In 2024, Mumbai Overtakes Bengaluru as the Most-Funded Startup Hub in India

Nitin Konde, Varun Bhardwaj

Jan 7, 2025 — 5 min read

Mumbai Surpasses Bengaluru as India’s Top-Funded Startup Hub in 2024

The Indian startup environment is steadily improving in 2024 after plunging to a seven-year financing low during the extended funding winter of 2023. At $12 billion, the total amount of money raised by Indian entrepreneurs increased 20% year over year (YoY), reaching levels last observed in 2020.

The main highlight of the 2024 funding trend was Mumbai surpassing Bengaluru to become the nation's most funded startup hub, according to the Indian Startup Funding Report 2024, even though the increase in overall funding has given the founders something to be grateful for and raised hopes for a better 2025. Mumbai's startup funding skyrocketed to $3.7 billion in 2024, up from just $1.5 billion the year before, with an astounding 154% year-over-year (YoY) growth.

Speaking on this development, Tanay Sharma, COO & Co- Founder, CITTA, sated "It’s exciting to see Mumbai overtaking Bengaluru as India’s most-funded startup hub in 2024. For years, Bengaluru has been the go-to city for startups, often called the ‘Silicon Valley of India,’ but Mumbai’s rise underscores the city’s versatility and growing appeal as a startup destination. Mumbai brings its own unique advantages to the table. Being the financial capital, it naturally attracts a strong investor network. Add to that its access to diverse industries like media, entertainment, fintech, and real estate, and it’s no surprise that the city is drawing significant startup funding."

Similar thoughts were echoed by Shreya Sharma, Founder, Rest The Case, she added, "Mumbai’s rise as India’s most-funded startup hub in 2024 isn’t just a reshuffling of numbers—it’s a powerful story of how the Indian startup ecosystem is evolving. From attracting $3.7 billion in funding—a staggering 154% jump from the $1.5 billion it raised in 2023—to dethroning Bengaluru, Mumbai is proving it’s more than just the financial capital; it’s the future of entrepreneurship. What’s driving this shift? It’s Mumbai’s unique blend of financial institutions, diverse talent, and the city’s relentless energy. Sectors like fintech, media, and consumer-focused startups have found their footing here, bringing a fresh perspective to India’s startup landscape."

Why Mumbai Notched Ahead of Bengaluru?

Zepto's numerous large finance arrangements during the year are partly responsible for this surge. In June 2024, the fast commerce juggernaut raised $665 million in its Series F fundraising round, nearly doubling its valuation from $1.5 billion to $3.6 billion. In August and November, the quick-commerce giant raised a further $340 million and $350 million, respectively. As a result, Zepto contributed 37% of Mumbai's overall 2024 fundraising boost. Notably, Zepto relocated its headquarters from Mumbai to Bengaluru this year. To keep the data consistent, Mumbai has been given credit for its funding rounds.

"Zepto, this rising star contributed a whopping $1.3 billion to Mumbai’s total funding in 2024, showcasing how game-changing ideas are finding solid ground in the city. While Bengaluru still leads in the sheer number of deals (285 in 2024 compared to Mumbai’s 175), Mumbai’s growth signals that India is no longer a one-hub nation," opined Sharma.

In terms of median ticket sizes, Mumbai also surpassed Bengaluru, rising 15% year over year to $3.4 million. But when it came to the number of deals, the city trailed Bengaluru. In 2024, Mumbai had a meagre 4.5% increase in investment deals, with 175 projects coming to fruition. Bengaluru, in contrast, continued to hold the top spot with 285 transactions, which is 14% more than the 249 deals that were signed in 2023.

Why Bengaluru is Still a Major Player?

Mumbai is unquestionably a significant hub, but the city has suffered from a few issues. The departure of major corporations like Zepto from Mumbai would have a big effect. In the past, Ola has relocated its headquarters from Mumbai to Bengaluru. If key actors leave an ecosystem after it has grown, it will not thrive. According to Rajesh Sawhney, the creator of GSF Accelerator, these businesses require people as they grow, but Mumbai's prospects are continually harmed by the city's inability to get talent at a reasonable price.

Since the majority of new founders come from larger startups or huge tech businesses, Bengaluru is gaining talent and startups from Mumbai. Future business owners are leaving Mumbai at the same time that big corporations are. He continued by saying that even though the city has the biggest pool of cash, there aren't enough new businesses there, which results in little seed-stage activity.

While Base-Level Activity is Still Low, Late-Stage Funding is Flourishing

In 2024, Mumbai saw a significant increase in the number of growth-stage investment deals. In 2024, the city's growth-stage startups raised $472 million or more, a 28% year-over-year increase. Additionally, the number of deals increased 67% year over year to 50 deals. In addition to the growth stage, Mumbai's late-stage funding saw a 206% YoY increase to $3 billion or more. Furthermore, in 2024, there were 29 late-stage deals, a 16% increase.

Mumbai accounted for four of the top ten investment deals in the Indian startup ecosystem in 2024. In addition to Zepto, notable investments were obtained by Mumbai-based startups PharmEasy, Eruditus, and Rebel Foods. In April 2024, the Manipal Group chairman Ranjan Pai's family office led a $216.2 million fundraising round for the healthtech unicorn PharmEasy. Following in October, Edtech unicorn Eruditus raised $150 million in a Series F investment spearheaded by TPG's global impact investing platform. Temasek led the $210 million Series G investment round for cloud kitchen unicorn Rebel Foods in December.

What's Up Next For Startups In Mumbai?

Mumbai's consumption is still high, and the city is still a financial centre with the media, entertainment, and Bollywood sectors at its heart. Consequently, the region is expected to produce advances in areas such as media technology and direct-to-consumer businesses. Additionally, the Maharashtra government is launching numerous startup initiatives. According to Uday Samant, the minister of industries for Maharashtra, the state hopes to increase the number of startups it has from the current 8,300 to 50,000 in the near future.

The good news is that, thanks to the state's proactive government measures, startups are seeing Maharashtra as a prime location to establish their manufacturing operations. The IPO-bound electric two-wheeler manufacturer Ather Energy said last year that it would open its third factory in the state to construct battery packs and e-scooters. India's goal to become a global centre for chip production was further strengthened when the Maharashtra cabinet approved Adani Group's plan to establish a $10 billion semiconductor manufacturing facility in partnership with Israel's Tower Semiconductor. IIT Bombay's Society for Innovation & Entrepreneurship (SINE) is also bolstering Maharashtra's startup scene by establishing its first venture capital fund, worth INR 100 Cr, to assist tech-focused firms.