
Ecosystem Building in Smaller Cities: Lessons from Jodhpur and Beyond
Introduction
In 2025, as the Indian startups 2025 are about to begin the next chapter, cities that are not popular metros are proving their worth. Cities like Jodhpur aren't just showing up on the maps; they are changing the way we think about how to build infrastructure, scale, and maintain innovation within smaller towns. Based on a decade of experience in building ecosystems and the observations I've made in Marwari Catalysts (MCats), below are some specific tips and tricks to strengthen startups in smaller cities.
Why Smaller Cities Hold Startup Power?
Smaller cities usually have advantages that are often overlooked:
- Cost-effectiveness: Operating costs, office space and living expenses, as well as wages, are much lower, which gives startups more room to grow.
- Talent that is not being utilised: Engineering colleges, regional universities, and energised young people are everywhere. They might not all be in cities, but they're packed with potential.
- Authentic problems: Smaller cities give you close contact with real challenges, such as healthcare access, agriculture, and infrastructure. These are rich sources of innovative ideas from the real world.
- There is cohesion in the community: There is often more unity, networks are tighter, and the founders are more likely to support each other.
These advantages make smaller cities fertile. Without structure, vision, and support, potential remains only that.
The Role of Startup Investors India and Startup Funding India
To move the ecosystem beyond its potential, startups require smart cash. Startup Investors India, along with Startup Finance India, plays an essential role in:
- They are a source of confirmation. When early-stage investors invest money, they send signals to investors that the ideas are investable.
- They also provide networks, funding, mentorship, and connections to supply chain suppliers, customers, and sometimes global markets.
- They enable risk-taking. With capital, startups can test their ideas and build prototypes, make mistakes quickly, and then try again.
Marwari Catalysts (MCats) demonstrates how aligning with investors and establishing robust funding mechanisms can allow entrepreneurs from Tier-2 cities and even Tier-3 ones to witness significant growth and expand.
Learn from Jodhpur & Marwari Catalysts (MCats)
Here are some specific learnings from what has been happening in Jodhpur, particularly under the direction of Marwari Catalysts
-Develop the local infrastructure as well as support and maintenance systems.
-Co-working spaces, mentorship hubs, incubators, and cafes allow the exchange of ideas, space for experimentation, and community building. MCats started by creating spaces for founders to meet with investors, network, and expand. marwaricatalysts.com+3marwaricatalysts.com+3marwaricatalysts.com+3
-It's not enough to just mentor. Investors who put in their time, resources, and capital demonstrate faith in their investment. MCats connects startups with investors and stays a growth partner, not only an advisor. India Today+2marwaricatalysts.com+2
-From the initial idea to acceleration, through local mentorship to domain-specific guidance, from small pilot funds to larger rounds. The more scaffolded and staged a startup is, the smoother its journey will be. MCats' Thrive Accelerator and Venture Studio are examples.
-Collaboration with the government, policy support, and regional projects.
-Solid mentor-investor networks.
-Founders require domain experts as well as investors who know the possibilities and challenges of cities with smaller populations. If mentors have credibility and can put in the effort, the ideas can grow into viable ventures.
-The focus is on value-driven, sustainable business.
-Startups that are based in cities with smaller populations can build by addressing local issues of sustainability and inclusion. MCats' impact fund and efforts demonstrate how startups can help communities while expanding in size. newsvoir.com+1
Recommendations for the future
If you're working on or helping to create small-scale startup ecosystems in cities, here are some guidelines to follow:
- Set up locally based demo days or pitch events for startups to showcase their work, gain feedback, and attract early investors or customers.
- Promote co-founder matchmaking and peer networks to ensure that founders don't feel lonely. Sharing experiences is essential.
- Encourage domain-specific mentorship (agritech, fintech, health, etc.) so that startups can gain insights specific to their industry.
- Facilitate access to startup capital in India, such as angel rounds, grants, and locally-based VC interest. Make the process transparent.
- Help infrastructure Labs for co-working prototyping centres, high-speed connectivity, logistical support, and talent hubs.
- Maintain sustainability, inclusion, and community at the forefront. Solutions that can serve a larger population tend to be more resilient.
Conclusion
The creation of ecosystems for smaller towns isn't only about copying metro models; it's about harnessing the local strengths in nurturing founders and connecting them to opportunities and capital. As the startup ecosystem 2025 develops, Jodhpur's case is proof that innovative concepts, deliberate investment, and a devoted community can transform every city in the world into a centre of innovation.
Marwari Catalysts (MCats) is living proof that assisting local entrepreneurs and investing in their ventures, as well as looking globally and regionally, is helping to redefine what it means to create Indian startups in 2025. The lessons learned from Jodhpur are valuable far beyond Rajasthan. They show the way to all other new startup hubs that are emerging in India.
