[Startup Bharat] Are investors finally backing startups in smaller cities and towns?
Four months after we started YourStory?s Startup Bharat series, we take a look at whether or not ventures beyond the main startup hubs are attracting the type of investor backing they deserve.
- In the past five years, Indian startups have raised close to $44 billion across 3,712 deals.
- As the infographic below shows, the major shifts began from 2016, when startups in smaller cities raised $447.64 million across 63 deals.
- This year too, startups outside the major startup hubs have gotten off to a great start, having raised $165 million across 18 deals.
- "Whether it is the Blockchain and AI push in Kanpur or the Fintech Valley push in Vizag, the governments have ensured that startups become mainstream in India, even in the smaller towns," says Padmaja Rupel, President and Co-founder at IAN and Founding Partner at IAN Fund.
- Odisha-based dairy venture Milk Mantra raised $10 million Series D funding as far back as 2017.Value and scale matter the most Getting funding, however, is the second step.
- Founders in Tier II and III cities are aware of these challenges - of access, mentorship, and even funding.