New-age cos chase gold far from the city centres

A new wave of urban-focused consumer technology and lifestyle brands is pivoting toward smaller Indian towns, following the path of established auto and consumer goods giants, as rising incomes and digital adoption fuel a new phase of growth outside major metros.

- Ayaan Kartik & Nehal Challa wala

Rising incomes fuel growth outside metros.

(BLOOMBERG)

Executives and independent experts say the shift is driven by accelerating consumption power and a convergence of aspirations in Tier 2, 3, and 4 cities, which are now becoming key markets for electric vehicles (EVs), digital-first retail, quick commerce, and organized jewellery.

The trend underscores a strategic evolution for recently listed and venture-backed companies, including electric scooter maker Ather Energy and eyewear retailer Lenskart, which have seen growth plateau in saturated urban centres.

Electric two-wheeler adoption has shown surprisingly strong traction beyond the top 10 cities, according to Ather Energy co-founder and chief executive officer (CEO) Tarun Mehta.

“Not the top 10 cities, but maybe the next 500 cities,” Mehta said, noting these areas have achieved the "highest EV penetration and also the fastest" pace of adoption. “Smaller cities are embracing electric super fast. So, it's only obvious for us to go there really rapidly.”