Investors are increasingly turning their attention towards small-town startups in India, with 90% of startups in 2023 emerging from Tier-II and Tier-III cities. These startups received around 22% of the total funding, and 44% of investors have made investments in these cities.
The government has proposed to amend the definition of “eligible startup” under the Startup India scheme to get a tax holiday, to one that has been incorporated between April 1, 2016 and March 31, 2025.
India has experienced a surge in startups and funding, with over 16,000 new tech companies added in 2020. Despite funding obstacles, investment firms have shown confidence in Indian startups, with a total funding of $8.4 billion in 2023.
Key figures in the Indian startup ecosystem celebrated National Startup Day on January 16, discussing the challenges and opportunities for entrepreneurs in the country.