The startup revolution is here and it’s here to stay. For years, if one had to consider a place as the startup hub, more precisely a technological startup hub, they would think of Silicon Valley. It still continues to be the go-to place for tech entrepreneurs and startup visionaries everywhere.
But with more cities from all over the world being dubbed as the ‘Next Silicon Valley’, how long will Silicon Valley hold its place as #1? Probably for long enough. But which city is going to be the next Silicon Valley?
In terms of India, from being an outsourcing hub to actually being home to thousands of startups (Flipkart, Ola, Zomato, etc.) and many international offices (Facebook, Amazon, Uber, Google, etc.), the country is slowly getting into the big picture. It has strong contenders to all the hubs on the list to be the next Silicon Valley.
So, India being the third largest base for startups globally, which cities can make the cut?
According to a NASSCOM report, the Indian startup ecosystem witnessed a growth of 167% to score over $6.4 Bn in H1-2017. Out of these, the average funding for B2B tech startups in 2017 witnessed an increase of 5% while B2C tech startups’ average funding saw a decline of 10%.
Will Bengaluru Continue To Be The Silicon Valley Of India?
For years, Bengaluru has been India’s Silicon Valley and has always been an area of interest for all the tech enthusiasts, as it has the highest number of startups with regards to the Internet, apps, services, software products, etc. It is also growing in terms of investments, which are happening almost every day.
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International retail giant, Amazon has ruled over the online shopping sector for years, from the time Jeff Bezos came up with the idea and it started of as an online bookstore to what we know it to be today. After which Bengaluru-based Sachin Bansal and Binny Bansal founded Flipkart to be an Indian equivalent to Amazon.
The above-mentioned snippet from a real-time study conducted by coupons marketplace, GrabOn shows that on an average, 15 Mn Flipkart orders are placed over 14 Mn Amazon orders.
The same is the case with Ola and Uber too. According to recent rumors circulating in the startup business scene, Ola is likely to take over Uber India. This Bengaluru-based startup has also risen against all odds to be one of the top startups in India.
FreeCharge, Quikr and InMobi had shifted their base to Bengaluru in search of good talent and low real estate cost. Further, 26% of the startups are concentrated in Bengaluru.
Cities Like Chennai, Hyderabad, Mumbai And Pune Are All Catching Up
Chennai has evolved as the SaaS hub of the country with companies like Zoho and Freshdesk, backed by investors who are here to spend. It is already known as the Detroit of India. According to a LinkedIn research, the city attracted 38% of new tech talent and is slowly moving towards being the tech giant.
Even if you see education wise, Chennai has a larger IT student base and community. There’s a lot less hustle in this city. With the success stories of the other startups from there, surely makes it a convenient option to start out. Just beware of the weather. That’s when it gets tricky.
Also, according to a BBC report, Hyderabad is likely to emerge as the next Silicon Valley. Hyderabad has topped the list of Quality of Life Index, three years in a row making it a more apt place for startups. Hyderabad is being increasingly named as the new city of choice.
Antoine Poirson, co-founder of StanPlus states Hyderabad’s ecosystem to be very vibrant and dynamic. There’s a lot of support from the government which totally lessens the hassle of starting a business. The city is still home to major global companies like Facebook and Microsoft. This city also has educated and well versed young professionals. That along with good physical infrastructure and a cheaper cost of living when compared to other cities makes it an apt Startup Hub.
Mumbai is already known as the financial headquarters of India. With 17% of the startups concentrated in this city alone, it aims at being the next startup hub in India. Mumbai has a strong base for SaaS-based startups. It is known for startups like ClearTrip, TinyOwl, LightBox, etc. And thanks to IIT-B, a lot of enthusiastic students set up shop in Mumbai for their startups, increasing its chances of being the next Silicon Valley.
The last contender on the list for the next Silicon Valley is Pune. Global companies are opting more and more for Pune. It has become a growing community for entrepreneurs and IT enthusiasts. With its proximity to Mumbai, the financial headquarters of India, more startup founders opt for this location to start off from there.
India is slowly and steadily going up the ladder to become the leading startup hub. It’s already ranked third globally and there’s only a tiny leap from there. With more and more startups coming from all the startup hubs collectively, it can definitely be the next Silicon Valley!