Private Equity and Venture Capital (PE-VC) firms invested $421 million across 14 deals in companies based in Tamil Nadu during the fourth quarter of 2025, down by nearly 71% when compared to the previous quarter. During the third quarter of 2025, the State attracted investments to the tune of $1,461 million through 14 deals.
For the year 2025, PE-VC firms invested $3,513 million across 61 deals in Tamil Nadu-based firms, a 20% increase. In 2024, there were 57 deals with an investment of $2,927, according to the data shared by Venture Intelligence, a research service focused on private company financials, transactions, and their valuations. The data includes venture capital type investments but exclude PE investments in real estate.
Angel investments in Tamil Nadu-based companies remained muted, with the State recording 46 angel deals in 2025 — the same number as in 2024. “2025 mirrors 2024. The numbers are flat,” Arun Natarajan, Founder and Managing Director of Venture Intelligence said.
“Looking ahead to 2026, the stars seem to be aligning for a step up in DeepTech investing — including in AI/ML start-ups. The Government of India’s recently announced ₹1 lakh crore Research Development and Innovation (RDI) Fund has the potential to be a key catalyst on this front,” Mr. Natarajan said. Tamil Nadu has many DeepTech firms that will significantly benefit out of this, he added.
Another set of data, collated by YNOS Venture Engine and The Centre for Research on Start-ups at IIT-Madras, shows that during 2025, around 1,657 start-ups from the State obtained DPIIT recognition. The numbers showed that 973 start-ups were incorporated in 2025. “The landscape is changing in Tamil Nadu, in 2024 AI/ML was not in the top five, but now in 2025, it has come in the top five. Entrepreneurs are forming start-ups that are the need of the day,” said Thillai Rajan A, Head of Centre for Research on Start-ups and Risk Financing (CREST) and faculty member in the Department of Management Studies at IIT-Madras.
The Venture Intelligence data showed that at the national level, PE-VC firms invested $33 billion (across 1,164 deals) in Indian companies in 2025, almost exactly as that invested in 2024 (across 1,263 deals).
Published – January 02, 2026 12:46 am IST
