SUMMARY
Surat made a surprising entry into the top 10 startup hubs, securing $6.9 Mn in 2023, the highest to date
Despite being listed among India's top 10 emerging startup hubs since 2014, Jaipur recorded only eight deals, registering a 56% decline from the 16 deals in 2022
Pune emerged as the fastest-growing startup hub in India, accumulating a total of $4.7 Bn in funding across 355 deals between 2014 and 2023
In 2023, there was a noticeable decline in venture capital concentration outside of the primary startup hubs — Bengaluru, Delhi NCR, and Mumbai.
According to Inc42’s Indian Startup Funding Report 2023, the emerging startup hubs collectively secured $1.4 Bn in funding, marking a 40% decline from the $4.7 Bn raised in 2022.
Among the top three emerging startup hubs in 2023 — Chennai, Pune, and Hyderabad — there was an average funding decline of 47.6% year-on-year YoY.
Chennai emerged as the leading startup hub, with startups raising $211 Mn in 32 deals in 2023. Notably, the city’s top three deals were secured by enterprise tech startups MadStreetDen (Vue.ai), Kaar Tech, and logistics startup Pando, each successfully raising a $30 Mn funding round.
Pune followed closely, raising $211 Mn in 30 deals, while Hyderabad startups secured $129 Mn in 27 deals.
Other emerging hubs like Ahmedabad, Kolkata, Jaipur, and Surat also made their mark, securing top 10 positions in 2023.
Interestingly, emerging startup hubs outperformed the top three in 2023. Bengaluru, Delhi NCR, and Mumbai collectively secured $8.1 Bn in funding, reflecting a 60% decline from the $20.3 Bn raised in 2022.
Download The ReportMeanwhile, let’s delve into key funding trends observed in 2023 across India’s emerging startup hubs.
Surat Made It To The Top 10 List
Surat made a surprising entrance into the top 10 startup hubs. Initially gaining attention in 2017 with ShilpMIS’s seed-stage funding, Surat witnessed significant growth in 2023.
Startups from the city secured funding in five deals, marking the highest to date. The total funding for Surat-based startups in 2023 reached $6.9 Mn, nearly a sixfold increase from the $997K raised in 2022.
According to industry experts, one of the key reasons for the growth of Surat as a startup hub is its proximity to major business hubs such as Ahmedabad and Mumbai, making it an apt centre for SaaS and IT companies. The availability of local talent, affordable lifestyles, and global connectivity are other factors fuelling Surat’s growth as a startup hub.
Jaipur The Worst Hit Among Emerging Startup Hubs
In contrast, Jaipur experienced a significant decline in funding activity in 2023. Despite being listed among India’s top 10 emerging startup hubs since 2014, the city recorded only eight deals, registering a 56% decline from the 16 deals in 2022.
Overall, Jaipur startups raised a total funding of $10 Mn, reflecting a 92% decline from the $135 Mn raised in 2022.
Jaipur, positioned as an alternative ecosystem for startup growth away from the crowded Gurugram and Delhi NCR region, faced challenges in boosting its startup ecosystem compared to top-tier hubs.
Some startups, like DealShare, started operations in Jaipur but later shifted (partly or fully) to Bengaluru for better quality talent and investor connections.
Download The ReportPune Emerged As The Fastest Growing Startup Hub In India
Pune emerged as the fastest-growing startup hub in India between 2014 and 2023, accumulating a total of $4.7 Bn in funding across 355 deals. The city surpassed others like Chennai, Hyderabad, and Ahmedabad.
While the funding scenario in 2023 was relatively subdued, with only ecommerce logistics solution provider XpressBees securing the largest funding round of $80 Mn, Pune has consistently attracted both domestic and international capital in recent years. Notable unicorns, including Icertis, Firstcry, Druva, XpressBees, Mindtickle, Chargebee, and OneCard, have contributed to Pune’s thriving startup ecosystem.
Apart from traditional sectors like enterprise tech, fintech, and ecommerce, Pune has witnessed growing investor interest in emerging sectors such as cleantech, deeptech, and logistics tech.
Despite the bearish funding trend in 2023, Pune’s proximity to Mumbai and its positioning as an IT hub are expected to attract more investments as the funding landscape evolves.
Moreover, Pune is set to witness its first startup IPO, with omnichannel marketplace FirstCry’s parent entity BrainBees Solutions Limited filing a draft red herring prospectus (DRHP) to raise INR 1,816 Cr through fresh share issues.
Download The Report[Edited by Shishir Parasher]
