Best City for Flourishment of Startups in India

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Posted On : 12th, October 2017

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Best City for Flourishment of Startups in India

12th, October 2017    -    Startup community

Since past few decades startup culture is gaining popularity in the world. India is also claiming to rank in startup’s world. After 2000s decade there is a sudden surge in tech and non-tech startups founded in India.

Not every city is good for startup culture. For becoming a startup hub a city has to hold on various factors. Likewise-

1.     Startup Goal

2.     Startup’s Target Audience

3.     Financial Resources

4.     Infrastructure

5.     Flourishing Domestic Market

6.     Intellectual talent

7.     Connectivity

8.     Internet users etc.

Although there are many cities in India claiming best environment for startups, unfortunately, many of them are not capable to support the startup culture. Only a few of them can bear the tag of startup hub. Many Indian cities are in process to build an infrastructure supporting these ventures.

Some cities had established them as a startup hub. 


Often crowned as Silicon Valley of South-East Asia Bengaluru is the first choice for entrepreneurs to start a venture. Tech biggies like Wipro and Infosys have headquartered in the city. The city has a great potential to become a global hub for startups as according to 2015-1016 data the city has attracted 13 percent more talent than Silicon Valley. The city has an ecosystem that helps in sustaining the startup venture. Flipkart and Ola started in Mumbai but after that moved to Bengaluru. This shows greater opportunities available in the city.

There are many factors which favoring the startups. Like-

*Large young population of tech talent.

*Tempting startup ecosystem


*Rich social life

*Amicable weather

Despite these factors, the city is lagging in the field of public transport. This only factor affects much but other positives are there to compensate it.


Delhi (NCR):

The National Capital Region is home to many startup ventures like Paytm, Snapdeal, and Shopclues etc. The city holds upon 23 percent of total startup venture in India and continues spreading its span. According to Traxcn in the year 2016 Delhi received 1.12 billion USD fund from gross India total fund of 3.15 billion USD. 

Various favorable factors are-

*Delhi has a stronghold of telecommunications.

*Delhi is home to large media houses like TOI and HT. These media houses support the startup ventures a lot.

*Delhi is also the heart of startup conferences and meets.

*Delhi ecosystem supports the E-commerce activities.

*Strong founder-investor relationship

*Delhi holds a great part of total tourism volume of India.

*Delhi has the best infrastructure in India.

*Easy Transport facility due to metro rail.

*Greater per capita spending also helps the ecosystem

*Delhi has easy availabilities of both skilled and unskilled labor.

*Developed satellite cities like Gurugram and NOIDA also helps in sustainable Startup culture.

Despite all these favors, Delhi has a drawdown factor that is increasing crime rate in the capital. Women safety is also a governing factor in this.


Crowned as Financial and Commercial Capital of India, Mumbai is a gem in the list of startup favoring cities not only in India but in South Asia also.

Powai valley is growing part of the city as a startup palace in the city. and are two of many startups started here.

Favorable factors are-

*Large size of angel investors in city

*Easy fundraising is also a favorable factor.

*City has a large internet connected population that will help in increasing tech-based ventures to grow.

*City has excellent connectivity with other cities of India via rail or road transport. As well flight service also available here.

*City has headquartered of big financial organizations like RBI and SBI.

As like other cities, Mumbai also lags in the field of effective public transport which is a governing factor for any city to grow.


 The city holds the tag of developing IT hub within Maharashtra state. With an atmosphere similar to Bengaluru Pune holds a reputed rank in startup favorable cities in India. Many factors like-

*Tech Parks

*Large size of young enthusiastic workforce

*Good educational institutes

*Reasonable price for real estates in city

*City has an enormous potential to grow in every field

*Close proximity to Mumbai also a favorable factor

Above discussed factors citing that Pune will be the largest startup hub in the country in following years.


The city is shedding its image as the auto parts manufacturing hub of India and creating its image as a software-based service hub. Companies including Zoho, Unmetric becoming a key player in Chennai to gain global clientele.

According to 2014 report of the LinkedIn, the city attracted 38 percent new tech talent which is third large after Bengaluru, Pune which attracted 44 percent and 43 percent respectively.

There are many things that can favor startup culture but city lags only in the field of investor connectivity. According to a report when Bengaluru has 220 angel investors Chennai holds upon only 50 angel investors. This difference is really very big.


The city is home to 679 startups as the report of June 2016. The Incubator Model and Startup Village marked success. This model has been replicating in various cities also. The city has a vast market of opportunities for a software product.

The city has MoU signed with California based Menalo Park City for sharing ideas and technology.

Although above-mentioned cities had reached a certain mark to hold the tag of startup home, some other cities are there which can be a reputed part of the list in future.

Kolkata is a startup warehouse and has great potential to hold the tag. But city lags in investor base and Public transport.

For past few decades Hyderabad holds a rank in the list but due to lacking in capitalization the rank was withdrawn by the city. An educated workforce and low cost of living are factors which favor the startup culture.

Ahmedabad and Jaipur are also a competitor for the tag.

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Prakhar Gupta

My name is Prakhar Gupta, pursuing Masters Degree in Geotechnical Engineering.I came into this field so that I can satisfy my thirst for knowledge about the world and learn about new things every moment.

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