ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business

India's smaller cities take bigger share of startup boom

Lower operating costs attract entrepreneurs despite shortage of investors

Staff at Merako Media, a media, marketing and design startup based in Mysore, a city with a population of less than 1 million people about 110km from Bangalore (Photo by 101Reporters.com)

BANGALORE -- After struggling to find affordable office space in Mumbai, India's financial hub, Sarabdeep Singh decided to move his startup company more than 1,500km north to Mohali, a town with a population of 176,000 in the state of Punjab.

Singh, co-founder of Bodhik, a financial technology company, had been operating from shared office space, which proved inadequate when his team expanded. An office for eight to 10 employees in Mohali costs about 15,000 rupees ($231) to 20,000 rupees a month, including utilities, compared with more than 50,000 rupees excluding utilities in Mumbai, he said.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more