Lucknow: In the long shadow of India’s established technology powerhouses such as Bengaluru and Hyderabad, a quieter but determined startup revolution is taking shape in the heart of Uttar Pradesh. Long known for its Nawabi culture, cuisine and colonial-era architecture, Lucknow is now steadily positioning itself as a serious contender in India’s fast-expanding $450 billion startup ecosystem.
As of 2025, Lucknow is home to over 400 technology startups, operating across sectors such as edtech, healthtech, fintech and agritech. At the state level, Uttar Pradesh has crossed 17,000 registered startups, marking a 300 per cent growth since 2020. With ₹1,000 crore in state-backed funding support and global technology players like IBM and InMobi announcing major investments, the question gaining momentum is whether Lucknow can evolve into India’s next major startup capital.
A Rapidly Expanding Ecosystem
Lucknow’s startup journey has moved swiftly from a nascent cluster to a structured ecosystem within five years. According to industry reports, the city’s growth has been powered by 72 incubators across Uttar Pradesh, strong policy backing and proximity to established hubs such as Noida, home to multiple unicorns.
Edtech and fintech lead the charge. In July 2025, edtech platform Just Learn raised $15 million through the IIM Lucknow Enterprise Incubation Centre, achieving a valuation of ₹120 crore. Hyperlocal news platform Knocksense, which originated in Lucknow, expanded to ten cities after bootstrapping its way to seed funding of nearly $200,000.
Funding volumes, though modest compared to Tier-1 cities, are rising steadily. While Bengaluru startups raised $5.7 billion in the first half of 2025, Lucknow-based ventures secured $4.29 million across 16 deals, a 40 per cent year-on-year increase. Analysts note that this upward trajectory reflects growing investor confidence in Tier-2 cities.
Talent and Affordability as Key Advantages
One of Lucknow’s strongest advantages is talent availability. A 2025 survey ranked the city as India’s top “skill capital,” with 79.45 per cent of youth assessed as job-ready, surpassing Bengaluru and Pune. Institutions such as IIM Lucknow, Dr. A.P.J. Abdul Kalam Technical University (AKTU) and engineering colleges linked to IIT Kanpur’s outreach programmes collectively produce nearly 50,000 engineers annually.
Lower living costs—estimated to be 30–40 per cent lower than Delhi-NCR—and strong family roots have encouraged many professionals to stay back. “Lucknow’s workforce is not just skilled, it’s stable. Attrition is far lower than in metros,” said Mohit Saxena, Co-Founder and CTO of InMobi, which announced a 300-seater AI Tech Centre in the city in November 2025.
Government Push and Infrastructure Growth
The Uttar Pradesh government has played a central role in accelerating this momentum. The Startup Policy 2020, updated in 2025, earmarked ₹140 crore for incubators, Centres of Excellence and ODOP-linked innovation ventures. Speaking at a national startup conclave earlier this year, Chief Minister Yogi Adityanath described Uttar Pradesh as an emerging “innovation tech hub,” pledging full policy and R&D support.
Infrastructure development is also gaining pace. Sify’s AI-Hub Data Centre became operational in June 2025, while HCL now employs nearly 10,000 professionals in the city. IBM is expected to establish dual facilities—a software lab and an innovation hub—adding to Lucknow’s growing IT footprint. Defence-tech synergies are emerging as well, with DRDO-linked units and BrahMos facilities strengthening deep-tech potential in areas such as Sarojini Nagar.
Startup Success Stories
Several homegrown startups have demonstrated scalable models. HealthTokri, a telemedicine platform, crossed one million users and raised $2 million to expand rural healthcare services. TechEagle, a drone logistics startup, partnered with Swiggy for last-mile delivery pilots after raising $5 million in Series A funding. Vernacular edtech platform Bunni Education and AI-based interview tool Mockey have both achieved rapid adoption and early profitability.
Challenges on the Road Ahead
Despite progress, challenges remain significant. Venture capital funding is still heavily skewed towards Tier-1 cities, and perception gaps continue to deter large investors. Nearly 35 per cent of engineering graduates from Uttar Pradesh migrate to metro cities for higher pay and exposure. Connectivity upgrades, including airport expansion, are still underway, while mentorship networks remain thinner than in Delhi-NCR or Bengaluru.
Industry experts caution that idea validation and market access are crucial. “Startups must solve industry-defined problems. Without that alignment, innovation struggles to scale,” said Arvind Kumar of the Software Technology Parks of India (STPI).
Looking to the Future
The outlook, however, remains optimistic. In November 2025, the Lucknow Development Authority approved a 2,800-acre IT City, scheduled to launch in January 2026. Along with a 70-acre AI City and a 1,500-acre Aerocity, the projects are expected to generate 50,000 jobs by 2030.
Lucknow may not dethrone Bengaluru overnight, but its blend of affordability, talent, policy backing and emerging infrastructure positions it as a strong “affordable innovation hub” for the next decade. As the city balances its cultural legacy with digital ambition, the Nawabs’ capital appears ready to code its next chapter in India’s startup story.
