Economic Survey 2022: Delhi replaces Bengaluru as startup capital

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Delhi has replaced Bengaluru as India’s startup capital by adding more startups in the last two years, the government noted in its pre-budget Economic Survey. The trend is also reflected in startups which are listing on stock markets, including Zomato, Policybazaar, Delhivery and Oyo.

Over 5,000 recognised startups were added in Delhi while 4,514 startups were added in Bengaluru between April 2019 and December 2021, the survey said, which considers startups registered under the government’s Department for Promotion of Industry and Internal Trade (DPIIT). Meanwhile, Maharashtra has the highest number of recognised startups at 11,308. 

India also created 44 unicorn startups in 2021- private companies valued at over a billion dollars --far surpassing previous years and catapulting the country past the UK and now only trailing the US and China by the number of unicorns. The US and China added 487 and 301 unicorns in 2021 respectively.

India’s 83 unicorns over the years have a total valuation of $277.7 billion, the survey said. Indian startups raised over $35 billion in 2021, as the pandemic spurred new levels of digital adoption, brought users from smaller towns and cities online, and a government-fuelled liquidity boom helped companies raise more capital than ever before at unprecedented valuations.