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Why Bangalore is a Global Hub for Start-ups

Bangalore, known as the Silicon Valley of India, has evolved as a global hub for start-ups. Explore why this place is gaining the attention of entrepreneurs worldwide and Know why Bangalore is a Global Hub for Start-ups.

Bangalore, known as India's Silicon Valley is now one of the prominent start-up hubs not just in India but in the world. Starting in the 80s, India established Electronics City to draw multinational corporations and encourage the technological transformation of their city.

Recent statistics reveal that Bangalore now hosts over 10,000 start-ups worth an estimated $50 billion. These numbers attest to Bangalore's entrepreneurial spirit while creating an ideal ecosystem that helps start-ups grow successfully.

Bangalore stands out for both its impressive number of start-ups as well as significant venture capital funding. In 2020 alone, over $10 billion was invested into ventures located here - surpassing even San Francisco and London! This funding influx allowed start-ups in Bangalore to rapidly scale and enter new markets more effectively.

How and What made Bangalore one of the biggest hubs for start-ups If you are thinking about what made Bangalore one of the biggest hubs for start-ups, Find out below:

Overview of Bangalore's start-up ecosystem

Bangalore's start-up ecosystem is made up of a dynamic mix of entrepreneurs, investors, mentors, and incubators. This city provides co-working spaces, accelerators, and networking events that foster innovation and collaboration between startups. Not only this, startups here also enjoy support from organizations like the National Association of Software and Service Companies (NASSCOM) and Karnataka Biotechnology and Information Technology Services (KBITS), providing resources and guidance for entrepreneurial success.

Statistics and market trends showcasing the impact of start-ups in Bangalore:

Bangalore startups' impact can be gauged from their numbers as detailed below:

According to a report released by NASSCOM, Bangalore held 44% of India's start-up funding in 2020, attracting investments worth an estimated total of $4.2 billion. Flipkart, Swiggy, and Ola are among the many unicorns found here that have not only revolutionized their respective industries but have also created jobs and promoted economic development. Expert opinions on the factors contributing to Bangalore's success as a start-up hub:

Experts attribute Bangalore's success as a start-up hub to several factors.

First of all, its strong talent pool includes top educational institutions like IISc and IIM that produce skilled graduates for start-up ventures. Bangalore's supportive government policies - like the Karnataka Start-up Policy that offers incentives and exemptions to start-ups. It has created an inviting atmosphere for entrepreneurs. Venture capitalists and angel investors who fund promising start-ups also contribute greatly to Bangalore's success. What changes did it bring to Bangalore as a city and to India:

Bangalore's start-up scene has resulted in profound transformation both locally and nationally.

First and foremost, the start-up ecosystem has caused a shift in workspace culture, with co-working spaces and flexible work arrangements becoming commonplace. This allows entrepreneurs from different backgrounds to come together and share their vision and resources. Start-ups have led to an expansion of other industries in Bangalore, such as hospitality, real estate, and transportation, creating employment opportunities while strengthening local economies and raising salaries in general. Furthermore, India has gained international prominence as an incubator of innovative start-ups resulting from Bangalore's start-up success story. A Lot More that Defines How Bangalore has Become a Global Hub For Startups There is a lot more that defines how Bangalore has become a global hub for startups in every sector. Keep reading.

Factors influencing Bangalore's start-up scene:

Bangalore's vibrant start-up scene can be attributed to multiple factors.

Firstly, there are government policies that foster start-up growth. The Karnataka government's establishment of the Karnataka Startup Cell and Elevate 100 program provides startups with funding, mentorship, and networking opportunities. Access to funding has also played a critical role in Bangalore's start-up growth. There exists an established investor community here with venture capital firms, angel investors, and corporate funds actively investing in promising start-ups - this capital fuelled their expansion. Impact of start-ups on various sectors in Bangalore:

Start-ups have had an enormous impact in various sectors in Bangalore. Within technology, start-ups have driven innovation and disruption that led to cutting-edge solutions being created by companies like Flipkart and Ola in terms of e-commerce and transportation. Zoho and Freshworks were revolutionizers within the software industry, respectively.

E-commerce start-ups like Flipkart and Myntra have revolutionized retail shopping experiences while creating employment opportunities and contributing to overall economic development in cities around the country.

Start-ups like Practo and Portea Medical have used technology to offer accessible and cost-effective health solutions that bridge the gap between patients and providers. These platforms serve to bridge this divide.

What's Next: Now you might think about what lies ahead in India’s Silicon Valley, find what we expect below. Read on.

Predictions for Future Growth and Development:

According to a report released by NASSCOM, Bangalore boasts over 7,000 start-ups. Making it India's leading start-up hub and accounting for 20% of India's overall startup activity. It also brings a 20% surge due to the favorable policy environment and funding options available here.

Thanks to government initiatives like Digital India and Make in India, policy conditions that support start-ups have become conducive. Furthermore, increasing accessibility of funding options from both domestic and foreign investors could fuel further development in this city.

Emerging technologies such as artificial intelligence, blockchain, and the Internet of Things present start-ups in Bangalore with numerous opportunities. These technologies hold immense promise to disrupt various industries while creating innovative solutions. Furthermore, the growing demand for sustainable and clean technologies should stimulate further start-up growth within sectors like renewable energy or waste management.

Potential Challenges and Opportunities:

Bangalore's start-up ecosystem has experienced phenomenal growth over recent years; however, there remain several challenges it must navigate as part of this development process. One such issue is competition for talent; with new start-ups emerging each day, there are fewer qualified professionals available, and competition increases exponentially, resulting in rising talent costs. To sustain growth, it is vital that start-ups focus on recruiting and retaining staff for optimal business operations.

One challenge of start-up business ownership lies in continuous innovation and differentiation. Due to an ever-increasing number of start-ups entering certain sectors, competition may become intense in certain arenas; therefore, start-ups must adapt their offerings over time in order to remain ahead of their rivals and remain in their game.

Conclusion Bangalore's start-up ecosystem plays a pivotal role in driving economic development and progress. Generating employment opportunities, encouraging innovation, and drawing investment are just a few benefits it brings, while established start-ups and successful unicorns create ripple effects that lead to the growth of ancillary industries and the diversification of the economy overall. Bangalore's longstanding history as an incubator of technological progress, combined with its supportive infrastructure, makes it the ideal location for ambitious entrepreneurs looking to start businesses of their own. The start-up ecosystem here has become an engine of economic progress, which contributes to globally recognized success stories like Bangalore.

#real estate #startups #office space #commercial real estate

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Why do all electric vehicle companies occupy Warehouse and Industrial space in Hosur?

With the electric buzz that has taken the nation by storm, the Government is planning to develop EV parks in the same line as SEZ and pharma parks across the country. The EV park aims to house majority original equipment manufacturers, battery manufacturers, and charging infrastructure developers at one place. With the vision to develop an entire ecosystem at one same place, the Government plans to offer plug-and-play business models to EV industries who will set up their units in these parks. One such park is located in north western districts of Tamil Nadu, just across the Karnataka border from Bengaluru, which houses a number of new-age EV companies, such as, Ather Energy, Ola Electronics, Simple Energy, among others.

The Rise of Hosur Several factors have helped the Hosur belt boom with several big-ticket projects and investments in the region. The cluster witnessed two substantially high profile investments in the last couple of years, with Tata electronics setting up a ₹5,000-crore mobile components plant at Udhanapalli, and Ola, a ₹2,500-crore electric vehicle (EV) plant at nearby Pochampally. These massive investments triggered the new EV boom in Hosur, with EV companies preferring Hosur for putting up their manufacturing units given a competent ancillary supplier network, proximity to Bengaluru where corporate offices of these companies are located, plus amicable and skilled labour force in two-wheeler, automotive, and electronics segment.

Well-oiled Supply-chain Network The region is equipped with a strong supply-chain ecosystem, making it easier for the companies to locally source components necessary for manufacturing and assembly. This, in turn, would help us in improving cost and time efficiency for the businesses. Moreover, companies are prompting tier-2 suppliers to move their base to Hosur area, to make smaller components in the close vicinity to further add to the efficiency.

Financial SOP and Easier Admittance EV companies in the Hosur area are upheld by EV policy contrived by Tamil Nadu Government. The policy is drafted to support EV companies with repayment of SGST for electric vehicle producing, capital appropriation for battery fabricating, business motivation as far as repayment of EPF for a time of one year, exclusion from instalment of Electricity Tax till 2025 and 100 percent stamp obligation exception.

Proximity to Bengaluru As most of the corporate offices are located in Bengaluru, the first preference of companies is to put up a plant within a comfortable driving distance from head office. As most of the senior employees and mid-level management sit at the head office, most of the companies want employees to be able to move between the office and the plant in an hour or so maximum. For instance, Ather Energy corporate office is located in Koramangala, which is 60 minutes away from the Ather Energy plant in Hosur. Moreover, the connection via Electronics city flyover helps cut through the traffic, which was initially the pain point of employees moving between Koramangala and Whitefield, where Ather Energy plant was located.

Availability of Land and Scalability Scope Given the area related bottleneck in Bengaluru, it is essential for EV companies or any other manufacturing units to look into areas nearby that can accommodate projected production capacity and growth plans. Given, land investments are not made again and again, it is always advisable for the companies to take up the area based on the most optimistic business projections. With the same thought, Ather Energy Hosur plant is spread across 300,000 Sq. Ft. with capacity to produce 1,10,000 scooters annually. Ather Energy envisions that the plant will serve as Ather Energy’s national manufacturing hub, catering to demand from across the country. Moreover, the plant is nearly 10 times the capacity of the Whitefield, Bengaluru, plant.

Hosur Historic Precedence Within the close proximity to Bengaluru, Hosur area has historically been a dominant space for two wheeler, automotive, and electronics business segments. Given that EV is primarily an amalgamation of these three segments, it is therefore a natural choice for EV companies to develop manufacturing units in the Hosur area. Moreover, with established and consistent access to power, land, and labour relevant to the industry, Hosur is the first choice of investment. Furthermore, a lot of fossil-fuelled automotive industries are also expanding into the EV segment. This has prompted an easy transition for existing automotive companies in the area. Also, as Tamil Nadu has over 800 engineering colleges, the state offers an intellectual and skilled labour pool ensuring steady stream for the workforce.

Amicable Labour and Supportive Workforce In the area, it is widely noted that the kind of labour unrest Bengaluru witnesses is not seen in the Tamil Nadu north western districts, which are barely an hour away from each other. The most plausible reason for this could be the existential automotive businesses in the Hosur area, unlike Bengaluru, where labourers are experiencing the automotive industry for the first time. In Hosur, both industry and labour have matured, and the companies have learnt that exploitative practices are rather counter-productive. Therefore, most of the EV companies find this a huge draw in making investment decisions in the Hosur area.

Hosur Meteoric rise and the way ahead Given the reasons above along with a network of highways facilitating logistics of movement and the welcoming policies set by the Tamil Nadu Government for automotive companies, Hosur belt is emerging as an industrial bowl for the electric vehicle manufacturers. Tata, Delta, Ola Mobility, Ather Energy, and Simple Energy are some of the big names in the electronics and electric vehicle (EV) sectors that have made Hosur and the surrounding districts their home in the past few years.

Along with growing awareness and spiralling petrol prices, the demand for EV is set to increase significantly in the coming years. As per the data, In January 2022, overall high-speed EV two-wheeler registrations rose to 27,563 units as compared to 24,725 units in December 2021. To match the rising demand, manufacturers have to up their capacity, for example Ather Energy recently commissioned its second facility in Hosur to increase its capacity from 1,20,000 units to 4,00,000 units. Ola Electric has set out to build the world’s largest EV facility with an initial annual capacity of two million units. Furthermore, TVS has also decided to invest over 1,100 crores in the area for the new EV plant. If the cards are played right, this belt could further emerge as a global player given the fast adoption of EVs, especially in the two-wheeler segment.

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Address Advisors | FINANCIAL STRUCTURING

We are a pro-active partner in raising capital for real estate projects across Commercial, Residential, Hospitality and Retail Projects. Our team facilitates real estate developers to raise both domestic and international funding via HNI Investors, Private Equity Funds, Banks and Non- Banking Financial Corporations (NBFCs). Address Advisors.

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With a consulting and advisory approach to real estate brokerage services, Address Advisors is the one-stop shop for all real estate brokerage solutions. With more than 100+ years of consolidated experience, Address Advisors has grown from a boutique real estate firm to a leading property consulting organisation. True to the spirit of our name, we play both advisory and consultancy roles for our clients to find them the best addresses across all asset classes whether, owned, rented or shared! | Address Advisors.

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A leadership team that boasts of the crème-de-la-crème of the industry, we take pride in knowing the pulse of the industry and beyond! With a strong understanding of the changing market conditions and a proven track record of delivering the best spaces to our clients, we help you add merit to your business and assets! | Address Advisors

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An “Address” today has come a long way from being a mere necessity to an identity that speaks of stature; to a resource that enhances efficiency; to an environment that optimizes ergonomics. At Address Advisors, we deliver spaces that surpass the client’s requirements by leveraging our superior market intelligence, data-driven research, proven processes and personalised approach to help you throughout the built life cycle. Address Advisors

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Indian Property Consultant | Address Advisors

With a consulting and advisory approach to real estate brokerage services, Address Advisors is the one-stop shop for all real estate brokerage solutions. With more than 100+ years of consolidated experience, Address Advisors has grown from a boutique real estate firm to a leading property consulting organisation. True to the spirit of our name, we play both advisory and consultancy roles for our clients to find them the best addresses across all asset classes whether, owned, rented or shared! | Address Advisors.

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