From Tier 2 to Trailblazer: The Rise of India’s Next Startup Powerhouses

For years, India’s startup narrative was dominated by the golden trio — Bengaluru, Mumbai, and Delhi NCR. These metros became synonymous with unicorn stories, VC dollars, and tech innovation. But quietly and steadily, a silent revolution has been brewing across India’s Tier 2 cities.

From Jaipur to Jodhpur, Indore to Kanpur, Udaipur to Bhubaneswar, a new generation of founders is rising — one that is building from smaller towns but thinking globally. These entrepreneurs are defying the traditional path, showing that big ideas don’t need big-city backdrops to thrive. Welcome to the age of Tier 2 Startups — India’s next wave of innovation.

Why Tier 2 Cities Are Becoming Startup Epicenters

Several factors are converging to shift India’s innovation focus beyond the metros:

1. Lower Operational Costs

Tier 2 cities offer significant advantages in terms of rent, salaries, and overall cost of living. This allows startups to extend their runway, hire affordably, and focus on sustainable growth without burning through capital.

2. Rising Talent from Local Institutions

With top-tier engineering and management colleges now spread across India, Tier 2 cities are home to a growing pool of capable, ambitious young professionals. Many are choosing to stay back and build where they belong.

3. Digital Infrastructure Penetration

Thanks to affordable mobile data and government-led digital inclusion programs, internet penetration is skyrocketing in Tier 2 and 3 regions — opening up new consumer markets and enabling digital-first business models.

4. State Government Support

States like Rajasthan, Madhya Pradesh, Odisha, and Gujarat are actively promoting entrepreneurship through startup policies, subsidies, incubation schemes, and dedicated platforms like iStart, Startup Odisha, and Startup Gujarat.

The Tier 2 Founder Mindset

What truly differentiates Tier 2 startups isn't just geography — it’s mindset.

• Purpose-led Products: Startups from smaller towns are often more grounded in solving hyperlocal, real-world problems.
• Frugal Innovation: With fewer resources, these startups are inherently lean and capital-efficient, focusing on profitability early.
• Resilience Over Hype: Many Tier 2 founders are building businesses that are built to last, not just to pitch.
• Customer Proximity: Operating in Tier 2 cities often places startups closer to their end-users, allowing for faster feedback loops and stronger product-market fit.

The Numbers Tell the Story

• Over 45% of DPIIT-recognized startups now emerge from Tier 2 & Tier 3 India.
• 60%+ of India’s youth population resides outside Tier 1 cities — a massive talent and consumer base.
• State programs like iStart Rajasthan have incubated 2500+ startups since inception.
• Investor interest is shifting: Angel networks and micro-VCs are actively scouting beyond metros for high-potential bets.

Case in Point: Rajasthan’s Stellar Startup Talent

Rajasthan, traditionally seen as a heritage and tourism-driven economy, is today home to high-growth startups across sectors:

• Agritech platforms helping farmers access supply chains and credit.
• D2C brands selling sustainable lifestyle products rooted in culture.
• Edtech ventures focused on skill development for Tier 2 and 3 youth.
• Industrial SaaS and EV startups coming from hubs like Jaipur, Kota, and Udaipur.

In recent years, Rajasthan has produced startups with scale, innovation, and real-world impact. A few examples:

• Getepay (Jaipur): The first company in Rajasthan to receive RBI authorization as a payments aggregator, Getepay empowers over 1.5 million merchants—including kirana stores, small manufacturers, and e‑commerce sellers—across tier‑2, tier‑3, and rural regions.
• MedCords (Kota): A healthtech platform serving rural communities, MedCords connects users in villages with doctors, digitizes medical records, and has reached 25 lakh+ users through partnerships with local pharmacies and 5,000+ doctors.
• EEKI Foods (Kota): Pioneers of hydroponic, pesticide‑free vegetable production using patented growing chambers, EEKI makes clean, nutritious produce affordable and scalable across Rajasthan and beyond.
• Hexpressions (Jaipur): Builders of affordable, eco‑friendly housing using recycled paper honeycomb panels—a solution that offers comparable strength to concrete at a fraction of the weight and cost. Featured on Shark Tank India.
• Jaipur Watch Company (Jaipur): India’s first homegrown luxury watch brand, known for embedding Indian art, vintage coins, and traditional motifs into high-end timepieces. A compelling example of creative product innovation outside metros.

Behind this surge is an ecosystem of accelerators, incubators, co-working hubs, and government schemes — all working together to make Rajasthan a serious player in India’s startup story.

InnovHer: Accelerating Tier 2 Dreams into Scalable Startups 

At InnovHer, we believe that innovation doesn’t need a metro address. Our accelerator is designed to suit entrepreneurs building from Rajasthan and other Tier 2 ecosystems—empowering them with structured mentorship, real-world guidance, and access to investor networks.

Key Support Pillars:

• Expert mentorship spanning GTM strategy, branding, fundraising, finance, and legal
• Live sessions, structured assignments, and pitch clinics tailored for early-stage founders
• Foundational outputs: validated business models, investor-ready pitch decks, GTM roadmap, and branding clarity
• Post-cohort network & resources: ongoing peer community, funding updates, and startup tools

Our model empowers ventures to scale from their home ecosystem—leveraging local insights and national standards to build scalable startups without relocation.

Why Showcase These Startups?

• Diverse Sectors: Payments (Getepay), healthcare (MedCords), agritech (EEKI), sustainable construction (Hexpressions), and luxury design (Jaipur Watch)
• Real-World Impact: From onboarding 1.5M merchants to reaching 25L users in underserved areas
• Innovation Edge: Bringing solutions that merge local insight with scalable tech

These startups exemplify the kind of enterprises InnovHer helps amplify—rooted in region, built for scale.

What’s Next for Tier 2 Startups?

India is at the cusp of a decentralized innovation era.

As the startup ecosystem matures, it’s clear that the next 100 high-impact ventures won’t just come from Koramangala or Lower Parel. They’ll emerge from Ujjain, Kota, Ajmer, Surat, and Siliguri.

These startups will:

• Create jobs locally
• Serve vernacular users
• Build for “Bharat” and the world
• Stay rooted while scaling globally

A Final Word

India’s startup future is Tier 2 powered.

The talent is here. The ambition is here. And with the right support systems, the success stories will be here too.

At InnovHer, we are not just witnesses to this shift — we are active enablers. We’re proud to back the builders, the risk-takers, and the community changemakers building from Tier 2 India.

If you’re one of them, your journey deserves to be accelerated.