ET Startup Awards 2026 | Tier-II cities rechart startup geography: IDFC First Bank’s Vaidyanathan
The startup story is not confined to a handful of sectors or cities, but is being shaped by talent and ideas across the country, Vaidyanathan said. About 52% of the startups banking with IDFC First Bank come from tier-II and -III locations, reflecting the widening geography of entrepreneurship, he said.
India's startup ecosystem is expanding beyond traditional technology hubs, according to V Vaidyanathan, CEO and managing director of IDFC First Bank. At the ET Startup Awards event, Vaidyanathan highlighted the range of innovative applications being developed in sectors such as satellite technology, hyperspectral imaging, AI-enabled brain mapping, and advances in computing.
He emphasized that the startup landscape is no longer confined to specific sectors or cities, but is being driven by talent and ideas across the country.
A significant portion of the startups banking with IDFC First Bank, approximately 52%, originate from tier-II and tier-III locations, indicating a widening geography of entrepreneurship. Vaidyanathan stressed that the growth of the ecosystem relies on practical support that assists young companies in transitioning from an idea to a functioning business. Access to finance, suitable banking services, and guidance on managing funds are crucial for a startup's progress, he said.
Vaidyanathan advised founders to pay closer attention to their financial management. While startups often secure capital from investors, they may leave funds in accounts that do not generate interest. Entrepreneurs should explore their options and make their cash work more effectively. IDFC First Bank, founded through the merger of Capital First and IDFC Bank in December 2018, is playing a role in nurturing this evolving startup landscape.
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