Blueprint for Circular Change: How Bengaluru and Nairobi Are Powering the Next Economy

As cities around the world struggle with mounting waste, shrinking natural resources, and the urgent need for sustainable growth, two fast-growing urban hubs, Bengaluru and Nairobi, are emerging as testing grounds for the next phase of economic transformation: the circular economy.

Launched on October 30, the Circular Venture Blueprint is a joint initiative by Climate KIC (Knowledge Innovation Community), GrowthAfrica, and SecondMuse. It seeks to equip entrepreneurship support organizations (ESOs) with stronger strategies and frameworks to help circular ventures grow into resilient and regenerative businesses.

This blueprint, co-created by 14 leading organizations through the Circular Economy Innovation Cluster (CEIC) in Bengaluru and Nairobi with support from the IKEA Foundation, distills years of field experience into an actionable framework. Drawing from on-the-ground collaboration with entrepreneurs, investors, and ecosystem builders, it identifies not just what circular ventures need to grow, but also how the wider entrepreneurial support system must evolve to meet those needs.

Circular ventures need fresh models of support and investment to grow and succeed. Yet, they continue to operate within markets, policies, and infrastructure built for a traditional linear economy that prioritizes consumption over regeneration. That is where Climate KIC comes in.

"Climate KIC was formed 15 years ago, and our main focus is on how to support different types of stakeholders to bridge the gap between climate commitments and actually reaching those commitments," said Eva Ros, Project Lead for Entrepreneurship Programmes at Climate KIC, headquartered in Amsterdam, Netherlands.

"In the last 10 years, we have expanded beyond Europe and have strong clusters in Latin America, and now here in Bengaluru. We are trying to include the learning that we've had so far and apply that to a system we are not so familiar with, by collaborating with local partners.

Circular Venture Blueprint: Three Foundational Principles

First, it emphasizes developing tailored capacities for circular ventures. Many early-stage founders struggle to articulate how their circular business models deliver distinct climate, social, and financial value in traditional market terms. By helping them translate this value for investors and customers who are used to familiar linear models, ESOs can unlock new pathways for funding and market access.

Second, it highlights the importance of building real ecosystem connections. Circular transformation cannot succeed in isolation; it requires collaboration across entire value chains. This includes suppliers, recyclers, informal workers, logistics partners, and even regulators. In practice, this means shifting from one-off incubator programs to ecosystem-level interventions that bridge sectors and support longer-term partnerships.

Third, the blueprint encourages organizations to turn monitoring into support. Rather than using reporting frameworks merely to track progress, ESOs can use performance data as a learning tool, for adaptive mentoring, peer collaboration, and knowledge exchange. This shift creates a feedback-driven environment where ventures and support organizations grow together.

Nowhere is this approach more urgent, or more relevant, than in Bengaluru. India's technology capital also faces one of the country's most complex urban waste challenges, generating over 6,000 tonnes of garbage daily. While policymakers and startups are working to develop scalable circular solutions, the path forward hinges on aligning innovation with local realities.

"We are the local implementing partner for Climate KIC for the entrepreneurship support program that they've been driving on. For example, we have been able to run accelerator and incubator programs where we have supported some 22 ventures working in the space of circular economy," said Manisha Bisht, Program Manager - Circular Economy Innovation Cluster at SecondMuse.

"These companies were not only at the stage of post-revenue already, like generating revenues, but also very nascent, very early-stage companies which are just at the ideation or the prototyping stage. So if this is something you are just passionate about, like solving a specific problem related to waste generation or waste management or waste prevention, then you have a solution."

Rethinking Growth for Circular Startups

Circular economy ventures follow a distinct growth path compared to typical tech startups. They prioritise long-term environmental and social impact over rapid expansion and rely on partnerships across value chains rather than individual customers. Traditional success measures such as revenue or job creation often fail to capture their true contribution. To enable these ventures to scale meaningfully, technical assistance programmes must move beyond generic support models and focus on customised, hands-on guidance that helps entrepreneurs communicate their circular value, build credible partnerships, and develop financially viable, impact-driven businesses.

"When impact enterprises talk to traditional VCs about the lives saved, carbon reduced, or mangrove forests protected, there's often a disconnect," said Tom Sebastian, Regional Director - Asia & APAC at Seedstars (a Swiss venture capital company investing in emerging markets). "The investor immediately pivots to questions about revenue and customer acquisition strategy, and that's where the conversation breaks down.

"This is fundamentally a communication gap and misalignment of priorities. What matters is creating a model where impact enterprises can demonstrate a clear path to profitability while delivering their social and environmental benefits. The impact needs to be built directly into how the business operates. The more you grow your business, the more positive impact you create. The more impact you create, the more your business grows. When you nail that connection, you become attractive to investors on both sides of the spectrum."

By defining a shared framework and language for circular entrepreneurship, Bengaluru and Nairobi are not only tackling their local environmental challenges but also offering the world a blueprint for systemic change. As the planet races to meet climate goals and resource pressures mount, initiatives like this mark the beginning of a more regenerative economic era, where innovation and inclusion power sustainability hand in hand.