(*3*)According to DPIIT, India had over 1.12 lakh recognised startups and 111 unicorns with a web valuation of $349.67 billion across 763 districts in the nation as of October 3, 2023. (Representational picture/Shutterstock)
‘Small Towns, Big Ideas: The Rise of Innovation and Entrepreneurship in India’s Tier II and Tier III Cities’, the survey report by Primus Partners, discovered that 64% of surveyed traders have chosen to fund expertise-primarily based companies, indicating a powerful want for innovation pushed by expertise
India is presently dwelling to the third-largest startup ecosystem in the world as a result of rising investments in tier 2 and tier 3 cities in latest years. A survey by Primus Partners, a Delhi-based famend administration consulting companies supplier, reported that about 44% of home traders across 30 domains, together with IT, meals, and agriculture, have targeted on startups in these cities.
The State Startup Ranking 2022, launched by the Department for Promotion of Industry and Internal Trade (DPIIT), reveals that the enlargement of tier 2 and tier 3 metropolis startups in the end helps India’s financial development.
According to DPIIT, India had over 1.12 lakh recognised startups and 111 unicorns with a web valuation of $349.67 billion across 763 districts in the nation as of October 3, 2023. Invest India, the National Investment Promotion and Facilitation Agency, estimates that Indian entrepreneurs are focusing on 56 completely different industrial sectors, together with 13% in IT companies, 9% in healthcare and life sciences, 7% in schooling, 5% in agriculture, and 5% in meals and drinks, respectively.
“Small Towns, Big Ideas: The Rise of Innovation and Entrepreneurship in India’s Tier II and Tier III Cities”, the survey report by Primus Partners, discovered that 64% of surveyed traders have chosen to fund expertise-primarily based companies, indicating a powerful want for innovation pushed by expertise.
In addition, 23% of traders have chosen to again non-tech corporations, demonstrating a effectively-rounded funding portfolio that goes past expertise. Notably, 13% of traders have given particular consideration to startups with a social affect emphasis, demonstrating their dedication to initiatives that sort out pressing societal points. 41% of surveyed traders in the report are related to both a Fund of Funds (FoF) or an Alternative Investment Fund (AIF).
So why are traders transferring in the direction of tier 2 and tier 3 cities?
24% of surveyed traders reported receiving networking assist, highlighting the significance of relationships in navigating the tough atmosphere of investments. Also, tax financial savings are a supply of satisfaction for 19% of traders, demonstrating the beneficial fiscal incentives that make investing in startups interesting.
In addition to the monetary good points, the remaining traders have benefited from elevated visibility, which provides to the wide selection of benefits that traders obtain after they work with startups in tier 2 and tier 3 places.
Charu Malhotra, co-founder and managing director of Primus Partners, stated, “The growth of tier 2 cities signifies a broader economic and infrastructural transformation. Despite grappling with issues like infrastructure gaps, funding constraints, and talent shortages, the resilience of these startups points to factors like skilled talent, cost-effective operations, and favourable government policies that have been contributing to their growth.”
Moreover, she stated, the perception that 65% of startup founders accomplished their schooling in tier 2 and tier 3 cities emphasises the symbiotic relationship between schooling, geographical roots, and entrepreneurial selections. “This nuanced interplay sheds light on the larger narrative of regional economic development, underscoring the need for targeted policies that foster innovation and entrepreneurship in emerging urban hubs,” Malhotra added.
