The Bengaluru startup ecosystem has slipped to the 21st rank in the Startup Genome’s Global Startup Ecosystem Report (GSER) 2024, a dip from its 20th position in 2023. This year, Bengaluru shares its rank with Sydney. Delhi and Mumbai are positioned at 24th and 37th, respectively, among the top 40 global startup ecosystems. Hyderabad is ranked between 41 and 50, under the emerging ecosystem category.
The rankings are based on a weighted average of factors including performance (30%), funding (25%), market reach (20%), talent and experience (20%), and knowledge (5%).
Bengaluru, known as the Silicon Valley of India, houses over 80% of India’s global IT offices, with software exports valued at Rs 6.3 lakh crore ($76 billion). The city has attracted venture capitalists and fostered a thriving startup environment, contributing 40% of India’s IT exports and producing 43 unicorns, such as Zerodha, Cred, PhonePe, Flipkart, and Big Basket.
The city also hosts more than 400 Global Capability Centers (GCCs) out of India’s total of 1,500, employs 1.3 million workers, and contributes $33.8 billion to the economy, approximately 1% of India’s GDP.
Notable recent funding rounds include unicorn Udaan raising $340 million in a Series E round in December 2023, and Zetwerk securing $20.4 million in Series F funding in March 2024.
The 2023 Bengaluru Tech Summit, Asia’s biggest integrated technology conclave, showcased over 600 exhibitors and launched 37 tech products. It introduced GameTech Accelerate, targeting an $8 billion investment into the AVGC sector growth in 2.5 years.
At London Tech Week, Karnataka’s IT/BT Minister Priyank Kharge announced the Hypergrowth Global Karnataka program, aiming to propel local tech companies into successful global commercialization. The initiative will provide access to global mentors, scaling advice, and connections to potential new customers and investors.
The top three global ecosystems remain unchanged, with Silicon Valley at the top, followed by New York City and London tied for second place. Tel Aviv has moved up to tie with Los Angeles at the fourth spot, and Tokyo has impressively entered the Top 10, moving from 15th to 10th position.
The GSER 2024 offers a comprehensive analysis of the current state of startup ecosystems worldwide, based on data from 4.5 million startups across 300 global ecosystems and a decade of research involving over 160 economic and innovation ministries and agencies in over 55 countries.