“Most big ecosystems have multiple hubs,“ said Rajesh Sawhney , founder and CEO, GSF Accelerator. While the US has strong centres like New York, Boston, Austin, Seattle and Atlanta, besides Silicon Valley, China has Shanghai, Beijing and Shenzhen, he said. The data is based on the cities that companies are registered in. Ola and Quikr are registered in Mumbai, but have moved their headquarters to Bengaluru. The two ventures were the biggest fund raisers in the first half, with Ola raising $400 million and Quikr raising $150 million. If headquarters and where the CEO sits are taken as the basis for the data, Bengaluru still remains on top.
NCR has been a big base for multinational companies, and its big consumer market has created large consumer internet companies like Snapdeal, Paytm and Zomato. “NCR has a good balance, with talent that has good IT product experience, and the city is not expensive like Mumbai. Apart from the Powai area near Mumbai, it is difficult to find hardcore technology talent in Mumbai,“ said T C Meenakshisundaram, founder and MD of IDG Ven tures, a venture capital firm.
Snapdeal opened a technology centre in Bengaluru this year. “At scale, companies will find even NCR to be talentcrunched. You won’t find Bengaluru firms opening technology centres in NCR,“ said Meenakshisundaram, adding that Bengaluru will remain the Silicon Valley of India. Last year, the amount Bengaluru attracted was almost double that of NCR and thrice that of Mumbai. Chennai, Pune and Hyderabad were the other cities that attracted sizeable VC funds, but were almost one-fifth or onesixth for most years from 2011.
Pranay Chulet, CEO and co-founder, Quikr, an online classifieds portal that is valued at more than a billion dollars and which moved to Bengaluru six months ago, said, “Moving to Bengaluru was the right thing to do, and that is blindingly clear to us now.“