2024 sees Pune and Hyderabad emerging as major startup destinations

The Indian startup landscape is witnessing a shift in terms of cities that are home to young entrepreneurs. Pune and Hyderabad are emerging as major investment hotspots. A recent survey shows that investors are bullish on these cities. The other cities that are worth mentioning are Chennai, Jaipur and Ahmedabad. These cities are emerging as the next big startup hubs. India currently has the third largest startup ecosystem in the world.

Chennai leads the way, raising $250 million in the first half of 2024. Pune follows closely behind with $241 million. Pune includes Fibe’s $90 million funding round and Rebel Foods’ $13 million debt round. Hyderabad raised $210 million across 26 deals. Startups from Ahmedabad and Jaipur raised $62 million and $47 million, respectively.

The increase in funding shows a significant improvement from the previous year. Chennai-based startups raised $211 million in 2023. Pune saw a similar figure, with Hyderabad raising $129 million across 27 deals. Ahmedabad and Jaipur raised $46 million and $8 million, respectively.

It is important to note here that the country’s average in startup funding has slowed. Indian startups raised $5.3 billion in the first half of 2024. The figure is down from $5.4 billion in the same period in 2023. However, investor confidence in these cities is still high.

Bengaluru is leading and dominant. The startup has raised $1.57 billion through 134 deals in the first half of 2024. Mumbai follows closely behind with $1.49 billion from 91 deals.

Bengaluru’s prominent position in the Indian startup ecosystem is historically entrenched. The city accounts for about 50% of the total startup funding in India. It has raised $70 billion in the past decade. Delhi NCR and Mumbai have raised $44 billion and $20 billion respectively in the same period.