Mumbai: The Financial Hub as the new city for Start-ups

By Hridkamal RoyThe land of opportunities has emerged as one of the top three startup destinations of the country. The influx of newbies in various verticals of the business ecosystem has taken the city of Mumbai to newer heights, once again establishing it as the financial capital of India.

According to a KPMG report that was published in Feb, 2019, the western part of the city of Mumbai has become home for some of the biggest business conglomerates and stock exchanges. The report further stated that the city was the headquarters to 14 percent of the 50,000 startups that got incepted in India by the end of 2018. Just after the Silicon Valley of India Bengaluru with 25 percent of the start-ups and the capital city of New Delhi with 21 percent of them, Mumbai has become the third largest populated city for start-ups.

Why Mumbai?

The presence of a massive consumer base, increasing number of co-working spaces and well connectivity with foreign countries has turned Mumbai into an attractive startup hub.

The city being the home to various experienced industrialists and the presence of prominent venture capital firms such as Sequoia Capital, Matrix Partners and others has a considerable capital which can get invested in new ideas. It is the presence of these personalities that are giving the startup ecosystem of the city a whole new boost in terms of consultancy and funding.

With the accommodation capability for 30 startups at a time and having office space of 15,000 square foot, the Indian Institute of Technology- Bombay (IIT-B) has built one of the largest startup incubators in India which goes by the name of Society for Innovation and Entrepreneurship (SINE).

State Government’s stance

Amidst all the developments that are taking place in the startup ecosystem of Mumbai, the state government have been highly criticised for not taking appropriate actions to facilitate it. If compared with the changes that are taking place in other states especially Karnataka and Telengana governments, there has been no proper disbursal of funds, access to government resources and there are not even special benefits for the start-ups that are growing from the state of Maharashtra.