Angel Investment Potential in Tier 2 & 3 Cities

India's startup ecosystem is undergoing a remarkable transformation, and the spotlight is shifting from the bustling metros to the vibrant Tier 2 & 3 cities.???

Shoutout to Jamnagar, Indore, Patna, Jaipur, Dehradun, Kochi, and dozens of other Tier 2 & 3 cities across India!???

These emerging startup hubs are not just challenging the status quo but also presenting a golden opportunity for angel investors to discover the next big thing.??

Here are 7 compelling reasons why investing in startups from Tier 2 and Tier 3 cities is a smart move in 2024:

Lower valuations???

Startups in these cities often have lower valuations compared to their metro counterparts, providing investors with more bang for their buck.

Untapped potential???

These cities are home to a vast pool of untapped talent and innovative ideas waiting to be discovered and nurtured.

Addressing local challenges???

Startups in Tier 2 and Tier 3 cities are well-positioned to solve local problems and cater to the unique needs of their communities.

Rapid growth potential?? ?

With the right support and funding, these startups have the potential to scale rapidly and become market leaders in their domains.

Diversification???

Investing in startups from different regions allows you to diversify your portfolio and mitigate risk.

Better access to raw materials??

Sustainability-focused startups in Tier 2 and Tier 3 cities have easier access to raw materials, enabling them to create eco-friendly solutions more efficiently.

Bootstrapping comes naturally??

Entrepreneurs in smaller cities often master bootstrapping, ensuring lean operations, reduced hiring costs, and capital efficiency from the get-go. How does this help angel investors? Higher levels of innovation with less capital expenditure!

A few good examples, you ask? Well, here they are??

• Did you know that Paper Boat, the hit beverages brand, started in the small town of Manesar? Now it has raised over $30 million from investors like Sequoia Capital Sofina.
• Razorpay , once a fintech startup and now a unicorn, stands as a frontrunner in the payment gateway services industry. It has empowered 7 million individuals and hails from Jaipur. It is not just a regular fintech startup as it has a market share of 34.90% in the banking market and competes with 90 competitor tools in the banking category.
• Shopkirana, the e-commerce giant, serves a clientele of 50,000 Kirana stores across eight cities in four states - Madhya Pradesh, Uttar Pradesh, Rajasthan, and Gujarat, with its origins rooted in Indore.
• DeHaat , a technology-driven platform offering comprehensive agricultural services to farmers, has carved out its success story in Patna, Bihar.
• Dilkhush Kumar, a resident of Bangaon village in the Sahara district of Bihar, began his journey as a rickshaw puller and vegetable vendor. Today, he is the proud owner of a renowned taxi service startup in Bihar known as RodBez . This startup was recently even featured on Shark Tank India Season 3. How awesome is that!

What's even more remarkable is that the traditional startup hubs — Bengaluru, Delhi, and Mumbai — often referred to as the "Big 3", saw a decrease in their share of funding in 2022-23. On the contrary, and the highlight of our article, startups based in Tier 2 and 3 cities experienced an impressive 11% increase in their funding, as per media reports.

Isn’t this enough to prove that the startup landscape in India is going bullish beyond metros??

We don't want you to miss out on this incredible opportunity - to be a part of something big. Take the first step towards discovering the next unicorn from the heart of India! ??

With the Build-To-Sell (BTS) opportunity, 1stCheque by Favcy (backed by India’s largest venture studio) is empowering Tier 2 & 3 cities startups intending to give profitable exits to all stakeholders.?Join The Tribe and be a part of this revolution!