Written By Puja Bhardwaj
Delhi NCR obtained 40% of total startup funding in India in Q1 2025, where the IT hub, Bengaluru, secured 26% of total funding, according to Tracxn’s Geo Quarterly India Tech Report. In the first quarter of 2025, the tech startups in the country received $2.5 billion in funding, reflecting a 13.64% increment compared to the last quarter. This growth demonstrates the trust and confidence of investors in the Indian startup landscape, with Delhi leading the charge. As reported by NASSCOM, Bengaluru still houses the most numerous tech startups; Delhi-NCR is thriving fast, with 25% of yearly growth as compared to Bengaluru’s 15%.
Being a metropolitan city with robust infrastructure and being the national capital gives Delhi NCR a leading edge over Bengaluru in different aspects, like purchasing power and addressable base. For better clarity, Delhi’s per capita income, i.e., $5,607, and Bengaluru’s per capita income are $3,910; Delhi’s per capita income is 43% higher than that of Bengaluru. The total population of Delhi NCR is 46 Mn (2011 Census), while Bengaluru’s total population is 8.4 Mn. While Delhi NCR is emerging rapidly, combining profitability, sector diversity, and government proximity. The transition from growth-at-all-costs to sustainable revenue growth is visible here first.
While Delhi and Bangalore both are growing and face their own challenges, the numbers show where Indian startups are actually making money, that might change the startup game in the future.
Delhi’s Increasing Prominence
Bengaluru was earlier referred to as India’s Silicon Valley, but now it trails Delhi in terms of funding share. Last year, the major funding rounds that contributed to the expansion were in companies like Erisha E Mobility and Flipkart, which are Delhi-based companies. The flow of capital into these firms establishes the increasing significance of Delhi as a startup and tech hub.
This shift clearly showcases the decentralization of India’s startup ecosystem, with investors looking beyond tech hubs for new opportunities.
The Major Driving Factors
According to experts, there are several factors behind how Delhi surpassed Bengaluru:
- Delhi NCR has better infrastructure with connectivity and logistics support that enables companies to do business seamlessly.
- The increased support from the government and administration has played a pivotal role. Plus, startup-friendly policies and incentives are the game changers.
- The expanding network of incubators and accelerators is providing all the essential resources and mentorship startups require to begin and flourish.
- Delhi’s strategic location and talent pool let startup companies hire top-tier talent in their team and market proximity. The talent availability is crucial, and the concept of work-from-home has allowed companies to hire from anywhere.
- It is a fact that Bengaluru has been the startup hub, ideal for growth and innovation. But over the years, Noida, Gurugram, and Delhi have been offering affordable commercial spaces that help startups cut costs.
- Numerous Delhi NCR-based startups, such as Zomato, Paytm, and Urban Company, have moved to Bengaluru to hire tech employees, but now, they find that talent in NCR is easily available.
Overall, Delhi-NCR’s rise to the top startup hub of the country is a testament to strategic growth, visionary entrepreneurship, and the evolving investor ecosystem of the city. With its solid infrastructure, startup-friendly policy, qualified talent, and successful IPOs, Delhi-NCR has captured all the limelight. Still, Bengaluru is the go-to for tech-heavy startups looking for large-scale investment with a deep talent pool and a mature tech ecosystem.
Frequently Asked Questions
Which are the top 5 startup cities in India?
Bengaluru, Mumbai, Delhi-NCR, Hyderabad, and Chennai are the top Indian startup cities for entrepreneurs, each offering unique industry benefits.
Which state in India has the highest number of startups?
Maharashtra stands at the top with the highest number of startups – 36,780. While the country has crossed 212,000+ registered startups across different states. The best part is that innovation is not limited to a few metro cities — it’s spreading rapidly across the country.
