Rural areas make significant strides in startups Entrepreneurs seek optimal conditions.

Dhaval Nai's triumph on Shark Tank with his tea glass washer showcases the ascent of entrepreneurs from small towns. Hailing from Palanpur in Banaskantha, Nai, along with his elder brother, not only secured Rs 30 lakh in funding but also gained nationwide recognition. Their product? A washer designed specifically for tea cups and glasses. "I have a diploma in mechanical engineering, and my brother is studying commerce," says Nai. "The journey began in 2018 with the aim of contributing to grassroots development, but it was during the post-pandemic period that the idea materialized. My washer can clean nine tea cups or glasses in just 30 seconds, addressing the hygiene concerns prevalent at roadside tea stalls." Leveraging social media, Nai has successfully sold over 50 machines across Gujarat, Maharashtra, Karnataka, Tamil Nadu, and Rajasthan.

Nai was among the 20 beneficiaries of grants provided under the Srujan Seed Support Scheme (S4) of the state government's Student Startup Innovation Policy (SSIP). He recently received Rs 15 lakh for production in the city. Out of the 96 startups supported by the scheme, 19, or 20% of the total, hailed from tier-2 and tier-3 cities such as Ankleshwar, Botad, Deesa, Kapadvanj, Palanpur, and Vera val.

Mukesh Kumar, principal secretary of higher and technical education, emphasizes that sector-specific grants and initiatives are bringing forth innovative ideas. "While concentration is higher in places like Ahmedabad and Gandhinagar, Srujan aims to provide entrepreneurs in tier-2 and tier-3 cities with both funding and mentorship," he explains. "Efforts are yielding results, with startups emerging in diverse areas from fisheries to agriculture and deep tech to pharmaceuticals."

Prius Khambhat, chairman of Rasna Group and a startup investor, notes the importance of rural startups in strengthening the agriculture sector and rural economy. For instance, Saurabh Patel from Anand received Rs 6.5 lakh to develop a prototype for his virtual realty walk-through platform. Dipping Patel from Valsad was granted Rs 5 lakh for prototype development of electric vehicles (EV). Shyam Raichura, an angel investor based in Rajkot, stresses the necessity of timely support and mentoring for entrepreneurs at all stages of growth. "Entrepreneurship is a journey, and the evolution of tier-2 and tier-3 cities will be facilitated by a well-developed ecosystem," he concludes.