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Beyond Bengaluru: How India’s Smaller Cities Are Breeding the Next Wave of Startups


June 9, 2025 Author- MyBranch

A few years ago, if you said you were starting a company from Indore or Guwahati, most people would raise an eyebrow. “Why not Mumbai or Bengaluru?” they’d ask.

But things are changing.

Now, smaller cities are becoming great places to launch a business. And it’s not just talk—we’re seeing it happen every day. At MyBranch, we work with founders and small teams in over 70 locations across India, many of them in tier 2 and tier 3 cities. And we’ve seen firsthand how this shift is opening new doors for entrepreneurs.

Here’s what’s really going on—and how we’re helping make it easier.

Big Cities Come With Big Costs

Let’s be honest. Running a business in Mumbai, Bengaluru, or Delhi is tough—especially when you’re just starting out. Office rent burns a hole in your pocket. Salaries are high. Even a cup of tea costs more!

Now, picture a founder in Bhubaneswar or Kochi. Their rent is reasonable, their team lives nearby, and they aren’t stuck in traffic for hours. The same startup that’s struggling to survive in a metro can actually thrive in a smaller city.

There’s Plenty of Talent Outside the Metros

We’ve met graphic designers in Nagpur, coders in Coimbatore, and digital marketers in Vadodara who are doing amazing work. Many of them studied at local colleges and chose to stay back instead of moving to a big city. Why? Because they now have real job opportunities right where they are.

Startups are starting to notice. They’re building strong local teams without having to pay metro-level salaries.

The Internet Changed Everything

Fast internet has been a game-changer. Startups no longer need a big-city PIN code to look professional. They need a good connection, a decent laptop, and a place to focus.

That’s where MyBranch comes in.

But before we go any further, let’s take a look at some real-life success stories from businesses thriving in Tier 2 and Tier 3 cities:

  1. Webgility – Indore, Madhya Pradesh

Webgility, a U.S.-based e-commerce automation software company, expanded its presence in India by inaugurating a state-of-the-art 16,000 sq. ft. campus at NRK Business Park in Indore. This facility boasts modern amenities, including a gym, cafeteria, and game room, and serves as a hub for engineering, operations, infrastructure, and customer success teams. The company's strategic move aimed to tap into the rich talent pool of Indore while offering employees a high-quality work environment. 

       2. HCLTech – New Vistas in Lucknow, Madurai, Nagpur, and Vijayawada

HCLTech launched its "New Vistas" initiative to decentralize its operations by establishing large-scale campuses in Tier 2 and Tier 3 cities like Lucknow, Madurai, Nagpur, and Vijayawada. These centers have become innovation hubs, collectively employing over 25,000 professionals and catering to global clients across domains such as Digital, Engineering, AI, and Cloud. The initiative not only brings global opportunities to these cities but also emphasizes work-life balance and local talent development.

       3. Paytm – Deepening Roots in Tier 2 & 3 Cities

While Paytm's headquarters are in Noida, the company has significantly expanded its operations into Tier 2 and Tier 3 cities. By setting up regional offices and support centers in cities like Jaipur, Lucknow, and Bhopal, Paytm has been able to cater to a broader user base. Notably, over 50% of Paytm's user base originates from these smaller cities, with significant adoption in places like Surat, Rohtak, Panipat, Mangalore, and Ranchi. The company's multilingual app and localized strategies have been pivotal in this expansion.

How We’re Helping Founders Across India

At MyBranch, we’ve been quietly setting up flexible workspaces in places people didn’t expect. We’re not just in Mumbai or Pune—we’re in places like Raipur, Mangalore, Tirupati, and Jodhpur too.

Here’s what we offer:

  • Shared Offices That Feel Like Yours

These aren’t loud, crowded spaces. Our shared offices feel like your own—quiet, clean, and professional. You get your own desk, access to meeting rooms, and everything you need to work peacefully.

  • Managed Offices With Zero Hassle

Need a full office but don’t want the headache of setting it up? We’ll do it for you. We’ll find the space, design it, furnish it, and even take care of the daily operations. You just show up and start working. 

  • Virtual Offices For Remote Teams

Working from home but need a registered business address? We’ve got you covered. Our virtual office services give you a real address, mail handling, and access to meeting rooms when you need them. It’s great for GST registration too.

Flexibility That Actually Makes Sense

Growth isn’t always predictable. Some months you hire, some months you scale back. We get it. That’s why our workspaces are designed to be flexible. Whether you’re adding one team member or ten, we’ll adjust with you.

Real Growth, Real People, Real Places

We’ve seen startups go from 2 people to 50 people—from a desk in Coimbatore to offices in 4 cities. They didn’t do it with flashy VC money. They did it with smart decisions, hard work, and the right support system.

Our job is simple: give them a space that works.

And clearly, it’s working. We have a 90% client retention rate—and most of our clients stay with us as they grow.

Final Thought

If you’re a founder dreaming big, you don’t need to move to a metro to make it happen. You can build something amazing from wherever you are.

We’re here to make sure you’ve got the right office to do it.

Let’s grow your business—your way, from your city.