PremiumIn 2021, Bangalore also beat out both Beijing and Shanghai in the amount of venture capital raised and number of rounds, according to London & Partners and Dealroom.
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Bengaluru's tech ecosystem value is at $105 billion which is higher than that of Singapore at $89 billion and Tokyo at $62 billion, a report showed on Tuesday.
As per the report released by the policy advisory and research firm Startup Genome, the city has moved up to number 22 in the Global Startup Ecosystem ranking.
In 2021, Bangalore also beat out both Beijing and Shanghai in the amount of venture capital raised and number of rounds, according to London & Partners and Dealroom.
The Indian city which is home to the R&D centers of some of the world’s most famous tech companies, including Amazon, Microsoft, Facebook, and Google. Its IT sector employs over four million people, and accounts for an estimated $130 billion in exports every year.
“Bengaluru-Karnataka Innovation Ecosystem has catalyzed and scaled up startups at an unprecedented pace. This nurturing ecosystem has steadily given birth to numerous unicorns and is now evidencing signs of logarithmic growth," said Dr CN Ashwath Narayan, Minister of Science & Technology, Higher Education & Information Technology and Biotechnology, Government of Karnataka.
The Government of Karnataka was the first Indian state government to establish a dedicated Startup Cell to promote its ecosystem.
The Innovate Karnataka provides financial support to startups through various funds and Idea2PoC grants, which provide early-stage funding to concepts that have yet to establish proof of concept.
The Karnataka Digital Economy Mission launched the Beyond Bengaluru Startup Grid in November 2021 to support startups in the state outside of Bengaluru, and a startup incubation center set up by the Bangalore Chamber of Industry and Commerce opened in February 2022.
The Maruti Suzuki Incubation Program aims to help startups develop industry-ready solutions and become large-scale businesses. Karnataka took home 30% of the total startup awards at the National Startup Awards 2021, during Startup India Innovation Week.
Apart from Bengaluru, several Indian ecosystems have risen in the rankings, most notably Delhi, which is 11 places higher than in 2021, entering the top 30 for the first time at number 26, the report highlighted.
“India has seen a rapid rise in the number of large exits and early-stage rounds, and a substantial increase in Ecosystem Value. The nation produced 44 unicorns in 2021, and exits rose to $14 billion — a 10-fold increase over 2020. Delhi and Mumbai joined Bangalore in the top 40," the report said.
India’s recent success is reflected in both Chennai (tied at 31–40) and Pune (tied at 51–60) moving up in the rankings. The Chennai ecosystem saw a $1 billion exit in business software startup Freshworks, which moved to Silicon Valley after founding in India," the report showed.
Mumbai’s has moved out of the Emerging Ecosystems ranking and into the global overall rankings (tied at number 36). Three exits over $1 billion (including Nykka’s $7 billion valuation at IPO) and six unicorns contributed to the move.
On the other hand, China’s ecosystems suffered a decline in the ranking. The performance of Chinese startup hubs is declining for the first time since the global startup ecosystem ranking report has been published. Eight of the 13 cities studied fell in this year’s rankings.