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Jayant Mundhra
•
Dexter Capital Advisors • 2d
It's been days, and I wonder why no startup founder, VC or journalist has corrected Maharashtra's CM Devendra Fadvanis. At the recent Mumbai Tech Week summit, he claimed and rejoiced that Mumbai had trumped Bengaluru as the startup capital of India. You see, he claimed that Mumbai’s startups had achieved the highest number of deals and funding in 2024, leaving behind Bengaluru and Delhi/NCR. So, I checked out Inc42 Media’s Datalab report on the same. And what does the data say? 1> Bengaluru recorded the highest number of deals (285 vs NCR’s 252 and Mumbai’s 175) 2> Mumbai accounted for a third of the country’s startup funding, including Zepto, which, however, moved its headquarters to Bengaluru .. So, truth? Zepto raised three rounds of $650mn, $350mn and $340mn in 2024. That accounted for a third of total funding raised by Mumbai’s startups. And given Zepto had moved to Bengaluru mid-year, if we move all that money to Bengaluru’s account, Bengaluru’s share in India’s total startup funding nears 45%, while Mumbai’s falls to ~20%. .. And this is even though Zomato and Swiggy raised $1bn and $1.4bn. These numbers are no longer included in the startup funding numbers of NCR and Bengaluru, as these are now publicly listed companies. Had these been included (given that they fight one-on-one with Zepto), Bengaluru and NCR’s share of the pie would have been even higher. .. Mumbai’s startup saga has been fantastic and is absolutely celebration-worthy. But, the Govt of the state should spend more time figuring out why its hottest startup for a while (Zepto) had to move to Bengaluru for better prospects and growth. That will help Mumbai genuinely take over as the startup capital of India in the coming times. What do you think?
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