How Shark Tank India changed startup funding in tier 2-3 cities

Entrepreneurs from tier 2 and tier 3 cities are now pitching confidently on national platforms, attracting investor attention, and entering early-stage funding conversations that once felt out of reach. While this shift has been driven by multiple factors, Shark Tank India has played a visible role in accelerating the change.

This article looks at how the show reshaped startup funding access for founders outside India’s major metros and what it means for the broader ecosystem.

Startup funding before Shark Tank India

<figure class="image embed" contenteditable="false" data-id="588737" data-url="https://images.yourstory.com/cs/wordpress/2016/10/Black-money.jpg" data-alt="Money" data-caption="

” align=”center”>

Historically, startup funding in India was concentrated in Bengaluru, Mumbai, and Delhi-NCR. Access to investors depended heavily on proximity to networks, accelerators, and venture capital firms based in these cities.

For founders in tier 2 and tier 3 cities, raising capital often required relocation or heavy reliance on cold outreach. Visibility was limited, and even promising ideas struggled to gain attention without strong metro-based connections.

The shift towards non-metro startups

In recent years, funding trends have started to change. Non-metro and tier 2-3 startups accounted for 24% of 628 early-stage deals in 2023, up from 20% of 970 deals in 2022. While overall deal volume declined, the share captured by startups outside major cities increased. This reflects growing investor confidence in founders from smaller towns.

Shark Tank India has aligned with this trend by normalising the idea that scalable businesses can come from anywhere, not just metros.

What Shark Tank India changed

The show did not create new capital pools overnight, but it changed perception. By putting entrepreneurs from tier 2 and tier 3 cities on prime-time television, Shark Tank India brought national visibility to founders who would otherwise remain local.

Business ideas were explained in simple terms, making entrepreneurship accessible to a wider audience.

Even startups that did not secure deals benefited from exposure. Visibility led to inbound interest from angel investors, mentors, distributors, and customers after episodes aired. In this sense, the show functioned as a credibility amplifier rather than just a funding platform.

Tier 2 and tier 3 cities entering the spotlight

Founders from states such as Rajasthan, Uttarakhand, Bihar, and Odisha have appeared on the show, often highlighting their non-metro origins proudly. Cities like Jaipur and Nashik have emerged as growing startup hubs, supported by affordable talent, improving digital infrastructure, and lower operating costs.

Shark Tank India helped shine a spotlight on these locations, reinforcing the idea that strong businesses do not need a metro pin code. While not all startups from these regions closed deals on the show, their participation alone helped change narratives around where innovation can originate.

A broader ecosystem effect

It is important to note that Shark Tank India is part of a larger ecosystem shift. Government initiatives, better internet access, remote work, and regional accelerators have all contributed to decentralising entrepreneurship. However, Shark Tank India played a cultural role. It made startup conversations mainstream in households across India and inspired founders in smaller towns to take their ideas seriously.

@media (max-width: 769px) {
.thumbnailWrapper{
width:6.62rem !important;
}
.alsoReadTitleImage{
min-width: 81px !important;
min-height: 81px !important;
}

.alsoReadMainTitleText{
font-size: 14px !important;
line-height: 20px !important;
}

.alsoReadHeadText{
font-size: 24px !important;
line-height: 20px !important;
}
}

Also Read

Shark Tank India fame Orbo AI eyes overseas markets in beauty and personal care space

What this means for founders in smaller cities

For entrepreneurs in tier 2 and tier 3 cities, the biggest takeaway is confidence. Funding is still competitive, and strong fundamentals matter more than television exposure. But visibility barriers are lower than before. Investors are increasingly open to backing founders outside metros, especially at the seed stage. The path to capital is no longer limited by geography. What matters now is clarity of business model, unit economics, and execution.

The bigger picture

Shark Tank India did not replace traditional funding routes, but it widened the door. By bringing non-metro founders into the spotlight, it helped reshape how investors and audiences view entrepreneurship in India. The result is a more inclusive startup ecosystem where ambition is not restricted by location.