Bangalore has been a favourite place for startups. There are several SaaS startups in Chennai. However, these days it is not necessary to rely on metros and A class cities to set up startups. You can set up startups at Tier II and Tier III cities. It makes opportunities available there and leads to expansion of these places. Many SaaS startups have been set up in smaller cities, say Jaipur, Kochi and Coimbatore. Surat and Indore too have been selected for setting up SaaS startups. Such places have real estate available at reasonable cost. They have good internet access. There are engineering colleges around. All these facilitate the setting up of software and SaaS firms. Thiruvanthapuram too is an attractive destination for startups. It houses the oldest tech park. It is true that the market for these startups is in cities.