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From Ajmer to every tier 2 city: Why India's experience economy is moving beyond metros
With 70% repeat customers, it aims to expand its successful model to other Tier 2 cities, emphasising local engagement.
For years, premium hospitality experiences in India have largely been associated with metropolitan cities.
The biggest concerts happened in Mumbai. The most ambitious hospitality concepts launched in Delhi. The strongest creator communities emerged in Bengaluru.
However, this trend appears to be changing.
As rising incomes, social media, and experience-led consumption are contributing to the emergence of Tier 2 cities as important cultural and consumer markets. .
Businesses and national brands are increasingly taking note of this shift. Consumers are showing a greater willingness to spend on experiences without travelling to larger cities. And local communities are creating demand that were previously considered underserved.
One example comes from Ajmer, Rajasthan, where more than 350 people queued outside a venue on a Tuesday evening.
There was no celebrity appearance.
No opening-night discount.
No influencer campaign.
According to the founders of the venue, the turnout came without major promotional activity.
The venue was Karma Social.
For founders Deepanshu Mathur and Priyanka Anant Jadhav, the turnout reinforced the founders' view of demand in the city.
"The opportunity was always there," Deepanshu said during a recent conversation on The Success Playbook, a business podcast hosted by Jatin Solanki, Co-founder of Expertrons and Scale100x.ai. “There were people ready to spend. People are ready to experience something new. Everybody was complaining. Nobody was building.”
Founded in Ajmer, Karma Social was built on the premise that consumers in smaller cities were looking for more than food and beverages. They were looking for experiences.
Deepanshu brought a background in music, entertainment, creator culture, and live events, while Priyanka focused on operations and execution. Together, they developed a hospitality concept that combines food and beverage offerings with live entertainment.
"We never invested only in food. We invested in people."
The founders said this approach has helped the venue build a loyal customer base.
Over the years, the brand has hosted more than 70 national and international artists and attracted crowds of over 2,000 attendees at flagship events. The company says it has partnered with brands including Seagram's, while Kingfisher and Carlsberg have sponsored some of its events.
The company says around 70% of its customers are repeat visitors.
In a category driven by novelty, repeat attendance is one of the clearest indicators of customer engagement.
Even though hospitality brands largely viewed Tier 2 cities as expansion markets, the founders say they chose to build the business in a Tier 2 city.
The company is now expanding through a franchise-led model supported by centralised operations, marketing, artist sourcing, and training.
The objective is to replicate the operating model developed in Ajmer rather than simply opening new venues.
"If someone wants to build Karma Social in their city, the first thing I look at is not their business profile," Deepanshu said. "I look at their intention towards their city."
The founders believe Tier 2 cities will play a larger role in India's experience economy.
They argue that smaller cities are increasingly contributing to demand for experience-led businesses.
"I want to see Karma Social in every Tier 2 city. A place for every Tier 2 person."
The company's experience in Ajmer reflects broader interest in experience-led hospitality beyond metropolitan markets.
Note to the Reader: This article is part of Hindustan Times' promotional consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content.
