From Hyderabad To Jaipur: Here Are The Top Emerging Indian Startup Hubs

Over the years, the Indian startup ecosystem has outgrown the grips of the traditional business epicentres like Bengaluru, Delhi NCR and Mumbai, with tier II and III cities becoming the new breeding grounds for entrepreneurship and innovation.

According to Inc42’s Annual Funding Report 2024, Hyderabad, Pune and Chennai are the frontrunners of the emerging startup hub race. While Hyderabad claimed the top spot on the back of the total number of deals secured since 2014 (at 384+), Pune and Chennai secured second and third places, with 382+ and 379+ deals, respectively. Interestingly, with $4.7 Bn+ each, Pune and Chennai outranked Hyderabad in terms of total funding, which has been able to net $3 Bn+ since 2014.

Moving on, some of the other top emerging startup hubs identified in the Inc42’s latest report are Ahmedabad, Jaipur, Kolkata, Indore, Kochi, Chandigarh and Vadodara. Overall, the top 10 emerging startup hubs have secured a total funding north of $15.5 Bn in more than 1,570 deals since 2014.

Notably, investors like 3one4 Capital Peak XV, Accel, Chiratae and SoftBank, among others have been the main driving force helping Hyderabad, Pune and Chennai bag the coveted tag of emerging startup hubs in India. 

It is also worth mentioning that while Hyderabad has cemented its position in sectors like logistics, pharmaceuticals and biotechnology, Pune has built a strong base in enterprise tech, SaaS, and fintech, changing its perception of the back office to make itself appealing to investors as an emerging startup powerhouse. Meanwhile, cities like Ahmedabad and Jaipur have largely seen entrepreneurs focussed on fintech and edtech sectors.

However, much has yet to be done and miles to be walked before toppling Bengaluru, Mumbai and Delhi NCR, the crown jewels of the Indian startup ecosystem, from their respective positions. 

This year, Mumbai became the most-funded startup hub with $3.67 Bn raised across 175 deals. The country’s financial capital was followed closely by Bengaluru, which raked in $3.4 Bn in total startup funding this year alone across 249 deals. Meanwhile, startups based in Delhi NCR raised $2.3 Bn across 252 deals in the year.

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While Rome was not built in a day, the rise of the tier II and III cities on India’s startup map is only emblematic of the fact that investors have started to take cognisance of entrepreneurs that exist sans the gleam of flashy metropolises.

With that said, let’s steal a glance at the top five emerging startup hubs that have played a crucial role in making India the startup powerhouse that it is today.

Note: Cities are ranked by the number of deals closed between 2014 and 2024. Other than the top five emerging startup hubs, Hyderabad, Pune, Chennai, Ahmedabad and Jaipur, startups in the remaining cities have secured fewer than 100 deals since 2014.    

Hyderabad

At the top of emerging startup hubs, Hyderabad has seen the highest number of startups that gained investor interest in the past decade. This year, startups based in Hyderabad raised $296 Mn via 46 deals.

Between 2014 and the end of 2024, it has already raised startup funding in excess of $3 Bn in more than 384 deals. Notable investors partaking in the blossoming startup ecosystem of the city include the likes of Peak XV, 3one4 Capital, Hyderabad Angels and T-Hub. 

Hyderabad’s startup ecosystem flourished on the back of key sectors like enterprise tech and fintech. Not just this, the city has also recorded 32 ecommerce deals and 35 edtech deals since 2014. It has raised more than $7 Mn in the ecommerce space. 

The city is also home to listed new-age tech company Zaggle, HRtech major Darwinbox and a plethora of spacetech startups, including XDLinx, and Skyroot, among others.

With a robust entrepreneurial culture and increasing investor interest, Hyderabad is emerging as one of the top destinations for startups looking to scale. Hyderabad startups secured $129 Mn in 27 deals last year.

The city’s ecosystem continues to evolve, making it an exciting region for innovation and business development, solidifying its place among India’s most vibrant startup hubs.

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Pune 

Pune has rapidly emerged as a prominent startup hub in India, with a growing reputation for innovation across various sectors. Closing 2024, the city has seen startups bag over $4.7 Bn across 380 deals since 2014. This year, startups based in Pune raised $439 Mn via 33 deals.

Pune emerged as a significant startup destination, recording 52 deals in the ecommerce sector and 23 deals in edtech between 2014 and 2024. The city secured $104 Mn in ecommerce funding during this period.

Among the standout deals of 2024, foodtech startup Rebel $210 Mn in December. Besides, lending tech startup Fibe raised $90 Mn in fresh capital in 2024.

The city, which is also popularly known as the “Queen of the Deccan”, is also home to multiple prominent startups like listed babycare brand FirstCry, DroneAcharya, fintech unicorn OneCard, and XpressBees, among others. 

Chennai 

Chennai has firmly positioned itself as one of India’s leading startup hubs, attracting significant attention and investments in 2024. 

Chennai-based startups net more than $4.7 Bn across 379 deals between 2014 and 2024. This year, startups based in Chennai raised $472 Mn via 27 deals.

Known for its roots in manufacturing, automotive, and IT industries, the city has evolved into a dynamic and diverse ecosystem, fostering innovation across enterprise tech, AI, logistics, and fintech sectors. Chennai maintained steady growth with 37 ecommerce deals and 21 edtech deals. The city’s startups raised $13 Mn in edtech funding between 2014 and 2024.

In the first half of 2024 alone, Chennai-based startups raised $250 Mn, underscoring the city’s growing prominence in the national startup landscape.

The support of prominent investors like Peak XV, Accel and Chiratae Ventures has played a crucial role in enabling these startups to scale and compete on a global level.

Chennai’s investment success highlights its unique advantages, including a robust talent pool, a strong focus on innovation, and increasing diversification across industries.

As investors increasingly turn to cities beyond the traditional startup hubs of Bengaluru, Delhi NCR, and Mumbai, Chennai has emerged as a key destination for future growth and entrepreneurial activity. 

Ahmedabad

Ahmedabad has quickly emerged as a prominent force in India’s expanding startup ecosystem, reflecting the entrepreneurial spirit of Gujarat, which has been recognised as a ‘Best Performer’ in the Department for Promotion of Industry and Internal Trade’s (DPIIT) state-wise ranking for the startup ecosystem four times in a row since 2018. 

The city’s transformation from a hub for manufacturing and textiles to a thriving centre for fintech, SaaS, healthtech, and edtech showcases its growing diversity and innovation across multiple sectors.

Between 2014 and 2024, Ahmedabad-based startups raised $930 Mn in around 160 deals. This year, startups based in Hyderabad raised $92 Mn via 19 deals.

This rise is largely attributed to the city’s expanding ecosystem, supported by a strong talent pool and an entrepreneurial culture that encourages new ventures. 

Ahmedabad’s startups are attracting attention from both local and international investors, with key players such as Alteria Capital, Lightspeed Venture Partners, Alkeon Capital, and Ah Ventures fueling the growth of emerging startups.

Jaipur

Jaipur has quickly become a rising star in India’s startup ecosystem, attracting increasing attention from investors and entrepreneurs alike. Known for its rich cultural heritage, the city is now transforming into a vibrant hub for ecommerce, fintech, healthtech, and edtech startups.

With a growing network of incubators, accelerators, and venture capital firms, Jaipur is fostering an environment ripe for innovation and growth.

Between 2014 and 2024, Jaipur-based startups raised $1.4 Bn in 108 deals, marking a significant milestone in the city’s entrepreneurial journey. This year, startups based in Jaipur raised $289 Mn via 14 deals.

The influx of investment highlights investors’ confidence in Jaipur’s rapidly evolving ecosystem. Key investors like iStart, Indian Angel Network, and Peak XV are fuelling the city’s growth, providing the necessary capital and expertise to scale emerging ventures.

Jaipur’s growing prominence as a startup hub can be attributed to its supportive infrastructure, a skilled talent pool, and a thriving community of entrepreneurs. 

As more investors turn their attention to emerging cities, Jaipur is becoming a key destination for those looking to tap into India’s next wave of innovation. With its unique blend of traditional business practices and forward-thinking tech ventures, Jaipur is well-positioned to continue its ascent as one of India’s most exciting startup hubs.

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