Highlights:
• Bengaluru-based startups received $7.5 Bn in funding between January and May 2022
• Bengaluru’s startup ecosystem was valued at $105 Bn, higher than Singapore and Tokyo
• The capital of Karnataka was just behind Silicon Valley, London, Greater Boston and New York
India’s startup capital and domestic Silicon Valley, Bengaluru, has been ranked fifth in the world for tech venture capital investments in 2022.
According to a report released at London Tech Week 2022 by policy advisory and research organisation Startup Genome, Bengaluru-based startups received $7.5 billion in funding between January and May 2022.
Top Asian city in terms of investments in 2021
Bengaluru was the top Asian city in terms of investments received during the period, breaking its own record of raising $5.2 Mn in the first half of 2021. In 2022, the city is just behind Silicon Valley, London, Greater Boston and New York.
Raised $5.7 billion in 167 transactions alone
According to Inc42, Bengaluru-based startups raised $5.7 billion in 167 transactions during the March quarter of 2022 alone.
Mumbai, Hyderabad and Delhi were the other cities from India to make it to Startup Genome’s list. “The ecosystem was once dominated by Beijing, Singapore, Hong Kong and Korea and is now being considerably disrupted by Indian cities like Bengaluru, Mumbai, Telangana and Delhi,” the report said.
It also said that Bengaluru’s startup ecosystem was valued at $105 Bn, significantly higher than Singapore (at $89 Bn) and Tokyo (at $62 Bn).
Bengaluru – Number 1 Destination for Venture Capital Funds in India
There’s little doubt that Bengaluru is India’s top startup hub in terms of funding, deal counts, unicorns produced, average ticket size of funding, and even startup count. Between 2014 and 2020, the Indian
Silicon Valley accounted for approximately 40% of total startup funding in India.
According to India’s Economic Survey 2021-2022, the city added over 4.5K new startups between April 2019 and December 2021. The city has led the country in startup funding for the last five quarters,
followed by Delhi-NCR (which includes New Delhi, Noida, Gurugram, Ghaziabad, and Faridabad), Mumbai, Hyderabad, Chennai, and Pune.
Bengaluru, Delhi-NCR, and Mumbai received 78 percent of total funding (approximately $9.1 billion) in Q1 CY22.
Bengaluru is understandably the de facto capital of India’s startup ecosystem because late stage funding is where the most money is. Bengaluru-based startups raised a total of $22 billion in late-stage funding between Q1 2021 and Q1 2022, spawning unicorns such as Amagi, LivSpace, Dealshare, Blackbuck, CRED, and Zeta, among others. To date, the city has been home to 39 unicorns.
