The Indian startup ecosystem entered 2026 amid a quiet but consequential reset. While the traditional power centres — Bengaluru, Delhi-NCR and Mumbai — continued to command the lion’s share of investor capital, the year also marked a decisive broadening of India’s startup map, with several non-metro and emerging cities stepping firmly into the spotlight.

According to Inc42’s Annual Indian Startup Trends Report 2025, Bengaluru retained its position as the country’s most-funded startup hub, with startups headquartered in the city raising $4.5 Bn across 300 deals during the year.

Delhi-NCR followed at a distant second with $2.2 Bn in funding with 224 deals, while Mumbai-based startups raised close to $2 Bn in about 146 deals in 2025. Together, the top three hubs continued to account for a majority of startup capital deployed in India, underlining their entrenched dominance within the ecosystem.

However, beneath this concentration of capital, 2025 also witnessed growing investor momentum building in a new cohort of cities. Hyderabad, Pune, Chennai and a handful of others increasingly emerged as credible alternatives for founders and investors alike, supported by improving deal flow, sectoral depth and policy backing.

Hyderabad, in particular, stood out among the emerging hubs. While startups based in the city raised around $287 Mn across 32 deals during the year, investor sentiment appears to be shifting in the startup hubs’ favour moving forward.

As per Inc42’s 2025 investor survey, 45% of respondents identified Hyderabad as the next potential epicentre of India’s startup ecosystem — the highest share among all emerging cities.

Further, Pune and Chennai continued to remain at the centre of investor attention beyond the top three hubs. While startups in the city raised $450 Mn across 39 deals, Chennai startups also managed to bag $432 Mn across 30 deals this year.

This decentralisation trend in the startup ecosystem has........

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