The Rise of Startup Ecosystems in Tier II and Tier III Cities: A Look at Chhattisgarh’s Success Story

The startup landscape in India is undergoing a significant transformation, with Tier II and Tier III cities emerging as new hubs for innovation and entrepreneurship. Recent reports by the National Association of Software and Service Companies and the Department for Promotion of Industry and Internal Trade (DPIIT) have highlighted the increasing number of startups originating from these non-metro cities.

One such city making waves in the startup ecosystem is Chhattisgarh, where Rungta College of Engineering and Technology (RCET) in Bhilai is playing a crucial role in nurturing and supporting budding entrepreneurs. Through initiatives like the Rungta College Technology Business Incubator (RUBI), RCET provides resources, mentorship, and access to funding for students looking to start their own ventures.

RUBI, founded in 2016, follows the principle of five I’s – infrastructure, incubation, investment, intelligence, and IT, offering a comprehensive support system for startups. The incubator recently received funding through the Startup India Seed Fund Scheme and secured additional investments to further support student and entrepreneur initiatives.

Chhattisgarh currently boasts 362 startups as of December 2023, according to DPIIT, showcasing the growing entrepreneurial spirit in the state. One of the flagship initiatives driving this growth is the annual Chhattisgarh Entrepreneurship and Startup Summit (CHESS), organized by RUBI.

The recently concluded CHESS 2025 saw a significant increase in investor participation and startup pitches, with key announcements made by Chhattisgarh Finance Minister O P Choudhary to boost the state’s startup ecosystem. Panel discussions at the summit covered various topics, including AI and deep tech disruptions, family businesses, and the role of incubators in supporting startups.

The formation of the Chhattisgarh Angel Investors Network was also announced at CHESS, aiming to provide funding support to startups in post-seed and series stages. The event recognized and awarded businesspersons and startup founders, with Shradha Sharma, Founder and CEO of YourStory, receiving the ‘Voice of Startups’ title.

Shradha Sharma, in her address at CHESS, emphasized the importance of dreaming big and executing effectively to build successful ventures. She encouraged aspiring entrepreneurs to leverage the supportive platforms available to them and highlighted the need for inclusive ecosystems that address challenges faced by all entrepreneurs, especially women.

As the startup ecosystem in Chhattisgarh continues to strengthen, events like CHESS play a vital role in bringing together stakeholders, fostering collaboration, and driving innovation in the region. With the support of initiatives like RUBI and the growing investor interest, Chhattisgarh is poised to become a thriving startup hub in India.