Best Cities for Startups in India

Bengaluru, Delhi NCR, and Mumbai top the list

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The Indian cities with the maximum number of startup investment deals this year are Bengaluru, Delhi NCR, and Mumbai. While India’s Silicon Valley Bengaluru scored 296 on this list, Delhi NCR scored 192, and the financial capital landed 187 deals.

It comes as no surprise then that the top funded startups in the country, such as Ibibo, Bigbasket, and CarTrade, have also been founded in these cities.

Mumbai

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Mumbai boasts of Venture Capitals, such as Sequoia Capital India and Nexus Ventures Partners, which are big-ticket spenders on startups.  Moreover, Mumbai harbours one of the Indian Institutes of Technology, which is a constant source of talent for startups.

Some of the most successful startups in India come from Mumbai, for example, Just Dial, BookMyShow, Meru Cabs, and so on. However, an inefficient public infrastructure and extremely high real estate prices have forced startups to seek greener pastures like Bengaluru and Pune.

Bengaluru

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The Information Technology capital of the nation has the best technical talent available in India. A brilliant research and development sector, heavy hitters amongst investors, easy access to capital, supportive infrastructure, and economical real estate make it an ideal choice for startups to flourish.

Many startups that were founded in Mumbai have shifted to Bengaluru and achieved remarkable success. Flipkart, Ola. Swiggy, Big Basket, and Jabong are some worthy of mention. Kormangala is considered the startup paradise where Bengaluru is concerned.

Delhi National Capital Region (NCR)

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Delhi, Noida, and Gurgaon are business-centric cities. They attract the maximum entrepreneurs in the nation, especially in the north. Gurgaon and Noida have low rental costs and a consumer base which is distinct and varied, the two most attractive traits for a startup.

Some of the top funding investors, such as SAIF Partners and LightSpeed Venture Partners call Delhi their home. Startups founded in the e-commerce sector are doing exceedingly well in the city, for example, SnapDeal and Paytm.

What Are the Problems Faced by Startups in Small Towns?

  • • Very few of the startups established in rural areas attract big funding
  • • Usually, such areas have only a very specific consumer base and therefore lack the ability to grow exponentially
  • • The highly localised nature of the startups also hampers the creation of a competitive market
  • • Unavailability of infrastructure also doesn’t help when it comes to marketing and distribution
  • • The startups which do well are generally those which cater to the specific needs of the village/small town. Tea plantation, egg production, coffee plantation, and poultry farming are some of the startup ideas that fare well

In a now demonetised nation, the e–commerce sector can be very lucrative in such areas.

By Smriti Singh and Neerja Deodhar