Mumbai becomes India’s most-funded startup hub in 2024

India has cemented its position as the world’s third-largest startup ecosystem in 2024, boasting over 140,000 startups registered with the Department for Promotion of Industry and Internal Trade.

This marks a steep climb from 50,000 startups in 2018. In addition, the combined valuation of India’s top companies has grown by 20% over the past year, reaching an estimated Rs 36 lakh crore. 

Growth of India’s Startup ecosystem  

India’s meteoric rise as a global innovation hub is evident from its jump in registered startups and the growing investor interest. Multiple factors, including a thriving talent pool, technological advancements, and supportive government policies, have helped fuel this expansion.

The numbers highlight an ecosystem on the move, with entrepreneurs now finding greater opportunities to secure funding and scale their ventures.

Mumbai emerges as a funding powerhouse  

In a notable shift, Mumbai has surpassed Bengaluru as the most-funded startup hub in 2024, according to the Indian Startup Funding Report. Investment in Mumbai-based startups surged by 154% year-on-year, rising from $1.5 billion in 2023 to $3.7 billion this year.

According to reports, the city’s strong footing as India’s financial capital, along with its established media and entertainment sectors, has positioned it well for fintech, D2C brands, and media technology ventures. Maharashtra government initiatives, such as streamlined regulations and incubation programs, have further strengthened Mumbai’s startup environment.

Key deals  

Mumbai-based startups have secured the top funding rounds this year. Grocery delivery platform Zepto raised $665 million, while health-tech leader PharmEasy received $216.2 million in a down round that still underscores its continued market leadership.

Rebel Foods, recognized as the world’s largest multi-brand cloud kitchen platform, netted $210 million in Series G funding to expand internationally.

Beauty and lifestyle company Nykaa also witnessed 35% year-on-year revenue growth, supported by larger funding rounds and a widened product range.

State government support

The Maharashtra government has actively promoted entrepreneurship through tax benefits, dedicated funding schemes, and a supportive regulatory framework.

These efforts, combined with Mumbai’s broad access to talent and stable infrastructure, have drawn the attention of global investors, who see long-term potential in the city’s growing startup base. Experts believe these conditions contribute to Mumbai’s rising influence in India’s entrepreneurial scene.