'Beyond Bengaluru' bears fruit: Incubation centres kickstart startup ecosystem in Hubballi-Dharwad

Hubballi: Over the last 13 years, Hubballi-Dharwad has witnessed the rise of eight incubation centres that have mentored around 1,000 startups, including 172 which continue to function from these facilities.

Since 2012, both government-funded and private institutions have set up incubation centres with an aim to encourage entrepreneurship among students and young professionals.

With many agriculture-based and information technology-driven startups mushrooming in the state’s second biggest city, several students from north and central Karnataka are finding jobs at these start-ups.

At least four of the startups that took birth here have gone on to record an annual turnover of over Rs 100 crore.

According to Vinayak Hosamani, additional director of KLE-Centre for Technology Innovation and Entrepreneurship, which was among the first to start an incubation centre here, says along with central and state governments, even private firms have started several schemes to fund startups.

“In tier-two cities like Hubballi-Dharwad, we need a strong ecosystem that not only encourages startups, but also attracts industries to the region,” he says.

Elevate programme, an initiative of the Karnataka Innovative and Technology Society (KITS) of the department of electronics, IT and BT which identifies promising startups and helps them through funding or mentorship at various stages, has also benefited the budding entrepreneurs.

Under Elevate-100 programme, 69 startups in the twin cities over the last five years have received Rs 15.39 crore.

A senior officer at KITS says the incubation centers in the twin cities have been working towards strengthening the startup ecosystem.

“A good number of startups and big companies have already set up shop in Hubballi,” the officer said.

DocketRun Tech founder Ajay Kabadi said his IT solutions were being used at several big firms including Tata and JSW.

He said like many budding engineers, his dream was to get a placement in one of the MNCs.

However, after participating in one of the programmes regarding startups, he realized that it was better to become an employer than an employee.

“Hubballi is an ideal place for startups as it has less traffic congestion and cost of production is comparatively less. While my products are manufactured here, my sales teams in Bengaluru, Pune and other places are helping me expand the business,” he said.

Huchcha Reddi of Raichur, who has been working in a startup for the last six years, says compared to metro cities, the cost of living in Hubballi is less and it is nearer to his hometown.

Hubballi-Dharwad central MLA Mahesh Tenginkai said while the region was Karnataka’s second largest city in terms of area and population, it did not yet have large-scale industries. As a result, many young people migrate to metropolitan cities in search of jobs.

“If industries are set up here and startups are given the necessary funding, youth will come forward to start their own businesses and provide employment opportunities within the region,” he said. 

IT Minister Priyank Kharge said that during his earlier tenure as IT Minister in 2017, he had taken measures to encourage startups beyond Bengaluru.

“Now, the results are visible in Hubballi. Karnataka’s IT exports stand at Rs 4.5 lakh crore, of which Hubballi-Dharwad contributes Rs 3,500 crore and Belagavi Rs 3,000 crore,” he said.

He said it took 35 years for Bengaluru to grow as an IT hub. Similarly, it will take time for other cities to build their own ecosystems.

“With the Beyond Bengaluru programme, the focus is on retaining local talent and creating employment opportunities. Karnataka already has policies and schemes in place, success depends on all stakeholders working together,” he said.