How IIT Madras Incubation Cell is Powering India’s Next-Gen Deeptech Startups

Since its inception in 2013, the IIT Madras Incubation Cell has successfully incubated over 500 deeptech startups. Under the leadership of CEO Tamaswati Ghosh, the incubator has played a pivotal role in nurturing some of India’s most impactful ventures across various sectors including artificial intelligence (AI), quantum technology, fintech, e-mobility, and spacetech.

The Journey of IIT Madras Incubation Cell

Located at the IIT Madras Research Park in Chennai, the IIT Madras Incubation Cell was established to consolidate the innovative ideas and ventures scattered across the campus. Initially focused on IIT Madras students and faculty, the incubator has since attracted a diverse array of entrepreneurs from outside the IIT ecosystem. Currently, 61% of the founders associated with the incubator have no prior affiliation with any IIT in India.

Over the years, the IIT Madras Incubation Cell has emerged as a hotbed for deeptech innovation, fostering startups engaged in cutting-edge research and development across various fields:

• Robotics
• Artificial Intelligence
• Quantum Computing
• Fintech
• Sustainability
• E-Mobility
• Spacetech
• Defence

Impressive Achievements

The IIT Madras Incubation Cell boasts an impressive scorecard:

• 511 startups incubated
• Combined valuation of Rs 53,000 crore based on the latest investments raised by startups from venture funds
• Over Rs 17,300 crore in investor funding
• More than 700 patents filed
• Startups generating a combined revenue of Rs 4,000 crore for FY23-24
• Creation of over 11,000 direct jobs

Behind the Numbers: Insights from Tamaswati Ghosh

Tamaswati Ghosh, who has been associated with the incubation cell since its inception, shared insights into the journey of the incubator. She noted that when the cell was launched in 2013, there was a lack of structured pathways to commercialize intellectual property developed within the labs. The initiative was led by faculty members, including Professor Ashok Jhunjhunwala and former IIT Madras director Bhaskar Ramamurthi, who recognized the need for a dedicated incubator.

Initially focused on supporting students and faculty in launching their ventures, the incubator quickly expanded its reach to include external entrepreneurs. Ghosh explained, “The whole IIT brand was attracting external entrepreneurs and people from the industry who had ideas and wanted to work with the faculty here.” The primary criterion for incubation is that deeptech must be the foundation of the venture, leveraging IIT Madras’s technological expertise and innovation labs.

Encouraging Entrepreneurship Among Students and Faculty

Over the past decade, there has been a noticeable increase in the number of students choosing to become entrepreneurs rather than pursuing traditional job paths. Many alumni, after gaining industry experience, have returned to start their own ventures. Ghosh highlighted that this trend is beneficial for India, as it indicates a reduction in brain drain.

Furthermore, a significant number of faculty members at IIT Madras are also becoming entrepreneurs. Currently, around 18% of the faculty population are founders or minority shareholders in startups, which is the largest proportion among institutions in the country. Ghosh remarked, “Professors are involved not just as advisors or mentors; they also have a stake in the company. Their deep involvement makes a huge difference in the early days of the startup.”

Evaluating Startups for Incubation

The process of selecting startups for incubation at the IIT Madras Incubation Cell is designed to be inclusive. Ghosh explained that while business viability is important, the primary focus is on the commitment of the founders. “We are not very strict in terms of business model. What we really look for is the founder’s commitment: are they here for the long run, do they understand what they are getting into?”

Startups can apply for incubation through a simple process, either by writing in or walking in. The evaluation occurs at multiple levels, focusing on the founders’ ability to take inputs from the ecosystem and build a sustainable business. The innovation itself is also assessed to determine if the IIT Madras ecosystem can add value to it.

Notable Startups from the Incubation Cell

Several notable startups have emerged from the IIT Madras Incubation Cell, including:

• Ather Energy: The first IPO from the incubator’s portfolio.
• Uniphore: The first unicorn from the portfolio, specializing in enterprise AI.
• MediBuddy: India’s largest digital healthcare platform.
• ePlane: Developing India’s first flying electric plane.

Conclusion

The IIT Madras Incubation Cell has established itself as a cornerstone of innovation in India, fostering a vibrant ecosystem for deeptech startups. With its strong institutional support, commitment to nurturing talent, and focus on impactful ventures, the incubator is poised to continue shaping the future of technology in India.

Note: The information presented in this article is based on data available up to October 2023 and may be subject to change.