Bengaluru emerges as India’s top city for attracting funds for startups
Bengaluru has become the top city in the country for startups as far as getting funding is concerned. Delhi-NCR, Mumbai, Hyderabad, Pune follow closely for the first nine months of 2017 as per a report in the Financial Express.
Startups in Bengaluru got funding of $4.1 billion for the first three quarters of 2017 as per data provided by research firm Tracxn.
However, for the corresponding period in 2016, the Delhi-NCR region with companies like Paytm, Snapdeal, Ibibo, MakeMyTrip stood at the number one position, garnering $1.2 billion out of the total $3.3 billion of startup funding across India, the report says.
Bengaluru stood second behind Delhi-NCR in 2016.
A strong inflow of funds into companies such as Flipkart and Ola, has largely helped Bengaluru in attaining the premier position.
This period witnessed a series of billion-dollar investment rounds in the Indian start-up ecosystem, led by Flipkart, Ola and Paytm that raised huge amounts of capital this year.
Flipkart topped the charts by raising $2.5 billion from Japanese internet major, Softbank and another $1.4 billion from eBay Inc, Tencent and Microsoft.
Ola announced that it had raised $1.1 billion from Tencent and Softbank this month and it had earlier raised $250 million from the Japanese firm. Paytm had also raised $1.4 billion from SoftBank earlier this year.
Beside Flipkart and Ola raising money, raising of funds by Bengaluru based Swiggy, BigBasket and Byju’s also helped the city to outstrip the Delhi-NCR region.
As per the Tracxn data, the other emerging start-up cities are Mumbai, Hyderabad, Pune, and Chennai.