With a staggering 154% year-on-year (YoY) growth, Mumbai’s startup funding soared to $3.7 Bn in 2024, up from just $1.5 Bn in the previous year
Mumbai also outpaced Bengaluru in median ticket sizes, up 15% YoY to $3.4 Mn. However, the city lagged behind Bengaluru in terms of deal count
Growth-stage startups in the city raised $472 Mn+ in 2024, an increase of 28% YoY. The deal count also grew 67% YoY to 50 deals
After hitting a seven-year funding low during the extended funding winter of 2023, the Indian startup ecosystem is showing steady signs of recovery in 2024. Total funding raised by Indian startups surged by 20% year-on-year (YoY) to $12 Bn, returning to levels last seen in 2020.
While the uptick in the overall funding has given the founders a reason to cherish, all while raising expectations of a better 2025, the key highlight of the 2024 funding trend was Mumbai toppling Bengaluru to become the most funded startup hub of the country, according to Inc42’s Indian Startup Funding Report 2024.
With a staggering 154% year-on-year (YoY) growth, Mumbai’s startup funding soared to $3.7 Bn in 2024, up from just $1.5 Bn in the previous year.
Notably, this increase can be attributed to Zepto’s multiple mega funding deals during the year. The quick commerce giant first raised $665 Mn in its Series F funding round in June 2024, almost doubling its valuation from $1.5 Bn to $3.6 Bn.
Following this, the quick-commerce major raised $340 Mn in August and another $350 Mn in November. With this, Zepto accounted for 37% of the total funding raised by Mumbai in 2024.
It is important to note that Zepto moved its base to Bengaluru from Mumbai this year. However, its funding rounds have been attributed to Mumbai to maintain data consistency.
Mumbai Leads In Ticket Sizes But Lags In Deal Volume
Per Inc42’s latest report, Mumbai also outpaced Bengaluru in median ticket sizes, up 15% YoY to $3.4 Mn. However, the city lagged behind Bengaluru in terms of deal count.
Mumbai saw only a modest 4.5% growth in funding deals in 2024, with 175 transactions materialising during the year. In comparison, Bengaluru retained its position as the leader, recording 285 deals, up 14% from the 249 deals locked in 2023. The Delhi NCR region also outpaced Mumbai with 252 deals.
“Mumbai is undeniably an important hub, but certain factors have worked against the city. Big companies like Zepto moving out of Mumbai will have a significant impact. Previously, Ola also moved its base to Bengaluru from Mumbai. An ecosystem doesn’t flourish if major players don’t stay there after scaling up. When these companies scale, they need talent, but the lack of talent in the city at an affordable cost keeps hurting Mumbai’s prospects,” Rajesh Sawhney, the founder of GSF Accelerator, said.
Late Stage Funding Thrives But Base-Level Activity Remains Low
Mumbai witnessed a notable uptick in growth-stage funding and deal count in 2024. Growth-stage startups in the city raised $472 Mn+ in 2024, an increase of 28% YoY. The deal count also grew 67% YoY to 50 deals.
Besides the growth stage, late-stage funding in Mumbai experienced a 206% YoY surge to $3 Bn+. In addition, the number of late-stage deals surged 16% to 29 in 2024.
Among the top 10 funding deals in the Indian startup ecosystem in 2024, four came from Mumbai. Alongside Zepto, Mumbai-based startups PharmEasy, Eruditus, and Rebel Foods secured significant investments.
Healthtech unicorn PharmEasy raised $216.2 Mn in a down round led by the family office of Manipal Group chairman Ranjan Pai in April 2024. Edtech unicorn Eruditus followed in October, securing $150 Mn in a Series F round led by TPG’s global impact investing platform, The Rise Fund. In December, cloud kitchen unicorn Rebel Foods bagged $210 Mn in Series G funding led by Temasek.
In contrast, early-stage funding in Mumbai saw a 21% YoY increase, reaching $137 Mn in 2024. Meanwhile, the number of early-stage deals declined by 13% to 70.
“Mumbai is losing talent and startups to Bengaluru, as most new founders come from larger startups or big tech companies. As large companies are moving out of Mumbai, future entrepreneurs are also moving out. Despite having the largest pool of capital, the city lacks enough new startups, leading to low seed-stage activity,” Sawhney said.
But What’s In Store For Mumbai-Based Startups?
The founder of GSF Accelerator added that consumption remains high in Mumbai, and the city continues to be a financial hub, with Bollywood, entertainment, and media industries at its core. As a result, sectors like media tech, D2C brands, and other innovations are likely to emerge from the region.
The Maharashtra government is also taking many initiatives for startups. Maharashtra’s industries minister Uday Samant has said that the state is looking to expand its startup portfolio from the current 8,300 to 50,000 soon.
On the brighter side, startups are increasingly looking at Maharashtra as a key destination for setting up their manufacturing units, fuelled by the state’s proactive government initiatives. Last year, Ather Energy, an IPO-bound electric two-wheeler maker, announced plans to establish its third manufacturing facility in the state to produce e-scooters and battery packs.
In another significant development, Maharashtra’s cabinet approved Adani Group’s proposal to set up a $10 Bn semiconductor manufacturing plant in collaboration with Israel’s Tower Semiconductor, further bolstering India’s ambition to become a global hub for chip manufacturing.
Maharashtra’s startup ecosystem is also seeing a boost from IIT Bombay’s Society for Innovation & Entrepreneurship (SINE), which is launching an INR 100 Cr, maiden VC fund to support tech-focused startups. With these strategic investments and initiatives in place, the future of startups in Mumbai looks promising despite the challenges it is facing.
[Edited by Shishir Parasher]
