Bengaluru, Delhi, Mumbai start-ups received nearly 80% of funding deals in last 5 years
Bengaluru and Delhi start-ups received most of the funding during the last 5 years, with a majority of the start-up unicorns in these cities.
Key highlights:
- Over the last five years, 79% of the funding deals went to start-ups based in these three cities
- Bengaluru and Delhi claiming the majority of the country's 10 unicorns
- Bengaluru had the greatest number of deals over the past five years in India at 30%
Start-ups in Bengaluru, Delhi and Mumbai together claim three-fourths of India's start-up deals. Over the last five years, 79% of the funding deals went to start-ups based in these three cities, with Bengaluru and Delhi claiming the majority of the country's 10 unicorns, according to a CB Insights report.
Bengaluru had the greatest number of deals over the past five years in India at 30%.
Source: CB Insights
Bengaluru is also home to India’s most well-funded startup, e-commerce site Flipkart, which has raised $7.2 billion in funding since 2011. The unicorn’s most recent round was a second tranche of Series J funding in August, when it raised $2.5 billion from SoftBank Group, which has earmarked its $93 billion Vision Fund for global startup investing.
Taxi-hailing company Ola cabs has been funded to the tune of $2.54 billion and shares a few investors with Flipkart, including SoftBank Group and Tiger Global Management. Third is classifieds site Quikr, which has raised $370 million in total, said the report.
The Delhi-NCR area came in a close second at 29% of the start-up funding deals.
Delhi-NCR is home to six unicorns, which is the most of any other region. Its most well-funded start-up is One97 Communications, the parent company of e-wallet and e-commerce site Paytm, which has raised $2.77 billion in funding. Its most recent round was in May — a $1.4 billion corporate minority round from Softbank.
Source: CB Insights
In second place is e-commerce site Snapdeal, which has raised $1.78 billion in total funding. Hotel room aggregator OYO Rooms comes in third, having raised $543 million in total funding. Other heavily funded startups include unicorn and messaging app Hike, which has raised a total of $261 million.
In third place was the coastal city of Mumbai, historically known as the country’s financial capital, with 20% of deals. However, it is home to non of the unicorns in India.
Its most well-funded startup is B2B used car marketplace CarTrade, which has raised $230 million in total, with its latest infusion of $55 million coming in 2017 from Singapore’s Temasek Holdings. In second is furniture e-commerce site Pepperfry, which has raised $160 million.
The remaining top two cities, Chennai and Pune, were much less active, each taking less than 5% of deal share.
Pune, which is close to Mumbai, took up 4% of all start-up deals, while Chennai closed 3% of all deals. Hyderabad has closed slightly fewer deals than Chennai and Pune.
ALSO READ:
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
07:29 PM IST