Private equity (PE) and venture capital (VC) firms are rushing to clock investments in India’s tier 2 and tier 3 cities to address the shortage of equity capital being faced by the country’s micro, small and medium enterprises (MSMEs).
The development comes at a time when new-age startups in tier 1 cities are mired in controversies with news pertaining to valuation correction and mass layoffs surfacing almost every second week.