Mumbai, December 23, 2025: Climate entrepreneurship in India is increasingly moving beyond metro cities, with Tier-2 and Tier-3 regions emerging as important hubs of green innovation, according to new data from the Greenr Sustainability Accelerator by TechnoServe, supported by the IKEA Foundation and Visa Foundation.
Data from three cohorts of the Greenr programme shows that more than 300 small and growing green businesses (SGBs) across 106 cities in 28 states have been supported so far. Nearly 45% of these startups are based in Tier-2 and Tier-3 cities, indicating a growing decentralisation of climate innovation in India.
Waste management has emerged as the dominant focus area, with around 60% of the enterprises working on solutions to address India’s waste challenges. These include e-waste, wastewater management, plastics recycling, upcycling, and the development of green construction materials from agricultural waste. Agroforestry, textiles, and energy were identified as the other key sectors driving climate innovation. Collectively, these efforts align with national priorities such as Swachh Bharat (Urban) 2.0, Extended Producer Responsibility (EPR) for plastics, and Mission LiFE’s circular economy goals.
The accelerator’s support has translated into measurable outcomes. Over the past two cohorts, Greenr-backed startups recorded an average revenue growth of 61% and a 24% increase in job creation. To support scaling, the programme facilitated over USD 16 million in funding, structured across equity, debt, and grants.
The data also highlights a shift in the profile of climate entrepreneurs. A majority of founders have less than five years of business experience, reflecting the emergence of new entrepreneurial ecosystems outside traditional startup hubs. Women leadership is also prominent, with 60% of the supported enterprises being women-led. Cities such as Jaipur, Bhubaneshwar, Surat, Indore, Coimbatore, Kochi, Guwahati, Madurai, Dehradun, and Bhopal feature among the top locations for Greenr-backed innovation.
Ajay Menon, Senior Practice Lead at TechnoServe India and Program Director, Greenr Sustainability Accelerator, said, “India’s climate transition will be won in Tier-2 and Tier-3 India. The entrepreneurs we work with are building practical solutions where the need is greatest – converting waste to value, renewable energy, and circularity at the last mile, rather than chasing unicorn valuations. When we combine hands-on, bespoke advisory with access to fairly priced financing (equity, debt or grant funding) and market linkages, these founders grow revenues, create jobs, and deliver measurable environmental outcomes. The data is clear: climate innovation is no longer a metro story; it’s a small-town movement. And it requires continued momentum, powered by systemic change from a convening of the right stakeholders to provide the needed support in terms of business building, financing, access to markets, support for pilots and changes to policy in favour of circular economic business models.”
An example of this trend is Plastroots, a zero-landfill waste management company from Nagpur, Maharashtra. Founded in 2019, the company provides end-to-end dry waste solutions for communities, governments, and industries. With support from the Greenr programme, Plastroots scaled its EPR compliance vertical, generating over ₹3 crore in revenue within 12 months, achieving five-fold growth, and expanding operations across Maharashtra, Chhattisgarh, and Rajasthan.
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