Bengaluru, Chennai and Mumbai may have been favoured destinations for start-ups until now, but seeing the success of the likes of Flipkart and Ola, there’s a breed of new entrepreneurs emerging from non-metro cities such as Bhubaneswar, Indore, Jaipur, Kanpur, Agra, Goa and even Guwahati.

Growing internet penetration, rising middle-class incomes and surging smartphone usage combined with the young generation’s enthusiasm to pursue new and innovative ideas has led to the creation of a start-up ecosystem in these cities, which now house nearly 300 new ventures.

Gaurav Chandel, founder of Zaicus Logistics, comes from a small town in Uttar Pradesh. “When I started in 2012, the market had not matured. Now, it is different in small towns,” he says. “Firstly, income levels are increasing and thus the number of HNIs (high net-worth individuals) willing to fund new ventures. Besides, with several technology universities, including IITs, coming up in smaller cities like Bhubaneswar, there is availability of improved talent.”

Cost-effective
Most start-ups are technology-based and focus on solving local problems around power, energy, transport, healthcare, retail and education. Besides, starting a venture in smaller towns is cost effective compared to metros. According to Kunal Nadwani, founder of Chandigarh-based financial trading company uTrade Solutions, and head of the Chandigarh Angel Network, over 100 new technology-based ventures have come up in the city in the last one year.

“Entrepreneurs also want to stay close to their families and keep costs low while they start their ventures. This is another reason why there has been a spurt in start-up ecosystem in non metro cities,” said Nadwani, adding that there is also an ample workforce available.

The spurt in new ventures is also creating huge job opportunities for a workforce that earlier used to migrate to metros in search for better opportunities.

Talent, connectivity
Jagriti Shringi, founder of Jaipur-based fashion jewellery portal [url=http://www.voylla.com/] Voylla.com[/url], said: “Jaipur is turning into a home for several start-ups focused on fashion and furniture because of the availability of talented craftsmen. Air connectivity has improved so travelling to Bengaluru or Mumbai where most of the investors are based is also not an issue any more.”

According to sources, there are over 50 start-ups in Jaipur, including Cardekho.com and furniture e-tailer Gulmoharlane.com.

Srikumar Misra, Founder & CEO, Bhubaneswar-based Milk Mantra, said: “In 2009-10 when I raised my first round of funding, it took 18 months and 20 angel investors spread over India and UK and Aavishkaar VC.

“Odisha was not even on the map of the VC community, and that, too, a non-conventional sector like dairy. But with the launch of Milky Moo and the exponential growth we clocked, a mainstream investor like Fidelity came on board in our Series B. Odisha and eastern India are on the radar now and we hope that the start-up ecosystem will begin to evolve positively in this part of the country as the VC and PE community realise the significant untapped potential of the East. Our recent MooShake launch will hopefully accelerate this further.