From paddy fields to high-rises: This city is winning the hearts of startup players
Gurugram is now the fourth largest startup hub in India with nearly 1,500 startups, behind Bangalore, Mumbai, and Delhi.
Hosting the behemoths of the Indian startup industry, the city has moulded itself into a perfect blending station of aspirations.
It houses some of the highest valued startups of India, including Oyo Rooms, Mobikwik, Zomato, Urban Clap, Shopclues, Delhivery, and MakemyTrip, among others.
According to Vineet Singh, CBO of Mobikwik and Rahul Narvekar of The India Network, Gurugram’s startup ecosystem is the most diverse, dynamically evolving and standardised ecosystem in India. It covers almost the entire spectrum of consumer internet, logistics, fintech, food-tech, AI, Big Data, and other online and offline sectors.
Gurugram’s growth story is the story of rising India.
Key reasons why entrepreneurs choose to start up in Gurugram
One of the most important factors that enhance the attractiveness of Gurugram to start a business is lower real estate costs compared to Bangalore, Delhi and Mumbai, despite being adjacent to the national capital.
A large and young middle-class consumer base, world-class infrastructure, access to investors, and availability of diverse talent pool are some other factors that enhance the attractiveness of the city.
With so many medals on its uniform, no wonder Gurugram is now the fourth largest startup hub in India with nearly 1,500 startups, behind Bangalore, Mumbai, and Delhi.
Smita Bhagat, Head - Branch Banking, Government Business and E-commerce, HDFC Bank says, “We have seen an increase in the need for startup-friendly products as they have unique banking needs. It is important to create solutions that evolve as the startup grows. We are a very startup friendly bank and have dedicated branches to handle banking needs of startups. We are confident that the customised solutions we offer as part of SmartUp, our offering for start-ups, will help nurture innovation in Gurugram.”
The Haryana government is acting as a catalyst to the phenomenon
- Under the leadership of Vipul Goel, Cabinet Minister and incharge of Ministry of Industries and Commerce, the Haryana Govt. is taking significant steps to boost entrepreneurship:
- Rs 1500 crore to be invested in the incubation and startup ecosystem
- 22 technology/business incubators/accelerators to be established in each of the different sectors in every district of Haryana
- 1 million sq ft of incubation/common office space to be developed
- Venture Capital funding of a minimum of Rs 200 crore to be facilitated
- Collateral free loans of up to Rs 1 crore for startups
- Rs 1000 crore fund for MSME loans
Investors happy to see flow of deals
Being the youngest among its peers, it is not a surprise that the city is the blue-eyed boy of VCs who pumped in over $1Bn into Gurugram-based startups in 2015, accounting for nearly 30 percent of total startup funding in India.
Ravi Kaushik of WaterBridge Ventures says, “We are receiving good quality startup investment opportunities from Gurugram, and are on the hunt to meet more great entrepreneurs from across India. We have seen the Gurugram start-up ecosystem evolve over the last five years. The chances of materializing any deal stands very good here,” added Girish Shivani of Yournest Angel Fund.
Gurugram startups coming together for Captialize 2.0 on 12 th Jan 2018. For details visit: http://venturegarage.in/events/capitalize-2-0-learn-network-pitch-for-funding/
Disclaimer - YourStory.com is the Media Partner for Capitalize 2.0.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)