India’s startup scene is booming, and entrepreneurs from all parts of India are playing a crucial role in it. What makes the Indian startup ecosystem unique and different from other parts of the world is the prevalence of a wide variety of cultures and societies here, and each with its advantages and limitations.
After all, one should not forget that India is an ethnically and religiously diverse nation. The infrastructure, property rates, talent, and funding options are all different across India.
Here are the top 5 cities in India for startups.
Top Cities in India for startups
Bangalore has become one of the most important startup hubs not just in India but all over the world. The city attracts some of the brightest minds from all over the country. A supportive government, affordable real estate, well-established investors and mentors, a variety of funding options for new startups, tech-savvy population, and high-quality talent are all responsible for the phenomenal rise of Bangalore as an ideal startup city in India.
Bangalore is home to some of the best-known unicorn startups in India, including Ola, Myntra, BigBasket, Flipkart, InMobi, and Freecharge, to name a few.
2. Delhi NCR
Delhi NCR has emerged as the startup capital of India. As India’s largest startup ecosystem, New Delhi NCR has witnessed ten unicorns and over 7000 startups in the last decade. It also boasts of some of the most valued startups in the country with a cumulative value of more than $50 billion, which is even more than that of Bangalore (approximately $35 billion) and Mumbai ($12 Billion).
Around 70% of Unicorn startups in the Delhi NCR region are B2C companies.
Mumbai comes third in our list. Mumbai is the financial capital of India, and that is fueling the startup growth in this ‘city of dreams’. However, the city is riddled with numerous problems like poor infrastructure and sky-high real estate prices. Despite these roadblocks, many noteworthy startups, such as Cleartrip and housing, have made Mumbai as their preferred base. Mumbai is home to the country’s 16% startups, and a majority of these are Cloud and SaaS-based companies.
Nicknamed as ‘Detroit of Asia’, Chennai is ranked at number four. Chennai has always been a well-renowned manufacturing city in India. Some of the most prominent players in this area include BMW, Ford, Mitsubishi, and Hyundai.
Over the years, it has successfully transformed itself as a startup destination for software (SaaS) related companies. It hosts some extremely successful SaaS startups like ZOHO, Unmetric, and FreshDesk, to name a few.
Chennai still lags behind Mumbai and Bangalore when it comes to investor funding. However, Chennai is striving to overcome this by increasing the number of incubation centers.
Famed as the “pearl city of India,” Hyderabad is home to 8% of startups in the country. Even though many companies had to shift their base, the city still has some of the biggest tech giants, including Tata Consultancy Services (TCS), Facebook, Microsoft, and Infosys. With the highest number of Special Economic Zones (SEZ’s) in the country, Hyderabad has long been a preferred startup destination for new entrepreneurs.