India’s startup ecosystem has grown rapidly over the past decade, driven by a large consumer base, strong investor confidence, favorable policies, and a robust talent pool — positioning the country as a global innovation hub.
At the center of this transformation is Bengaluru, home to over 16,000 startups and recipient of 47% of India’s $12B+ startup funding in 2024. The city hosts 1,536 venture capital firms, 2,256 corporate venture arms, and 17,000 angel investors. Deal volume rose 14% in 2024, with seed-stage startups raising $268 million — a 26% year-over-year increase. Key growth sectors include Spacetech, AI, and Cleantech.
Karnataka, with over 40 years of experience in the tech sector, now hosts more than 550 Global Capability Centers (GCCs), comprising nearly one-third of India’s total. These GCCs have evolved from shared services hubs to centers for R&D and intellectual property creation, underscoring the state’s leadership in high-value technology services.
The government is actively expanding the startup ecosystem beyond Bengaluru into emerging clusters like Mysuru, Mangaluru, and Hubbali-Belagavi-Dharwad. Initiatives like the Co-create Innovation project are fostering collaboration between startups and GCCs, enhancing innovation across the state.
Success stories such as PhonePe, RazorPay, Perfios, Groww, and Moneyview in Fintech; MathCo, ObserveAI, Sarvam, and Krutrim in AI; Digantara, Pixxel, and Satsure in Spacetech; Porter in Logistics; and Ather in EV highlight the ecosystem’s diversity and strength, cementing Karnataka’s status as a hub for entrepreneurship and innovation.
