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Zomato CEO Deepinder Goyal recently reignited a long-standing debate by suggesting that Bengaluru may not be the only hotspot for Indian startups. His comment that entrepreneurs do not need to be in Bengaluru to launch a successful business has sparked discussions about which Indian city truly deserves the title of the nation’s startup capital. Adding fuel to the debate, Bombay Shaving Company CEO Shantanu Deshpande weighed in, boldly asserting that Delhi is “1,000 per cent better” than Bengaluru for starting a business.
‘Delhi Has Less Froth, More Substance’
In an interview with Bengaluru-based YouTuber Ishan Sharma, Deshpande shared his view that Delhi is the best city for entrepreneurs today, highlighting its pragmatic, business-focused culture. “Delhi has a ‘less froth, more substance’ mindset,” Deshpande remarked. He went on to explain that by “froth,” he was referring to a tendency in Bengaluru to chase after shiny, new ventures without always focusing on long-term stability.
“Bangalore is very similar to Silicon Valley,” Deshpande admitted, noting that the city has the potential for disruptive innovation. However, he emphasized that while Bengaluru might produce more breakthrough businesses, Delhi is more conducive to building stable, high-quality companies. “The average high-quality business has more chances of coming out of Delhi than Bangalore,” he said.
Strong Business Culture in Delhi-NCR
Deshpande attributed Delhi’s advantage to its strong business culture and the availability of top-tier talent, particularly in the National Capital Region (NCR). He shared his personal experience of starting Bombay Shaving Company in Delhi, where he was able to tap into a robust pool of talent from companies like Zomato, Paytm, and Snapdeal.
“Delhi has a very strong business culture,” Deshpande said, underscoring how the city’s entrepreneurial environment is bolstered by large corporations and established businesses headquartered in the region. In comparison, he characterized Bengaluru and Pune as “more service-oriented,” implying that their business landscapes are largely dominated by IT services and outsourcing, rather than product-driven startups.
Goyal’s Take: No Need to Be in Bengaluru
Deshpande’s comments follow Zomato CEO Deepinder Goyal’s statement, made at an event hosted by The Economic Times, where Goyal questioned the conventional wisdom that Bengaluru is the only city where startups can thrive. Goyal revealed that he hasn’t been to Bengaluru since 2017 and stressed that it’s possible to build a successful startup outside of the Karnataka capital.
“You don’t need to come here to build a startup. That’s just what people here think, but it’s not the case,” Goyal said. His remarks prompted various responses from the entrepreneurial community, some of whom defended Bengaluru’s reputation as India’s Silicon Valley, while others pointed to the growing success of startups in cities like Delhi-NCR, Mumbai, and Pune.
Industry Reactions and Criticism
The debate has divided opinions within India’s startup ecosystem. Supporters of Bengaluru argue that the city’s ecosystem, which includes a concentration of venture capitalists, incubators, and tech talent, makes it the ideal launchpad for new businesses. Critics, however, echo Deshpande’s sentiment, suggesting that the hype around Bengaluru often overlooks the advantages that other cities, particularly Delhi, offer in terms of business opportunities and operational resources.
Deshpande’s own reputation adds another layer to this debate. Two years ago, the Bombay Shaving Company CEO faced a severe backlash on social media after advising freshers to work 18-hour days to succeed in their careers. Despite this, Deshpande continues to voice strong opinions about business culture, particularly in the Indian startup scene.
The Bigger Picture: Is There One “Best” City?
As India continues to grow as a hub for innovation, the question of which city is best for startups becomes more complex. Bengaluru’s position as India’s “Silicon Valley” is undisputed in terms of innovation and technology. However, other cities like Delhi-NCR, Mumbai, and Pune are proving to be formidable contenders, offering a different set of advantages for entrepreneurs.
While disruptive tech startups might thrive in Bengaluru, Delhi-NCR is increasingly being seen as a better location for companies looking to build long-term, sustainable businesses. In the end, the best city for a startup may depend less on location and more on the nature of the business itself. As Goyal pointed out, success is possible in any city—if the entrepreneur knows how to leverage the resources available to them.
