Data from the Greenr Sustainability Acceleratorby TechnoServe, supported by the IKEA Foundation and Visa Foundation, indicates an interesting perspective wherein India’s climate entrepreneurship landscape or India’s climate innovation is not restricted to Tier-1 cities. Across three cohorts, the program has supported 300+ small and growing green businesses (SGBs) spanning 106 cities in 28 states. Of this, nearly 45% of the startups come from Tier-2 and Tier-3 cities, signalling the growing decentralisation of climate innovation in the country.
Notably, 60% of these enterprises are focused on addressing India’s waste management challenges, highlighting the critical role played by entrepreneurs from smaller cities in tackling some of the nation’s most pressing environmental issues. These startups are driving innovation across critical segments within each sector. For example, in waste management, key sub-sectors include e-waste, wastewater management, plastics recycling, upcycling, and the development of green construction materials from agricultural waste among others. The data specifically identifies waste management, agroforestry, textiles, and energy as the top four emerging sectors for climate innovation, showcasing a diverse entrepreneurial landscape across India. Their work complements national priorities including Swachh Bharat (Urban) 2.0, Extended Producer Responsibility (EPR) for plastics, and Mission LiFE’s circularity goals, reinforcing India’s commitment to sustainable growth.
The strategic support provided by the Greenr Sustainability Accelerator is translating into tangible results. Over the past two cohorts, Greenr-backed startups have demonstrated an impressive 61% average revenue growth and contributed to a 24% increase in job creation. To further fuel this growth, the program has facilitated over $16 million in funding, structured across 55% equity, 35% debt, and 10% grants, enabling these green businesses to scale their solutions and maximize their impact.
This entrepreneurial surge is largely driven by a new cohort of founders, with a majority having less than five years of business experience, underscoring the rise of fresh entrepreneurial ecosystems beyond traditional startup hubs. Reinforcing this shift, 60% of the Greenr-supported businesses are women-led, showcasing significant female leadership in India’s climate action. This vibrant ecosystem is particularly prominent in a diverse set of Tier 2 and 3 cities including Jaipur, Bhubaneshwar, Surat, Indore, Coimbatore, Kochi, Guwahati, Madurai, Dehradun, and Bhopal, which collectively represent the top 10 cities for Greenr-backed innovation.
Ajay Menon, Senior Practice Lead at TechnoServe India and Program Director, Greenr Sustainability Accelerator, says: “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.”
A prime example of this success is Plastroots from Nagpur, Maharashtra. This zero-landfill waste management company provides end-to-end dry waste solutions and circular economy models for communities, governments, and industries. Founded in 2019, Plastroots directly addresses the challenge of unsegregated rural waste, where nearly 75% often goes unmanaged by structured systems. With Greenr’s support, Plastroots successfully scaled its Extended Producer Responsibility (EPR) compliance vertical, generating over ₹3 crore in revenue within 12 months, achieved 5x business growth, and expanded operations across Maharashtra, Chhattisgarh, and Rajasthan.
