Mangaluru: Emerging as one of Karnataka’s most promising technology hubs, Mangaluru is steadily strengthening its position as an alternative destination for Information Technology (IT) companies and Global Capability Centres (GCCs). Industry leaders say the city’s growth has largely been driven by private sector investments, with entrepreneurs and businesses taking the lead in building the ecosystem even before substantial government support materialised.

Private sector drives technology growth

Technology entrepreneurs believe Mangaluru’s transformation into a technology hub has been powered by sustained efforts from private companies willing to invest in the region’s potential.

Rohith Bhat, founder of Mangaluru-based Wrkwrk and a key figure in attracting IT companies to the city, said regional technology hubs require long-term commitment and strategic planning to become viable alternatives to Bengaluru.

According to him, private players have played a crucial role by developing IT infrastructure, co-working spaces and business ecosystems that encourage companies to establish operations outside major metropolitan centres.

“Developing regional technology hubs requires sustained effort and convincing larger firms to diversify their areas of operation,” he said.

Employment opportunities double in three years

The city has witnessed significant growth in the technology sector over the past few years. Industry estimates suggest that nearly 40 IT companies have established offices in Mangaluru during the last two years.

Private sector investments have helped double employment opportunities from around 15,000 to 30,000 jobs over the past three years. The expansion has also led to the creation of more than 5,000 co-working seats across the city, with industry stakeholders expecting this figure to double within the next three years.

The growth has provided new employment opportunities for local talent while reducing the need for professionals to relocate to larger cities in search of technology careers.

Silicon Beach Programme boosts expansion

The Silicon Beach Programme (SBP) has emerged as a key initiative supporting the city’s technology ambitions. One notable success story is Entrupy, which established its Mangaluru office in September 2025 through the programme’s BaseCamp initiative.

The initiative assists technology companies in setting up operations in the city by providing support and facilitating local integration.

Entrupy’s Head of People Operations, Vishal Kanchan, said the company was attracted by the opportunities available in Mangaluru and the support offered through the programme.

Following its launch in the city, the company has expanded steadily and now employs more than 40 people at its Mangaluru office.

Building a strong technology ecosystem

The foundation of Mangaluru’s technology ecosystem was laid with the establishment of Infosys’ software development centre in Kottara. Since then, the sector has expanded considerably through collaborative efforts involving government agencies, industry organisations and entrepreneurs.

A major boost came through the Karnataka Digital Economy Mission (KDEM), which facilitated the launch of around 50 start-ups under the Beyond Bengaluru Start-Up Grid initiative.

The ecosystem has further grown through contributions from organisations such as The Indus Entrepreneurs (TiE), Silicon Beach Programme, KDEM’s Mangaluru cluster and Vertex Workspaces.

Today, the coastal region’s technology ecosystem includes more than 400 start-ups, over 250 technology companies and upwards of 25,000 professionals working across various segments of the industry.

Data centre potential strengthens investment appeal

A recent KDEM Mangaluru Data Centre Feasibility Study 2025 identified the city as one of India’s most cost-efficient and scalable destinations for data centre development.

The study highlighted significant cost advantages, including land leasing rates of approximately Rs 7.69 per square foot per month. This offers a four to five times cost advantage compared to Mumbai and up to 95 per cent savings when compared to Chennai.

The report also noted competitive energy tariffs ranging between Rs 5.95 and Rs 6.60 per unit, lower than those in several major data centre markets. These factors position Mangaluru as an attractive destination for companies considering large-scale infrastructure investments.

Vision for two lakh technology jobs

Industry stakeholders have outlined ambitious plans for the region’s future growth. The Silicon Beach Programme’s 10-year vision aims to promote entrepreneurship, attract satellite offices of major companies and generate up to two lakh jobs in the coming years.

Supporting this vision, the Karnataka government has announced several infrastructure projects, including an IT park with a 1.5 lakh sq ft plinth area at Derebail. Plans also include a Centre of Excellence focused on fintech innovation and a dedicated data lab.

KDEM is expected to conduct feasibility studies to support the implementation of these projects and further strengthen the region’s digital economy ecosystem.

Future outlook remains positive

With growing private investments, increasing employment opportunities and planned infrastructure projects, Mangaluru is steadily establishing itself as a key technology destination in Karnataka. Industry experts believe continued collaboration between government agencies, entrepreneurs and technology firms will be crucial in transforming the coastal city into a major IT and GCC hub capable of complementing Bengaluru’s dominance in the sector.