educational support. The strong industrial roots make Coimbatore an attraction for startups, especially tech startups. The low cost of living and skilled workforce are among the strengths of the Coimbatore startup ecosystem. It has been raised as an alternative southern startup hub with its connection to other cities.
2. How many startups are there in Coimbatore?
As per reports, by the end of 2024, there were more than 1350 registered startups in Coimbatore. In the past, registration and DPIIT recognition were
distant dreams for many startups. However, with the active government involvement and the growth of the startups, registration and recognition have become more manageable.
3. How do you secure funding for Coimbatore startups?
The Tamil Nadu government has made fundraising easier by establishing diverse funding programs under the StartupTN initiative. A few of these
initiatives are TANFUND to connect founders and funding agencies, TANSEED to support seed-stage startups, TN SC/ST Startup Fund for scheduled caste entrepreneurs, and Conventional Institutions Engagement for easy banking and loans. Incubators like Amrita TBI offer support and fundraising opportunities to startups.
4. What are the challenges faced by Coimbatore startups?
The existing industrial areas and the multinational companies create a highly competitive market for the Coimbatore startup. The limited funds, working capital, and raw materials also create a hurdle for the growing startup. While many fundraising opportunities exist, they need more sources to raise venture capital.
