Pune and Hyderabad Lead as India’s Emerging Startup Hubs

Summary
An Inc42 survey indicates that investors see Pune, Hyderabad, Chennai, Jaipur, and Ahmedabad as the next major startup hotspots in India.

In H1 2024, Chennai-based startups secured the highest funding among these cities, raising $250 million. Pune followed closely with $241 million across 18 deals. Each of these emerging startup hubs raised more funds in the first half of 2024 than they did in all of 2023.

Despite the ongoing funding winter affecting the Indian startup ecosystem, investors remain optimistic about its expansion. According to the Inc42 survey, which gathered responses from over 50 active venture capitalist firms and angel investors, Pune, Hyderabad, and Chennai are expected to become the next major startup hubs in India.

Survey Insights
Investors ranked Pune, Hyderabad, Chennai, Jaipur, and Ahmedabad as the top cities likely to emerge as startup hotspots. Chennai-based startups raised the most funds in the first half of 2024, securing $250 million. Pune-based startups followed with $241 million across 18 deals, including Fibe’s $90 million funding round and Rebel Foods’ $13 million debt round.

Hyderabad startups raised over $210 million through 26 deals in the first half of 2024. Ahmedabad and Jaipur startups secured over $62 million and $47 million, respectively.

For context, Chennai startups raised $211 million in 2023, while Pune startups also secured $211 million. However, Chennai led in the number of deals. Hyderabad startups raised $129 million through 27 deals last year. Ahmedabad startups received $46 million in 2023, while Jaipur’s ecosystem saw an $8 million capital infusion.

Funding Landscape
Startup funding in India remained subdued in H1 2024, with a total of $5.3 billion raised, down 1.8% from $5.4 billion in H1 2023.

Bengaluru retained its title as India’s premier startup hub, with startups raising $1.57 billion through 134 deals in H1 2024. Mumbai followed with $1.49 billion from 91 deals.

Historically, Bengaluru has dominated the Indian startup ecosystem, accounting for about 50% of total startup funding since 2014, raising $70 billion over the past decade. Delhi NCR and Mumbai-based startups secured $44 billion and $20 billion, respectively, in the same period.

Emerging hubs like Pune, Chennai, and Hyderabad raised $5 billion, $4 billion, and $3 billion, respectively, over the last decade.

This strong performance highlights the growing prominence of these cities in the Indian startup ecosystem.