Until now, Delhi-NCR and Greater Mumbai were considered Indian hubs where all the global hi-tech activities took place. But the latest figures released by deal tracker Venture Intelligence shows that the erstwhile pensioner’s paradise has forged ahead in many ways leaving the bigger Indian megalopolises a lot behind. In the last five years, Bengaluru has evolved into a hub for future-ready, well-rounded enterprises.
Venture Capital Money Is Booming In Bengaluru
According to Venture Intelligence, in between January to July 2019, the companies based in Bengaluru have amassed $405 million in venture capital investment from around 100 deals. And during the same period of time, Delhi NCR gathered $239 million from 67 deals and Mumbai amassed $208 million from 48 deals. Importantly, this is not happening in the last couple of months.
The analysts have seen the same pattern repeating in the last five years with Bengaluru moving far ahead every year. In 2018, the firms in Bengaluru got $581 million from 176 deals whereas Delhi-NCR got $415 million from 110 days.
Mumbai was far behind with $373 million from 101 deals. According to the founder and managing director of Venture Capital, Arun Natarajan, “If you use VC as a filter, Bengaluru’s head-and-shoulders above any other city. Every quarter, almost boringly, it’s Bengaluru in front, NCR-Delhi, and Mumbai a far-behind number two and three.”
Bengaluru Evolved As Magnet For Startups
The longtime hi-tech hub of India has now grown beyond software services and today serves as a magnet for all kinds of startups. And this is because it is a place that has a wide talent pool. A study conducted by Nasscom revealed that out of the 7,700 startups across pan India, 30% are based in Bengaluru.
One such industry that is gaining roots in the garden city and is far from software services is electric vehicles. Many fleets of automakers like EV-motorbike manufacturer Emflux, scooter-maker Ather Energy, and Piaggio Ape and electric Tata Ace manufacturer Altigreen are venturing into this industry. Also, there is Micelio, a type of fund that has been floated by former CEO of Infosys, SD Shibulal’s family office that is investing exclusively in the electric vehicles.
Growth In EV Industry
As per reports around 100 firms are into making EVs or EV-components in and around the city. City-based firms like Ola also are gearing up for big e-mobility plans. Deepesh Rathore, an industry consultant who has relocated to Bengaluru because of his interest in EV cluster says, “Bengaluru’s now a start-up and tech-innovation hotbed especially for e-mobility which is the industry’s future.”
International firms like BMW, Bosch, Daimler-Benz, and Volvo that have increased the use of technology-driven parts in their automobiles have also been attracted towards Bengaluru. Retail chains like Target, Tesco, Sears also have centers here along with liquor firms like Diageo Business Services and InBev. The banking sector is also booming in Bengaluru with financial services giants like Morgan Stanley, Goldman Sachs and Axa making the city their important hub.
There are many traditional companies like Arvind Mills who have decided to launch their hi-tech businesses in Bengaluru.
