Kolkata’s startup story rewritten: ‘Lower attrition, higher hunger,’  says Dot & Key founder Suyash Saraf

Kolkata — long seen as outside India’s dominant startup corridors like Bengaluru, Mumbai and Delhi — is steadily carving out a distinct identity in the country’s entrepreneurial landscape. Founders building from the eastern metropolis say the city offers a unique mix of advantages that, while different from larger hubs, can be powerful for long-term company building.

Speaking on a podcast with Raj Shamani, Suyash Saraf, founder of Dot & Key and Hyperscale Venture, outlined both the challenges and hidden strengths of building a startup in Kolkata.

Saraf said the city’s biggest limitation is access to experienced startup talent. Unlike more mature ecosystems where companies can hire professionals with prior startup exposure, Kolkata requires founders to build teams largely from scratch.

“The biggest disadvantage was talent,” he said, noting the difficulty in finding pre-trained professionals who can immediately contribute to scaling businesses.

However, Saraf believes this constraint can become a defining strength. According to him, Kolkata offers a pool of younger, highly motivated individuals who, when given direction and purpose, can evolve into strong, loyal contributors.

“You need younger, hungrier folks… you can give them purpose and build homegrown talent,” he said, adding that such teams often outperform expectations due to their commitment and alignment.

A major advantage, he emphasised, is significantly lower attrition. While startup hubs often face churn rates as high as 30-40%, Kolkata sees far greater employee retention.

“People don’t leave very easily. That’s a big, big advantage,” Saraf said, highlighting how stability helps companies scale more efficiently without constant rehiring.

He also pointed to the city’s relatively distraction-free environment. In contrast to high-pressure ecosystems like Mumbai and Delhi — where venture capital expectations and peer noise can influence decision-making — Kolkata allows founders to operate with clarity.

“There is so much noise that you cannot form your own opinion,” he said about larger hubs, adding that Kolkata enabled his team to focus on first-principles, consumer-first thinking.

Saraf credited this approach for his company’s growth, revealing that with just ₹1 crore of personal investment, they scaled the business to a valuation of ₹6,000 crore.

]Beyond immediate advantages, Saraf stressed the importance of long-term ecosystem building. Drawing parallels with Silicon Valley, he said sustainable startup ecosystems are built over decades through continuous talent development.

“Silicon Valley also started with one early startup… you nurture the team, train the team, and over 30–50 years, you build Silicon Valley,” he said, adding that Kolkata could follow a similar trajectory if founders invest in people.

He also underlined that strong brands are built on sharp positioning — selecting the right demographic, geography and consumer spending behaviour. In a crowded market like skincare, he noted, deep engagement rather than mere presence differentiates successful brands.

Reflecting on his journey, Saraf said Kolkata played a critical role in shaping his company’s growth.

“I feel that I would not have built this in any other city in India,” he said, calling the city “underrated” in startup conversations.

As more founders echo similar sentiments, Kolkata’s startup narrative appears to be shifting — from a perceived limitation to a city where focus, loyalty and long-term thinking may offer a competitive edge.