India ranks 19th amongst Top Global Startup Hubs in 2021: Report

In 2021, StartupBlink Report ranked India at 19th amongst top 100 startup hubs on metrics such as number of startups, traction of the ecosystem’s top startups, among other economic indicators.The same report had ranked India at the 48th position in 2020.

On the other hand, as per the Startup Ecosystem Report 2022, Bengaluru (8), Delhi NCR (13) and Mumbai (17) were among the top 20 most promising startup hubs.

However, the Indian startup ecosystem received a big boost in the last 18 months. Startups including Mensa Brands , GlobalBees and apna joined the unicorn club in less than two years of starting operations. Since the start of 2021, India has produced 60 unicorns.

Of the 102 unicorns in the country, Bengaluru alone is home to 40 of them. Bengaluru-based startups raised $5.7 Bn across 167 deals during the March quarter of 2022 alone.

Acc. to the Economic Survey 2021-2022, the total number of startups recognised under the Startup India initiative has now grown to 61.4K (as of January 10, 2022) and these startups have created over 600K jobs. In 2021, 11 tech companies and startups went for public listings and raised over $7.36 Bn through their initial public offerings (IPOs).

India has the second-highest number of cities as promising startup hubs in the global top 20, a number it shares with China only behind the US. Bengaluru was ranked the highest in India and third-highest in the Asia Pacific, while it is ranked eighth globally. Delhi NCR was at the second spot in India, fourth in the Asia Pacific and 13th globally, as per the report.

A lot of reports have described Bengaluru as one of the world’s fastest-growing tech hubs. The city is home to close to 11K startups and is also a growing R&D hub for tech giants such as Amazon, Microsoft, and Meta, among others.Some of the bigshot Indian startups that have made a mark globally are from this city, including the likes of Swiggy, Vedantu, and Ather Energy.

The Karnataka government was among one of the first Indian state governments to establish a dedicated Startup Cell to promote the startup ecosystem and provide early stage funds and proof of concept grants, besides setting up a startup incubation centre. The Karnataka government also provides seed funding of up to INR 50 Lakh to startups in the state.

Bengaluru has also emerged as the forerunner for talent across the country and now, the state government is looking to build a set-up so that more Intellectual Property Rights (IPRs) are developed and registered in the state.

Delhi & Mumbai Rising Through The Ranks

Delhi is home to close to 10K startups today, with over 5K startups added in 2021. In Q1 CY22, Delhi NCR was at the second spot in terms of funding, bagging $1.9 Bn across 123 deals. Mumbai-based startups raised $1.4 Bn in funding across 77 deals.

The state governments have been working to take startups to Tier 2 and 3 cities as currently most of the startups are concentrated in Delhi, Bengaluru and Mumbai.

However, Hyderabad, Chennai, Pune and Kochi are rising through the ranks to compete with the established startup hubs. According to Inc42 data, startups from Chennai raised $1.1 Bn across 26 deals in Q1 CY22, a YoY increase of 473%. Chennai is only fourth in the line after Bengaluru ($5.7 Bn), Delhi NCR ($1.9 Bn) and Mumbai ($1.4 Bn) in terms of funding raised. The city also minted two unicorns during the quarter – CredAvenue and Uniphore.

Chennai has been rising slowly and steadily with the support from the city’s regional entrepreneurship promotion cells and the support of the Tamil Nadu government. The state’s finance minister Palanivel Thiyaga Rajan recently announced an INR 50 Cr Emerging Sector Seed Fund and the establishment of Tamil Nadu Industrial Development Corporation (TIDCO) for INR 75 Cr.

Pune and Hyderabad also surprised the startup ecosystem during the first quarter of the calendar year 2022, showing a 653% and 329% YoY increase in funding raised, Inc42 reported.

Kerala’s Kochi, on the other hand, has been rising steadily, making its mark in the startup ecosystem with the support of the state government. Kerala has earmarked INR 22,500 Cr to promote entrepreneurship.

(Excerpts from an INC42 article and various reports)