Startup Cities to Watch in 2025: Bengaluru Remains India’s Innovation Capital
Sat Dec 27 2025
Bengaluru has once again emerged as India’s leading startup hub in 2025, according to the third edition of the India’s Top 200 Self-Made Entrepreneurs of the Millennia list released by IDFC FIRST Private Banking and Hurun India.
The city continues to dominate both as a founder residence hub and as a company headquarters location, reinforcing its position as the country’s innovation capital. At the same time, the data points to a gradual but meaningful decentralisation of India’s startup ecosystem.
Bengaluru: Still on Top, But Decentralisation Begins
In 2025:
- 88 founders on the list reside in Bengaluru
- 52 companies are headquartered in the city
However, this represents a decline of 14 company headquarters compared to last year, indicating that while Bengaluru remains dominant, other cities are increasingly sharing the startup spotlight.
The trend suggests that founders are becoming more comfortable building and scaling companies outside a single geographic hub.
Mumbai and Gurugram Are Closing the Gap
Mumbai: Capital Meets Consumer Scale
Mumbai ranks second among India’s startup cities:
- 83 founders reside in Mumbai
- 41 companies are headquartered there
- +5 companies year-on-year
The city continues to attract founders in consumer brands, fintech, retail, and marketplaces, benefiting from proximity to capital markets, investors, and large consumer bases.
Gurugram: Consumer Internet Powerhouse
Gurugram holds the third position:
- 36 company headquarters
- 32 founders
- +5 companies year-on-year
Its growth reflects sustained momentum in consumer internet, food delivery, mobility, and enterprise services, with several large-scale startups anchoring the city’s identity.
Founder Residence vs Company Headquarters
Interestingly, New Delhi continues to play a major role as a founder residence hub, even if fewer companies are headquartered there:
- 52 founders reside in New Delhi
- Only ~10 companies are headquartered in the city
This highlights a growing trend where founders live in one city while building companies registered or operationally based elsewhere.
Founders Defining India’s Startup Hubs
Bengaluru’s influence is reinforced by some of India’s most prominent entrepreneurs, including:
- Nikhil Kamath (Zerodha)
- Harsh Jain
- Harshil Mathur
- Sriharsha Majety & Nandan Reddy
Mumbai’s ecosystem is shaped by leaders such as:
- Radhakishan Damani (Avenue Supermarts / DMart)
- Falguni Nayar (Nykaa)
In Gurugram, companies like Eternal, led by Deepinder Goyal, continue to define the city’s startup narrative.
The Rise of Tier-2 and Emerging Startup Cities
Beyond the top three, the data highlights a broader geographic spread of entrepreneurship across India:
- Chennai: 11 companies, 15 founders
- Pune: 8 companies, 13 founders
- Hyderabad: 8 companies, 12 founders
- Noida: 7 companies
- Ahmedabad: 5 companies, 9 founders
- Jaipur & Kolkata: 4 companies each
This steady rise of Tier-2 cities reflects improvements in digital infrastructure, local talent availability, and investor openness to backing startups beyond traditional hubs.
Education Continues to Shape Founder Pipelines
Educational institutions remain a strong predictor of entrepreneurial success:
Undergraduate Institutions
- IIT Delhi leads with 38 founders
- Followed by University of Delhi and IIT Kharagpur
Postgraduate Institutions
- IIM Ahmedabad tops the list
- Followed by IIM Calcutta and Indian School of Business (ISB)
The data underscores how India’s premier institutions continue to feed talent into the startup ecosystem.
Women-Led Entrepreneurship Gains Scale
Women entrepreneurs are playing an increasingly visible role at the top end of India’s startup landscape.
- Falguni Nayar and Adwaita Nayar lead the women founders’ rankings
- Nykaa is valued at ₹67,500 crore, making it one of the most valuable women-led enterprises in the country
This highlights not just participation, but scale and leadership in women-led startups.
A More Distributed Startup Future
While Bengaluru remains India’s undisputed startup capital, the rise of Mumbai, Gurugram, and multiple Tier-2 cities signals a more balanced and resilient ecosystem.
Capital, talent, and ambition are no longer concentrated in a single city. Instead, India’s startup story in 2025 is one of geographic diversification, stronger regional ecosystems, and broader opportunity.
Final Takeaway
Bengaluru still sets the pace—but it no longer runs alone.
As India’s startup ecosystem matures, the shift toward multi-city innovation could prove to be its greatest strength. A wider distribution of founders and companies makes the ecosystem more adaptable, inclusive, and globally competitive.
In 2025, India’s startup map is no longer a single dot—it’s a growing constellation.
Sat Dec 27 2025
