The 2021 and 2022 witnessed a tough funding winter for the Indian startup ecosystem. Signs of recovery was seen in 2023 and the funding jumped 20% year-on-year (YoY) to $12 billion in 2024. Mumbai overtook Bengaluru in 2024 as the most funded startup hub in the country.
Mumbai witnessed a growth of 154% in funding raising $3.7 billion. The figure was $1.5 billion in 2023. Quick-commerce giant Zepto alone brought in 37% of the total funding. It raised $665 million in June, $340 million in August and thereafter $350 million in November. However, It later moved its base to Bengaluru, but the funding was still attributed to Mumbai for data attribution.
The growth is exciting amid challenges for the city as it lags behind Bengaluru in deal volumes. Mumbai had 175 funding deals in 2024 while Bengaluru witnessed 285.
Experts believe that talent availability is a key factor and Bengaluru has a richer talent pool. Major companies like Ola and Zepto have relocated to Bengaluru and it signals other entrepreneurs to follow the same. Mumbai risks losing its momentum without enough local talent and new startups.
Projects like Ather Energy’s e-scooter plant and Adani’s $10 billion semiconductor facility could bring more innovation to the region. Efforts like IIT Bombay’s new VC fund to support tech startups also signal a brighter future.
Mumbai has shown that it can compete with Bengaluru, but retaining the position requires more than just big funding rounds. Mumbai could cement itself as a long-term leader in India’s startup ecosystem with the right focus.
