The Indian startup ecosystem is not just confined to the traditional hubs of Bengaluru, Delhi NCR and Mumbai. Smaller cities like Hyderabad, Pune and Chennai have emerged as powerful players. They are reshaping the entrepreneurial space very well in the regions. It is learned that smaller cities are leading the charge and gradually becoming startup hubs. However, Bengaluru, Mumbai and Delhi NCR are undoubtedly the giants in the segment.
Hyderabad stands out with the highest number of deals secured. It has surpassed 384 transactions since 2014. However, Pune and Chennai have raised more funding equipped with more than $4.7 billion each while the figure of Hyderabad was $3 billion. Investors like Peak XV, 3one4 Capital and SoftBank have been instrumental in driving the growth.
Pune has carved a niche for itself in enterprise tech, SaaS and fintech. The city is transforming its identity from a back-office hub to a thriving innovation center. Chennai is equipped with its strong manufacturing roots and has embraced sectors like AI, logistics as well as fintech. Meanwhile, Hyderabad has continued to shine in areas such as biotechnology and logistics. The city has further established itself as a hub for diverse industries. Cities like Ahmedabad and Jaipur are also making their presence felt with growing activity in fintech, edtech and ecommerce. It is now evident that innovation can thrive anywhere if there is a right mix of talent, infrastructure and investment.
Challenges for the emerging hubs is to sustain the momentum and build ecosystems that can rival the established giants. Bengaluru, Mumbai and Delhi NCR are still dominating with billions of funding every year. They are helping to redefine the startup powerhouse in India.
