Get All Access for $5/mo

What's Driving the Startup Ecosystem in Mumbai? Understanding the hidden potential in Mumbai's disruptive organizations

By Aastha Singal

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pixabay

Regarded as the financial hub of India, Mumbai is not far behind than other metro cities when talked about adopting the startup culture. When the entire nation is swept by the wave of technology, this megacity is not immune to the power it holds. However, unlike the southern cities, this Maratha land is driven by the organizations operating in fintech and enterprise tech spaces.

The city not only houses the world's biggest entertainment industry residing in its heart but also has multiple legacy businesses, conglomerates and financial institutions running their operations here. While the condescending attitude of family organizations during the years of startup innovations was a problem but increasing government support and flourishing ecosystem has turned the tables.

Mushrooming Angels

Mumbai's high-end nightlife, financial power and intellectual background make it an attractive market for young entrepreneurs to set up their innovative ventures in. Understanding the hidden potential in these disruptive organizations, established businesses are extending a helping hand towards the budding startups through angel investments.

Many entrepreneurial veterans including Anand Mahindra, Azim Premji and others have been actively pumping in money into the startup ecosystem, providing the skilled leaders with financial support. Reliance's recent investment in the conversational AI startup Haptik is an investment that corporates do acknowledge the talent.

Infrastructural Challenges

What push the younger lot towards southern cities for establishing their startups are Mumbai's sky-rocketing real estate prices, traffic situation and the overly noisy environment. While the fostering culture of co-working spaces, cabs taking the ownership of city roads and the availability of convenient home-delivery services has worked well, there's a long way to go.

Maharashtra government has been time and again criticized for not taking enough initiatives to handhold the startups. The past year, however, has been different. Not only did the state government sanctioned a network of 16 startup incubator centres across the state to promote the state's entrepreneurial talent and provide them with a startup ecosystem, but it also took the onus of inviting startups for long-term Business-to-Government (B2G) collaborations.

Learning Opportunities

The house of big names like Justdial, Bookmyshow, Toppr, Ola Cabs, Pepperfry, Cleartrip and Quikr, Mumbai today holds the third position in terms of overall funding activity in India. To further catalyse the growth of startups in the state, the Maharashtra government recently organized the Maharashtra Startup Week.

Aastha Singal

Entrepreneur Staff

Former Features Writer

A business journalist looking to find happiness in the world of startups, investments, MSMEs and more. Officially started her career as a news reporter for News World India, Aastha had short stints with NDTV and NewsX. A true optimist seeking to make a difference, she is a comic junkie who'd rather watch a typical Bollywood masala than a Hollywood blockbuster. 

Business News

How to Be a Billionaire By 25, According to a College Dropout Turned CEO Worth $1.6 Billion

Austin Russell became the world's youngest self-made billionaire in 2020 at age 25.

Technology

India Needs Homegrown Product Companies In Semiconductor: Cadence Design's India MD

Most multinationals retain product ownership, key value and intellectual property at their headquarters. As a result, India, despite having a vast pool of design talent, lacks significant Indian product companies in the semiconductor industry, says Jaswinder Ahuja, MD, India Cadence Design Systems.

Starting a Business

3 Things to Consider Before Your Perfect Business Partner Becomes Your Perfect Disaster

There are many reasons for start-up businesses' high failure rate, including lack of cash, not doing enough research and poor marketing. But this one reason is definitely not getting enough attention.

Growing a Business

5 Insights I Learned While Growing My Business from a Startup to a 500-person Company

Scaling a startup from 10 people to 5 hundred is thrilling, but navigating the growth can be tricky. Here are 5 hard-won insights to help you transform your startup into a structured business with a clear roadmap and the right team behind you.

Buying / Investing in Business

I'm a VC With Over 50 Startup Investments. Here Are the 4 Secrets to Securing Funding for Your Ventures.

Investor relationships are crucial in most businesses, but navigating them is no walk in the park. These insider tips from a former founder and current venture capitalist reveal how entrepreneurs can tap into the investor mindset and masterfully manage investor relations.

Living

Taylor Swift Has a Lucky Number. And She's Not the Only High Performer Who Leans Into Superstitions to Boost Confidence.

Even megastars like Swift need a little extra something to get them in the right mindset when it is game time.