A recent comment by Zomato CEO Deepinder Goyal has reignited the longstanding debate about which Indian city offers the best environment for startups. During an event hosted by The Economic Times, Goyal stated that entrepreneurs do not need to be based in Bengaluru to succeed, challenging the common perception of the city as India's startup capital. His remark has prompted further discussion, with contrasting opinions from other industry leaders.
Shantanu Deshpande, CEO of Bombay Shaving Company, also joined the debate, claiming that Delhi offers a better environment for building businesses than Bengaluru. In an interview with YouTuber Ishan Sharma, Deshpande asserted that Delhi is "1,000 per cent" better for starting a business, explaining that the city’s focus on substance rather than appearances makes it an ideal place for entrepreneurs.
Deshpande elaborated on his perspective, explaining that while Bengaluru is often compared to Silicon Valley due to its concentration of disruptive startups, Delhi fosters more consistent, high-quality ventures. “The average high-quality business has more chances of coming out of Delhi than Bengaluru,” he said, adding that the startup ecosystem in Delhi tends to focus on steady, sustainable growth rather than pursuing the latest trends.
Referring to Bengaluru’s startup culture, Deshpande described it as being driven by what he called “froth”—a focus on flashy innovations. While acknowledging the groundbreaking work emerging from Bengaluru, he noted that Delhi’s business culture prioritises substance, which he views as a significant advantage for entrepreneurs.
Drawing from his own experience, Deshpande highlighted the strength of Delhi’s talent pool. He noted that the presence of major companies like Zomato, Paytm, and Snapdeal provided a rich source of talent for new businesses in the region. In contrast, he characterised Bengaluru and Pune as more service-oriented cities, arguing that Delhi’s business culture is stronger and more conducive to nurturing entrepreneurial ventures.
Deshpande, who has previously faced public criticism for advising young employees to work 18-hour days, stated that his own company benefited from the resources available in Delhi. “Delhi has a very strong business culture,” he said, citing this as a key factor in the city’s advantage over other startup hubs.
Zomato CEO Deepinder Goyal’s remarks added another dimension to the debate. Speaking about his personal experiences, Goyal noted that he had not been to Bengaluru since 2017, stressing that an entrepreneur’s success is not bound to any particular location. "You don't need to come here to build a startup. That's just what people here think, but it's not the case," he said, adding that his own company, Zomato, operates successfully from Gurgaon.
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