For years, India’s startup narrative revolved around a few major cities—Bengaluru, Mumbai, Delhi NCR, and Hyderabad. The general belief was that unicorns could only emerge from ecosystems with abundant venture capital, elite talent, and established tech infrastructure.
For entrepreneurs in Tier-2 and Tier-3 cities, building a billion-dollar startup seemed implausible. The ecosystem was sparse, resources were limited, and mentorship opportunities were rare. Founders often lacked exposure to global markets or the networks necessary to raise capital.
But the landscape has changed dramatically over the past decade, especially after the digital acceleration triggered by Jio’s mobile internet revolution and the pandemic-fueled remote work trend.
The Rise of Unicorns from Smaller Cities
A new generation of founders has shattered the notion that success is geographically bound. With determination, technology, and a deep understanding of regional markets, several entrepreneurs have scaled businesses from smaller cities to unicorn status.
Here are some of the most compelling success stories:
PhysicsWallah – From Allahabad and Kota to a National EdTech Giant
Founder: Alakh Pandey
Headquarters: Noida (roots in Allahabad and Kota)
Valuation: $1.1 Billion
PhysicsWallah began as a YouTube channel, with Alakh Pandey teaching science in Hindi to competitive exam aspirants. His regional-first approach, accessible pricing, and authenticity resonated with students from smaller towns. This strong community engagement helped the platform evolve into a full-fledged edtech company—eventually becoming India’s first profitable edtech unicorn.
CarDekho – From Jaipur to the Unicorn League
Founders: Amit and Anurag Jain
Headquarters: Jaipur
Valuation: $1.2 Billion+
After attending the 2008 Auto Expo, the Jain brothers returned to Jaipur and created a car review platform. With a clear understanding of consumer needs and the patience to iterate, they scaled CarDekho into a category leader. The company leveraged the cost advantages of being based in Jaipur while expanding nationally.
DealShare – Regional Commerce at Scale
Founders: Vineet Rao, Sourjyendu Medda, and team
Headquarters: Jaipur
Valuation: $1.6 Billion (2022)
DealShare tapped into a massive opportunity—social commerce for non-metro consumers. Its model, which promoted group buying through social platforms like WhatsApp, struck a chord with value-conscious buyers in Tier-2 and Tier-3 towns. The company’s growth was driven by its localised pricing, vernacular content, and a deep understanding of regional consumer behavior.
OfBusiness – Transforming B2B Supply Chains
Co-founder: Asish Mohapatra
Headquarters: Gurugram
Valuation: $5 Billion+
While its official HQ is in Gurugram, OfBusiness grew rapidly by targeting underserved industrial clusters across India—places like Ludhiana, Coimbatore, and Rajkot. By digitizing procurement and credit for SMEs, the company tapped into a massive offline market and built a robust presence in the real economy of smaller cities.
Infra.Market – Building Construction Tech from Thane
Founders: Aaditya Sharda and Souvik Sengupta
Headquarters: Thane
Valuation: $2.5 Billion
Infra.Market digitized the construction materials supply chain by offering tech-driven procurement solutions to contractors and developers. Their early growth came from Tier-2 cities where infrastructure demand was booming. This regional-first focus helped them scale into one of the fastest-growing startups in the construction tech space.
What Helped These Founders Succeed?
A few common traits define their journey:
They built for Bharat, not just India. Their products and services were designed for the needs of consumers and businesses in non-metro cities.
They operated lean. Lower costs for real estate and talent helped them extend their runway and focus on long-term outcomes over flashy short-term metrics.
They leveraged digital distribution. Whether it was YouTube, WhatsApp, or mobile apps, they scaled without physical footprints.
They developed deep community relationships. Many of these founders spoke the language, understood the mindset of their customers, and built trust over time.
They stayed patient and prioritized sustainable product-market fit rather than chasing aggressive growth for valuation alone.
The Road Ahead
The rise of unicorns from smaller cities is not a fluke—it’s a sign of what’s next. India’s next billion-dollar companies may come from Bhopal, Surat, Kochi, or Nagpur. With UPI access, mobile-first consumers, growing investor interest, and a maturing startup ecosystem, Tier-2 and Tier-3 India is no longer just a market—it’s a launchpad.
Government initiatives like Startup India, as well as the growth of regional incubators, are empowering entrepreneurs who are building from where they are, with what they have. Investors, too, are increasingly scouting outside metros for the next breakout story.
Final Takeaway
India’s startup success story is no longer confined to its largest cities. Geography is no longer a limitation. What matters most is clarity of purpose, a deep understanding of the problem, and the resilience to build consistently.
For entrepreneurs across India, the message is clear: Unicorns aren’t born in metros—they’re built through grit, insight, and execution.
Want to learn how startups from smaller cities can grow, raise capital, and scale globally? Follow the latest stories, strategies, and expert insights at FounderLabs.
