For nearly two decades, India’s startup story has centred around three cities — Bengaluru, Delhi NCR, and Mumbai — which have concentrated most of the country’s capital, talent, and ambition. Together, they attracted the bulk of venture funding and became default launchpads for founders. In fact, according to Inc42’s Annual Indian Startup Trends Report 2025, Delhi leads the Indian ecosystem in producing the most listed technology startups. But, realities are changing now. Funding activity in the Mumbai & Delhi NCR regions slowed, with investments either falling or staying flat. Not just this, regions like Hyderabad, Pune and Jaipur are being seen as the upcoming startup hubs. According to Inc42’s investor survey, 2025, 45% of investors identified Hyderabad as the next major epicentre of India’s startup revolution, followed by Pune (20%) and Jaipur (10%). Further, more than 56% investors see tier II-III purchasing power as the next consumer growth engine. The Playbook For The New Startup Hubs Over the past few years, policy nudges, state-led startup missions, and infrastructure investments have started pushing entrepreneurial activity beyond the traditional metro cities. From Coimbatore and Indore to Jaipur and Kochi, tier II and III cities are no longer just talent back-offices. Lower operating… Read MoreInc42 Media
