While talking to entrepreneurs, one common theme that always comes up is the rising traction from tier II and tier III cities. These statements however cannot be backed by statistics, given the difficulty in mapping actual growth, which has been heterogeneous across all these cities.
Evidently, the tier II and tier III cities have nurtured a number of well known startups and have also showcased a plethora of innovations and skills. But a number of hurdles have led to the sluggish growth of the startup ecosystem, including the lack of a robust infrastructure and limited access and scope. These factors have also impacted the adaptability by the consumers, who still primarily prefer the conventional offline market.
“The ecosystem hasn’t evolved in these towns. There is no framework or support as of yet to organise, facilitate and usher in alternative capital for disruptive ideas. Stable utility is also one of the main concerns. However, these markets are ripe with opportunities, especially in e-commerce,” says Rana Dutta, founder of Kolkata-based healthcare startup Tiyo. Read More >>