Indian startup landscape is witnessing a shift with respect to cities housing young entrepreneurs. Pune and Hyderabad are emerging as significant investment hotspots. A recent survey reveals investors are optimistic about these cities. The other cities to name here are Chennai, Jaipur and Ahmedabad. These are going to become the next major startup hubs. India currently has third-largest startup ecosystem in the world.
Chennai is leading the pack. The city raised $250 million in the first half of 2024. Pune follows closely with $241 million. Pune include Fibe’s $90 million funding round and Rebel Foods’ $13 million debt round. Hyderabad gained with $210 million through 26 deals. Ahmedabad and Jaipur-based startups raised $62 million and $47 million respectively.
The rise in funding reveals a significant improvement compared to the previous year. Chennai-based startups raised $211 million in 2023. Pune witnessed a similar figure. Hyderabad secured $129 million across 27 deals then. Ahmedabad and Jaipur raised $46 million and $8 million respectively.
It is to take note here that the country’s average in startup funding has slowdown. Indian startups raised $5.3 billion in the first half of 2024. The figure is down from $5.4 billion in the same period in 2023. However, the confidence of investors in these cities is still high.
Bengaluru is in leading and dominating position. Its startup has raised $1.57 billion through 134 deals in the first half of 2024. Mumbai follows closely with $1.49 billion from 91 deals.
The prominence of Bengaluru in the Indian startup ecosystem is historically entrenched. The city accounts for about 50% of the total startup funding in India. It has raised $70 billion over the past decade. Delhi NCR and Mumbai have secured $44 billion and $20 billion respectively during the same period.