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Chennai loses startup to Bengaluru, founder says ‘move was inevitable’ due to climate, thriving ecosystem

Mixed reactions came from Chennai over the relocation of startups to Bengaluru, with some suggesting better support for startups. 

Published on: Oct 1, 2025, 13:36:01 IST
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Chennai-based startup Fragaria, is relocating its headquarters to Bengaluru, founder Harish Varadharajan announced in a viral post on LinkedIn/X.

The founder Varadharajan emphasized that Chennai will remain the startup’s first home, (Source: DSMax)
The founder Varadharajan emphasized that Chennai will remain the startup’s first home, (Source: DSMax)

“In Chennai, we gave it our all, building a global product and cultivating strawberries against all odds. But the climate, market access, supportive agriculture laws, expat livability, and Bengaluru’s thriving startup ecosystem have made the move inevitable,” Varadharajan wrote.

While the company’s R&D farm will remain in Chennai, the relocation has reignited discussions about the challenges Chennai faces in retaining high-growth startups despite having talent and infrastructure.

(Also Read: Bengaluru gets 124.5 crore boost for pedestrian paths, traffic revamp, green spaces: Report)

Read his full post here:

The post has drawn mixed responses, reflecting both support for startups and criticism of the reasons cited for moving:

Some residents have pushed back on the “climate” reasoning, pointing out that Chennai enjoys sea breezes most mornings and evenings, with extreme heat limited to April and May. “Honestly, Chennai already has the talent and infrastructure. Maybe we should focus on building better startup support here instead of losing companies to Bengaluru,” one user commented.

Others expressed frustration over Chennai losing startups despite investments in education and infrastructure. “Yet another Chennai-based startup moves to Bengaluru. We are investing heavily in our education, just for Bengaluru to reap the benefits,” one professional noted.

Several voices highlighted that Bengaluru’s edge lies not only in livability but also in liberal policies supporting startups and innovation. “I’ve told politicians again and again, stop living with your heads in the clouds. Chennai is at a disadvantage, and yet even with Bangalore’s traffic and dull lifestyle, it still wins on liveability. High-paying startups are moving out, young talent is leaving. You want them to only continue low-paid work for factories?” wrote another user.

Some suggested relocating startups to other cities in Tamil Nadu to counter the trend. “Maybe move the capital to Coimbatore to stop these complaints about climate. Look at Pune’s growth in the last five years. Kovai has similar potential with tourist spots like Ooty, Kodaikanal, and Munnar,” one commentator said.

Varadharajan emphasized that Chennai will remain the startup’s first home, and the R&D farm will continue operations there, leaving the door open for future initiatives in Tamil Nadu.

(Also Read: Bengaluru Yellow Line Metro gets 5th trainset, frequency to improve to 15 mins: Report)

  • Anagha Deshpande
    ABOUT THE AUTHOR
    Anagha Deshpande

    Anagha Deshpande is Deputy Chief Content Producer at Hindustan Times. She is currently part of the news team. Before moving into this role, she worked with the Bengaluru desk, where she extensively covered civic issues, Karnataka politics, infrastructure, and urban governance. Over the past seven years, Anagha has worked across multiple facets of digital journalism, including reporting, editing, and video production. She briefly stepped away from journalism, only to realize that the newsroom is where she has the most fun. Her interests lie in tracking national and state politics, particularly South Indian politics, as well as social issues and public policy. She has previously worked with Deccan Herald, Mid-day, The Federal, and ThePrint, and has lived and worked in Mumbai, Delhi, Bengaluru, and Chennai. When she isn't chasing stories, Anagha enjoys long aimless walks, reading, hiking, discovering new teas, and, by her own admission, overthinking almost everything.Read More

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