Karnataka expands its startup ecosystem beyond Bengaluru to tier-II cities

Karnataka is accelerating efforts to expand its startup ecosystem beyond Bengaluru, with tier-II cities like Mysuru, Manipal, Dharwad, Tumkur, and Kalaburagi emerging as rising hubs for innovation and entrepreneurship. The state’s “Beyond Bengaluru” initiative is driving this decentralisation, aiming to distribute opportunities more evenly across the region.

Also read: Bengaluru reigns supreme in startup funding, ranks 14th globally in innovation

Karnataka’s progress with startups

At an event, Karnataka’s progress was highlighted with data showing that Bengaluru remains a major startup engine, having secured over $48 billion in funding since 2020, and giving rise to 31 unicorns, 85 soonicorns, and 317 minicorns. However, tier-II cities are now steadily gaining traction.

Mysuru has already drawn notable investment, while Manipal and Dharwad benefit from strong academic and industrial ecosystems. Tumkur, despite a relatively small startup base, has produced a minicorn, showcasing its potential. Kalaburagi is also gaining recognition, aided by improved connectivity and infrastructure.

Fintech continues to dominate Karnataka’s funding landscape, especially in digital payments and alternative lending. Additionally, digital commerce, electric vehicles, logistics, and fashion tech are emerging as key sectors fueling the next generation of startups. These trends signal a broader shift, positioning Karnataka as a multi-city innovation hub driving India’s future growth in technology and entrepreneurship.