Mumbai: Delhi and its environs (popularly called NCR, for National Capital Region) have upstaged Bangalore as India’s biggest hub for technology start-ups, mainly because of superior capital support, says a survey.
At least 220 technology start-ups were launched in the NCR over the past three years, compared with 159 in Bangalore, according to the survey conducted by YourStory.in, which tracks start-ups in India.
Of these, 49 start-ups in NCR attracted investors, while only 18 did so in Bangalore.
The survey is based on data from 1,057 start-ups across 16 cities. Most of these ventures are less than three years old, and 15% of them are four-five years old.
Launching companies is easy in Bangalore because mentors and facilitators provide a mature entrepreneurial ecosystem, but sustaining these ventures is difficult in the absence of financial support, said Shradha Sharma, founder of YourStory.in, which claims to have the biggest database of fledgling firms in India.
“Start-ups come up crazily in Bangalore and die as fast,” Sharma said. “New Delhi and Mumbai companies have more access to capital than Bangalore. Seed- and angel-funding is minimal in Bangalore. Most companies still have to come to Mumbai for funding.”
Also, companies in New Delhi’s suburbs Noida and Gurgaon are started by professionals who have worked in multinational firms for three-five year.
“These ideas are more mature, therefore the quality is high,” she said.
Start-ups in Delhi stand out in terms of business focus, said Ashish Sinha, head, Pluggd.in, which also tracks start-ups.
“In New Delhi, it’s all about dhandha (business). Entrepreneurs are not doing long-term products. The focus is on making money,” he said. In contrast, entrepreneurs in Bangalore don’t stress on monetization.
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