The best cities to startup in India

The best cities to startup in India

Monday October 17, 2016,

4 min Read

If you’re thinking of starting up, your first thought might be to do so in your hometown. But there are a few factors to consider if you want the right environment for your business to prosper. Startups have the best chances of survival in cities that have good funding, growing infrastructure, a flourishing domestic market and a pool of promising talent. If you think your city doesn’t meet these expectations, consider looking into these:



Bengaluru is India’s largest IT service provider, with tech giants like Infosys and Wipro headquartered here. This makes the city a laudable source of engineering and analytical talent – a necessity for any startup. Thanks to its infrastructure, it has seen the inflow of more technical talent than any other Indian city. In fact, Bengaluru once reported a 13 percent higher inflow of new technical talent than the original Silicon Valley.

The success of startups like Flipkart and Ola(started in Mumbai ad later shifted to Bengaluru), which are now valued at $15 billion and $5 billion respectively, has convinced many startups that Bengaluru is the place to either begin or move their business. Many startups that were originally based elsewhere have moved to Bengaluru for its tempting startup ecosystem. Moreover, Bengaluru has a relatively cheaper real estate, making life that much easier for a startup. A rich social life,amicable weather and the title of a cosmopolitan cityare factors that make starting up in Bengaluru a rewarding experience – both in terms of capital returns and satisfaction.

Delhi (NCR)

Delhi (NCR) has always drawn attention from all businesses corresponding to Northern India. Therefore, as an entrepreneur you can expect a lot of activity in this city. With a strong hold on telecommunications, media and tourism, Delhi is the heart of startup conferences and meets. This creates abundant opportunities for entrepreneurs looking to build their business networks.

A noticeable trait of Delhi is the high concentration of e-commerce startups. Snapdeal, Paytm and Shopclues are some noteworthy mentions. This means a rich startup ecosystem for e-commerce businesses but more importantly, it means opportunities for tech-centred startups to pitch their tents. Zomato and Hike messenger are other examples of startups from Delhi that quickly climbed the success ladder. When one surveys the high success rates of startups in this city, one gets an idea of the strong founder-investor relationship. To validate this, Delhi NCR received the highest funding in India for the year 2016 with a whopping $1.12 billion out of a total $3.15 billion so far. Considering these prospects and its vibrant and youthful community, Delhi makes an attractive spot for entrepreneurs.


Mumbai is the most populated Indian city, so as a startup founder you can expectample talent and potential customers. With big players like L&T and Tata Group, and financial organisations like RBI and SBI,it takes on the title of India’s commercial and financial capital. This makes Mumbai a reliable city for entrepreneurs looking for big investors. Cleartrip, BookMyShow and JustDial are few of the success stories that Mumbai has witnessed.

Powai valley has been gaining the reputation of a startup hub in the city – and rightfully so. With a talent source like IIT Mumbai generously feeding it, this suburban neighbourhood is a concentrated concoction of new startups. Because of its esteemed training, IIT Bombay has seen its alumni become founders of startups like Ola and Toppr. This goes on to show that Mumbai has no shortage of talent to fuel burgeoning startups.

Cities like Chennai, Hyderabad, Pune and Ahmedabad are other places to look out for while deciding a startup location. These cities saw an increase in startup activity when startups from Bengaluru, Mumbai, and Delhi dropped out to find more economical alternatives. Since then, chiefly Chennai and Hyderabad have grown as startup ecosystems, what with Hyderabad’s impeccable infrastructure and Chennai’s academic bred talent.These cities will soon have their own, sustainable startup culture that might just turn the tables around.

To choose an ideal city for your startup, it’s necessary to trace back to the basics: the goal of your startup, your target audience, your finances and your resources. With this information, finding a city with the right investments, infrastructure and talent, and knowing which of these to prioritise,will be a less foggy affair.