IDFC First Bank sees 52% of startup clients from Tier-II/III cities

IDFC First Bank reports that 52% of its startup clients now come from Tier-II and Tier-III cities, a figure the bank’s CEO V Vaidyanathan shared at The Economic Times Startup Awards 2026. The numbers show how India’s entrepreneurial activity is spreading beyond metros.

This trend matches earlier StartupReader reporting, including a September 29 story on women-led weight-loss startups gaining ground in Tier-II cities. While Bengaluru still leads in funding—taking a large share of India’s 2026 startup investments, per a September 25 Moneycontrol analysis—smaller cities are becoming more visible. Armatrix, a robotics startup from outside the usual hubs, won the ET Startup Award’s Best on Campus category this year, another sign of the change.

The numbers suggest investors may need to look beyond traditional centers. For now, the data shows India’s startup scene is expanding in new directions.

Sources: economictimes.indiatimes.com