Agnikul Cosmos Private Limited, a spacetech startup incubated at the Indian Institute of Technology (IIT) Madras, has received approval for an equity investment of INR 250 million from the Tamil Nadu government through the Tamil Nadu Industrial Development Corporation (TIDCO). The investment forms part of the state’s TIDCO Startup Investment Policy 2025, which is intended to support deep-technology startups and expand advanced technology industries in Tamil Nadu.
The funding is expected to support Agnikul’s operational readiness and the expansion of its aerospace manufacturing capabilities. It will also contribute to the company’s rocket stage recovery programme and the development of an integrated space campus planned on a 300-acre site allocated by the Tamil Nadu government near Kulasekharapatnam.
“Humbled and honoured to have received an equity investment from the TN State Govt. Government of Tamil Nadu through TIDCO. This is a strong sign that the TN state Govt. is fully on-board for supporting original technology developed in this ecosystem,” said Srinath Ravichandran, Co-Founder and Chief Executive Officer of Agnikul Cosmos.
The TIDCO Startup Investment Policy 2025 marks a shift from the organisation’s historical joint sector investment model. Under the policy, TIDCO is authorised to invest up to INR 250 million in individual startups operating in sectors such as aerospace, defence, electric mobility, semiconductors, renewable energy, and deep technology areas including artificial intelligence and blockchain. The policy is designed to provide long-term capital support to companies as they scale from research and development to commercial production.
Between 14 and 16 March 2026, TIDCO announced its first major investments under the new policy. Alongside Agnikul Cosmos, the state agency approved an investment of INR 250 million in Raptee Energy Private Limited to support the expansion of production for electric motorcycles. The company plans to scale production to 1,500 units by the end of 2026.
TIDCO has historically invested in industrial projects through multiple equity participation models. These include joint sector investments involving 11 percent to 26 percent equity participation, associate sector investments ranging from two percent to 11 percent, and the newer venture catalyst model that allows direct investments of up to INR 250 million in startups. Previous joint sector projects include Titan Company Limited and TANFAC Industries Limited, while associate sector participation has included investments in projects involving companies such as JSW Steel Limited.
The organisation has also expanded partnerships to support industrial and technology development in the state. In January 2026, TIDCO signed a letter of intent with the University of Melbourne to establish a research centre at the Tamil Nadu Knowledge City focused on industrial-aligned curriculum and emerging technology skills. In July 2025, it partnered with the Ministry of Defence to set up a mechanical and material testing facility in Tamil Nadu under the Defence Testing Infrastructure Scheme (DTIS).
Agnikul Cosmos Private Limited develops launch vehicles and propulsion systems for small satellite missions. The company’s launch vehicle, Agnibaan, is designed to deploy small satellites into low-Earth orbit for commercial and research missions.
