50 pc of Indian startups emerging from Tier 2, 3 cities; women lead inclusive growth

New Delhi: Startups are increasingly bridging India’s rural-urban divide by deploying solutions across agri-tech, telemedicine, microfinance, tourism, and ed-tech, directly addressing developmental gaps and supporting rural livelihoods, an official statement said on Thursday, ahead of the National Startup Day.

Notably, women-led startups are emerging as a key driver of inclusive and regionally balanced growth, with more than 45 per cent of recognised startups having at least one-woman director/partner as of December 2025.

“This reflects the emergence of innovation not only as an economic engine but also as a driver of social equity and balanced regional development,” according to the official statement.

Over the past decade, India has rapidly evolved into one of the world’s largest startup ecosystems, with more than 2 lakh startups as of December 2025.

Major hubs like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR have been at the forefront of this transformation.

At the same time, smaller cities are also steadily contributing to the momentum, with around 50 per cent of the startups emerging from tier 2 and 3 cities, reflecting the democratisation of entrepreneurship.

The Startup India Initiative, led by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, has emerged as the cornerstone of India’s innovation and entrepreneurial ecosystem.

“This progress is reflected in India’s high-value startup ecosystem, which has expanded from just four privately held companies valued above $1 billion in 2014 to over 120 such firms today, with a combined valuation exceeding $350 billion, underscoring both the scale and growing global relevance of India’s startup landscape,” said the statement.

Moreover, the Fund of Funds for Startups (FFS) is a flagship initiative of the DPIIT under the Startup India Action Plan and is managed by the Small Industries Development Bank of India (SIDBI).

With a corpus of Rs 10,000 crore, the scheme supports SEBI-registered Alternative Investment Funds (AIFs), which in turn invest in startups, with the objective of expanding access to domestic risk capital and strengthening the entrepreneurial ecosystem.

“The corpus of Rs 10,000 crore has been committed to over 140 AIFs, which have collectively invested over Rs 25,500 crore in more than 1,370 startups,” said the statement.

IANS