India is now home to the world’s third-largest startup ecosystem, with over 140,000 startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT) as of 2024. This is a significant jump from 50,000 startups in 2018. The combined valuation of India’s top companies has also grown by 20% over the past year, reaching an impressive INR 36 lakh crores.
In a surprising turn, Mumbai has overtaken Bengaluru as the country’s top startup funding hub. According to the Indian Startup Funding Report 2024, Mumbai’s funding soared by 154% year-on-year, rising from $1.5 billion in 2023 to $3.7 billion in 2024.
Major deals and key players
The top 10 funding rounds of 2024 have been dominated by Mumbai-based startups, with the city outpacing Bengaluru and Delhi NCR. Some of the standout deals include:
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Zepto: Raised $665 million to strengthen its position in the highly competitive grocery delivery market.
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PharmEasy: Secured $216.2 million in a down round, reaffirming its leadership in the health-tech sector.
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Rebel Foods: The world’s largest multi-brand cloud kitchen platform raised $210 million in Series G funding to support global expansion.
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Nykaa: Witnessed a 35% YoY revenue growth, fueled by larger funding rounds and an expanded product portfolio.
Other key reasons Mumbai’s growing influence
Mumbai’s rise as a startup hub is underpinned by its traditional strengths as a financial capital and its status as a global center for Bollywood, media, and entertainment. These industries provide a robust foundation for the emergence of media technology, direct-to-consumer (D2C) brands, and other innovative ventures.
Adding to this momentum, the Maharashtra government has launched several initiatives aimed at fostering the startup ecosystem.
