Mangaluru Startup Scene Experiences Surge in Investment, Shifting Away From Real Estate

Mangaluru is witnessing a significant boom in its startup ecosystem as investors increasingly favor tech innovation over traditional real estate investments.

For years, coastal startups in the region relied on personal funding, loans from family and friends, or bank financing; however, over the past three years, a notable shift has occurred. Local angel investors and high-net-worth individuals, previously focused on property, are now actively backing homegrown tech ventures. This change is fueled by government initiatives like Elevate and BIRAC, alongside the mentorship programs offered by TiE Mangaluru and the Silicon Beach Programme.

TiE Mangaluru’s six-month mentoring program and the recently launched Bolpu Mangaluru, led by Dakshina Kannada MP Capt Brijesh Chowta, are playing a crucial role in nurturing young entrepreneurs. Karnataka’s Elevate program recently selected 87 startup ideas from outside Bengaluru – the majority originating from Mangaluru – out of 400 applications, demonstrating growing recognition of the city’s potential. Johnson Tellis, co-founder of InUnity, noted, “The right ideas get funding from angel investors as well as grants from the govt and mentorship. This was not the case earlier.” This influx of capital is particularly important as deep tech startups often require 5-7 years to achieve substantial growth and inherently involve risk.

Shashir Shetty, chief growth officer at Niveus Solutions (Part of NTT Data), highlighted the improved access to information for both startups and investors, stating that an agritech startup recently secured Rs 50 lakh in funding within 48 hours. Rohith Bhat, founding president of TiE Mangaluru, reported that the organization has assisted 75 startups, with approximately 50 receiving funding through government programs and the remainder securing equity funding from angel investors. This growth in the startup sector could diversify the region’s economy and create new employment opportunities. You can learn more about supporting startups at The Indus Entrepreneurs (TiE).

Officials anticipate continued growth in the Mangaluru startup ecosystem, with ongoing support from both public and private sectors.