Touted as the Silicon Valley of India, Bengaluru has led the way in the Indian sub-continent as a startup hub. India’s tryst with startups began with this dynamic city and moving to Bengaluru has proved to be a game-changer for entrepreneurs and startup job seekers. The entrepreneurial energy of the city is driven by the strength and talent of the multitude of people moving to Bengaluru to make the best of its business climate.
Bengaluru is a thriving city with a population of 8.7 million and a GDP of $45 billion. The city has grown to become a favourite destination for starting a business not just for Indian entrepreneurs but also for startups all over the world who are moving to Bengaluru. This has helped attract monetary capital to the city as well. According to the National Association of Software and Services Companies (NASSCOM), the trade association for the IT-BPM industry in India, the country saw an increase in funds by 108% in 2017.
Characterised with more than 8,500 startups and a proclivity for tech activities, Bengaluru has managed to stay the startup capital in South India. Home to one of India’s largest e-commerce website and other global names that have been acquired by the likes of Facebook and Google, Bengaluru can be safely called as the cradle of the startup revolution in India. Apart from the obviously prominent tech sector, the city also has a booming hospitality and manufacturing industry.
Why is Bengaluru the Hotspot for Startups?
Bangalore’s success as a startup hub lies in a solid economic and business foundation. This foundation has been laid down by the various companies who have set up their headquarters here and are giants in their respective industries. The city’s tryst with technology began way back in the 1970s, thanks to the pioneer R.K Baliga who played a pivotal role in transforming the city’s IT landscape. Moving to Bengaluru, the information capital of India, comes with an array of business advantages.
Startups in Bengaluru can Rely on an Innovation Supporting Government
The growth of Bengaluru as a startup hub has contributed significantly to the city’s and the state’s economy. This contribution has not gone unnoticed by the state government of Karnataka that has rolled out several policies and initiatives to help entrepreneurs and startups moving to Bengaluru. These government measures are intended to help the different ecosystem players find fertile ground for growth.
The government of Karnataka has a set a vision of helping over 20,000 tech startups boom by 2020 as a part of a five-year policy for improving the startup scene. Entrepreneurs moving to Bengaluru with revolutionary business ideas but are bootstrapped can rely on the government plan to help with the funding.
Move to Bengaluru to Discover a Wellspring of Talent
A strong talent pool is an essential asset for any city, and the one in Bengaluru has grown as more and more startups started shifting bases here. The high concentration of startups and offices of large public companies has brought the crème de la crème of all fields to the startups in Bengaluru. The premium educational institutions in the area like the Indian Institute of Management and the International Institute of Information Technology also play a huge role in strengthening the local talent pool. Tech companies moving to Bengaluru hit the jackpot as the tech labor here is one of the cheapest in the world.
Move to the Indian IT Capital for Wealthy Sources of Funding
The city’s success as a startup hub has created a secure network of investors that comprise of both local and international players. Entrepreneurs often move to Bengaluru in the hope to get noticed by the 6000+ angel investors in the city. The IT capital had secured over 250 deals in 2017 and raised more than $7 billion in funding in the same year. The venture capital scene in Bengaluru has helped put India in the spotlight globally several times.
Startups in Bengaluru can Count on the Entrepreneurial Community for Support
The entrepreneurial spirit in the city is contagious and is embodied in its startup community. The community includes all kinds of startup players and partners. Moving to Bengaluru gives startups and startup job seekers numerous opportunities to network and create the right connections. 10,000 Startups, an initiative by NASSCOM, is aimed at helping 10,000 startups grow by 2023 and conducts more than 3,000 startup events every year in the city. The city’s array of incubators and accelerators have also helped hundreds of entrepreneurs materialize their startup dreams.
Find the Best Offices With Co-Working Offices in Bangalore
Apart from a robust digital infrastructure that is creating a favourable climate for startups in Bengaluru, players like co-working office space brands are also making a difference. These well-designed offices are a boon for those looking at affordable commercial real estate options. Brands like SNEED, 91springboard, BHIVE, and Bangalore Alpha Lab are some of the key players in Bengaluru. 91springboard and BHIVE offer shared workspaces in more than two locations in the city offering more options for entrepreneurs and startups in Bengaluru.
The Rich Tech Sector in India’s Bustling IT Capital
Bengaluru surely opened up new avenues for technology-based companies in the region. The city’s tech labor may be cheaper than most other global startup ecosystems but the engineering knowledge is also at par with them. Close to 95% of the workforce in Bengaluru have a technical academic background which is higher than even the most significant tech ecosystems around the world. The sector has its fair share of unicorns and is known for its growing fintech,edtech, and advanced manufacturing(IoT) sub-sectors.
Edtech Sector for Startups & Entrepreneurs in Bengaluru
The growth of the edtech sector in Bengaluru is a result of the increased need for transforming the Indian education system. India has more than 1.5 million schools that are responsible for educating a body of 260 million students. One of the most excellent examples of an edtech startup would be of BYJU’s, an edtech firm that is revolutionizing the way children study in India. The company offers easy learning solutions and programs through its learning app which is targeted at students in classes 6 through 12. The potential of the company has been recognized by the Chan Zuckerberg Initiative, Sequoia Capital, and Tencent holdings who have made a combined investment of $244 million in the company. Success stories such as that of BYJU’s has inspired more edtech startups and entrepreneurs to move to Bengaluru.
(IoT) for Startups & Entrepreneurs in Bengaluru
Bengaluru is home to 504 companies in the Indian IoT space which consists of 1000 companies. 2017 turned out to be a historic year for this segment as it saw a 100% growth from the previous year which indicates the fast growth of the sub-sector in the city. Startups in these segments are supported and nurtured by initiatives like the Intel India Maker Lab which has helped more than 50 companies by offering support in various ways. This support has been in the form of mentorship and providing technology and the right infrastructure.
Fintech Sector for Startups & Entrepreneurs in Bengaluru
The fintech sub-sector in Bengaluru shines in the tech niche with the highest amount of venture capital funding. Fintech startups in Bengaluru have been responsible for bringing in 20% of the total local venture capital funds in the region between 2012 and 2017. Startups like Razorpay Modern and Capital Float are important flag bearers of the sub-sector. Razorpay Modern, a payment gateway solutions provider, got $20 million through Series B round of funding and the online capital finance provider platform, Capital Float, got $45 million in funding in 2017.
The startup culture in Bengaluru is fuelled not only with the startups and investors but also with the help of the vital ecosystem partners. Startups moving to Bengaluru are continually growing with the help of ecosystem partners like:
The India Network
Global Incubation Services
The plethora of benefits for foreign investors, a supportive government, and a ripe pool of talent have inspired hundreds of entrepreneurs, startups, and startup job seekers to move to Bengaluru. The city has a vibrant and active social life offering ample outlets for releasing stress after a long day at work. The town is blessed with the right blend of greenery and top-notch business infrastructure making it a great place to live and work mainly for tech professionals.