Move over, Bengaluru and Mumbai, India has the newest hotspot for startups and unicorns in India.
Amitabh Kant, chief executive officer of government think tank NITI Aayog, released a report issued by TiE Delhi-NCR and consulting firm Zinnov titled- “Turbocharging Delhi-NCR Startup Ecosystem”. Amitabh Kant assured the government’s continued support to the startup community in setting up incubation centers in the region. He pointed out that six Indian cities—Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Pune—are among the top 100 startup hubs globally and except the US, no other country has more than five cities on the list, making India a broad-based startup ecosystem. The region that comprises the national capital and adjoining cities of Gurugram and Noida now count more startups and unicorns than Bengaluru and Mumbai.
Delhi-NCR is home to 10 unicorns, or those with a valuation of at least $1 billion, with at least one added each year since 2013, compared with the nine and two unicorns that Bengaluru and Mumbai had added, respectively, in the first half of 2019, according to the report. A total of 7,000 startups were founded in Delhi-NCR since 2009, according to the TiE-Zinnov report.
Bengaluru—considered India’s “Silicon Valley”—had 5,234 startups in the same period, followed by Mumbai with 3,829 and Hyderabad with 1,940 startups.
Rajan Anandan, president of TiE Delhi-NCR, said accelerating growth of the ecosystem will require “a lot more seed and early-stage funding, creating more affordable co-working spaces, increasing the number and quality of accelerators and incubators, developing deeper pools of technical talent and developing sector-specific policies”. Lack of affordable co-working spaces, less number, and quality of accelerators and incubators, shortage of technical talent, lack of seed and early-stage funding and low corporate participation are the issues to be dealt with.
Nevertheless, with 10 unicorns, the cumulative private market valuation of startups in the Delhi-NCR region is currently $46-56 billion, followed by Bengaluru at $32-37 billion followed by Mumbai at $10-12 billion. Some of the unicorns in the Delhi-NCR region are MakeMyTrip, Info Edge, and Indiamart.