GrantStartupTN, Dept. of Micro, Small and Medium Enterprises, Govt. of Tamil NaduVerified 25 May 2026Official source

TANSEED — Tamil Nadu Startup Seed Fund Grant

Seed fund grant of up to ₹50 Lakhs for DPIIT-recognised Tamil Nadu startups, administered by StartupTN through empanelled incubators. In return for the grant, StartupTN acquires a nominal 3% equity stake or an equivalent 0.5% royalty on revenue for a fixed term — making it a quasi-equity instrument rather than a pure grant. Access is exclusively through StartupTN's empanelled incubator network; direct applications are not accepted. The incubator mentors the startup, supervises milestone delivery, and channels the funds. Private Limited companies only.

Maximum amount
₹50.0L
Typical payout
₹25.0L
Processing time
16–36 weeks
Application window
Applications accepted through empanelled incubators on a rolling basis; cohort selection cycles vary by incubator.

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Eligibility criteria

Company type
Private Limited
Stage
Idea Stage, Pre-Revenue, Early Stage (Revenue < ₹1Cr)
States
Tamil Nadu
Sectors
ai, saas, fintech, healthtech, agritech, edtech, cleantech, iot, deep_tech, biotech, other, Food Processing
Prerequisites
  • DPIIT Startup India recognition required

Documents required

1
DPIIT Recognition Certificate
Valid DPIIT Certificate of Recognition from the Startup India portal. Mandatory for TANSEED — StartupTN cross-verifies recognition currency and active Tamil Nadu state selection during incubator screening.
Tip: Download from startupindia.gov.in → Dashboard. Check expiry date before incubator submission — lapsed recognition automatically disqualifies the application. Renewal at startupindia.gov.in takes 5–10 business days.
2
Entity Incorporation Certificate
MCA-issued Certificate of Incorporation confirming the startup is registered as a Private Limited company. LLPs and OPCs are not eligible for TANSEED — only Pvt Ltd.
Tip: Verify the company is classified as 'Private Limited' on MCA21. The Tamil Nadu registered address is preferred but not strictly mandatory if the startup has demonstrable operations in Tamil Nadu.
3
Aadhaar Card (All Founders/Directors)
Aadhaar cards of all founders and directors for KYC verification. StartupTN and the incubator use this for background checks and for establishing that founders are Indian residents.
Tip: Self-attested copies accepted. All directors listed on MCA21 must submit Aadhaar — an incomplete set delays the process.
4
PAN Card (Entity)
Entity PAN card of the Pvt Ltd startup for financial identity verification and for structuring the equity/royalty arrangement with StartupTN.
Tip: Entity PAN, not founder's personal PAN. The entity name on PAN must match MCA21 records exactly.
5
Pitch Deck
10–15 slide deck covering the problem, solution, technology approach, market size, business model, traction to date, 12-month product and revenue milestones, and team background. Primary shortlisting document for incubator evaluation.
Tip: TANSEED-empanelled incubators receive many applications — lead with a crisp problem statement backed by market data in the first 3 slides. Quantify the Tamil Nadu market opportunity where possible; local impact is rated highly in incubator scoring.
6
Detailed Project Report / Business Plan
Written document detailing the technology approach, PoC or prototype plan, go-to-market strategy, milestone-linked deployment plan for the ₹50L fund, and a 3-year financial model.
Tip: Since TANSEED is milestone-linked, design your milestones to be measurable and verifiable by the incubator — revenue targets, user count, prototype completion, or IP filing dates. Vague milestones lead to tranche delays.
7
Memorandum & Articles of Association
MoA and AoA of the Pvt Ltd startup confirming the authorised share capital and permitted business objects. Required by StartupTN to structure the 3% equity acquisition agreement.
Tip: Ensure the business objects in MoA cover the startup's actual business activity. Narrow or outdated objects may require an EGM and MCA filing before TANSEED equity can be issued — start this early.
8
Shareholding Pattern
Current shareholding pattern confirming existing shareholders and their percentages, as StartupTN takes a 3% equity stake. Incubator and StartupTN must confirm that post-investment cap table is clean and that anti-dilution provisions are in place.
Tip: Submit the latest Form MGT-7A or a CA-certified shareholding table. Disclose all existing investor agreements — undisclosed investor rights that conflict with StartupTN equity terms are a common cause of deal failure.
9
Bank Account Details
Cancelled cheque or passbook copy of the startup's current account for milestone-linked fund disbursement from the incubator.
Tip: The account must be in the Pvt Ltd entity's name. Incubator-managed accounts for student or early-stage teams are not accepted — open a separate company current account before applying.
10
Incubator Acceptance / Empanelment Letter
Letter from a StartupTN-empanelled incubator confirming they have reviewed the startup's application and are nominating it for TANSEED consideration. StartupTN does not process applications without an incubator endorsement.
Tip: The incubator endorsement is the single most important document in the TANSEED process — invest time in finding the right incubator for your sector. IITM Research Park, SIPCOT-IT Park incubators, and Villgro are among the stronger TANSEED-channel incubators.

How to apply for TANSEED

1
Identify a StartupTN-empanelled incubator aligned with your sector from the list at startuptn.in — make contact early as incubators run their own selection processes before nominating startups to StartupTN.Open portal
2
Apply to the incubator with your pitch deck, business plan, and entity documents. The incubator evaluates innovation depth, commercial viability, team, and fit with their portfolio before nominating to StartupTN.
3
Incubator nominates shortlisted startups to StartupTN with an endorsement letter. StartupTN's Investment Committee reviews and approves TANSEED funding for nominated startups (4–8 weeks).
4
StartupTN executes a TANSEED Agreement with the startup covering fund amount, milestone schedule, and equity (3%) or royalty (0.5%) acquisition terms. Sign the shareholders' agreement and equity allotment documents.
5
Incubator disburses the first fund tranche (typically 40–50%) immediately after agreement signing. Subsequent tranches are released on milestone completion certified by the incubator.
6
File utilisation certificates and milestone completion reports with the incubator for each tranche. StartupTN conducts periodic portfolio reviews — maintain open communication with the incubator.

Frequently asked questions

Who is eligible for TANSEED?

TANSEED is available to Private Limited companies at the Idea Stage, Pre-Revenue, Early Stage (Revenue < ₹1Cr) stage, across Tamil Nadu. DPIIT Startup India recognition is mandatory.

How much funding does TANSEED provide?

TANSEED provides up to ₹50.0L. Most applicants receive around ₹25.0L.

How long does TANSEED approval take?

The typical processing time from submission to disbursement is 16–36 weeks.

Is TANSEED currently accepting applications?

Yes, TANSEED is currently active and accepting applications. Application window: Applications accepted through empanelled incubators on a rolling basis; cohort selection cycles vary by incubator..

Do I need DPIIT recognition to apply for TANSEED?

Yes, DPIIT Startup India recognition is mandatory. Register at startupindia.gov.in before applying for TANSEED.

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Information is based on publicly available scheme guidelines. Last verified 25 May 2026. Always verify with official sources before applying.