Bengaluru can be regarded as the technical hub of India but right now Delhi NCR (National Capital Region) has the highest number of start ups at 8772. This has been revealed in data brought out by Tracxn Technologies. Bengaluru is right next on the list with 6818 start ups. Mumbai comes next with 4825 such enterprises. There are 2913 start ups in Hyderabad followed by 1843 start ups that operate in Pune. There are 449 start ups in Delhi NCR that can be classified in the fintech (finance and technology) category. Mumbai, however, has more fintech start ups at 467. Bengaluru is third in this regard with 405 followed by Hyderabad at 128 and Pune at 103.
The situation with online retail start ups
Delhi NCR has the most number of online retail start ups – 1288. The biggest companies based in this sector in this region are Snapdeal, Paytm Mall, Limeroad, and Shopclues. Mumbai has 645 start ups running in the online retail sector. Next in line is Bengaluru with 541. There are 127 online retail start ups in Hyderabad. As far as analysts are concerned, an increasing number of young entrepreneurs are breaking away from the traditional fold and starting their own businesses. This trend is especially evident in Delhi-NCR region.
Start ups in Bengaluru
Majority of the start ups in the capital city of Karnataka are working in the domain of technology since most of the owners used to be technology professionals themselves. As far as Delhi NCR is concerned, most of the entrepreneurs belong to business families themselves. Apart from that information technology (IT) professionals are setting up companies over here as well. As per Sreedhar Prasad, Lead, E-commerce and Start-Ups, KPMG, this development shows that technology is not the only domain where entrepreneurship is happening.
Where else is it spreading?
According to Prasad, these days, entrepreneurs are looking at other areas such as financial services, consumer services, and ecosystem related services. The fact that so many start ups are operating in the region also means that Delhi NCR is receiving a lion’s share of the investment being provided by venture capital funds. Jefferies, an equity firm, has recently brought out a report, which states that in the six months heading up to June an aggregate amount of $4 billion has been invested in Delhi NCR. At the same time in 2016 this amount was calculated at $1.6 billion.
The spread of investment
In 2016 there were several firms that received varying shares of the investment thus ensuring that it was properly spread out. This time however Oyo and Paytm have accounted for 70% of the entire investment made in the three months of April, May, and June in 2017. Fintech seems to be one major area that has received plenty of support from the investors. In fact, this is the sector that has gobbled up most of the investment coming the way of Delhi NCR. This amount can be calculated as being around 33.33% of the entire amount. E-tailing is another sector with a similar share of the investment.