Bengaluru: The Rise of Silicon Valley in India
Banglore: Bengaluru silicon valley india

Bengaluru: The Rise of Silicon Valley in India

Bangalore or Bengaluru is often referred to as the Garden City due to its Tree-Lined streets and satisfactory weather. Bangalore, which was once as soon as acknowledged for its inexperienced and fertile farmland and pastures, is additionally now domestic to Information Technology Hubs and one of the most well-known Educational and Research Institutes.

Banglore: Bengaluru silicon valley india

Education Hubs in Bengaluru

Bangalore is now not solely domestic to Information Technology Hubs, however, is additionally famous for Research Institutions like the Indian Institute of Science (IISC), Indian Institute of Management (IIMA),  National Institute of Fashion Technology, National Law School of Indian University (NLSIU), National Institute of Design, Bangalore (NID R&D Campus),  and National Institute of Mental Health and Neurosciences (NIMHANS).

A range of Industries is positioned in Bangalore. Headquarters of many National and International companies are right here, and half of India’s Information Technology Business worth around Dollar 50 Billion is from Bangalore.

You don’t have to make it a whole lot past 8 am earlier than Bangalore’s infamous site traffic jams end up too dense to escape. For Bangalore’s 12.3 million inhabitants, outrunning heavy traffic congestions have to be a sophisticated navigation artwork. 

But, in between petrol fumes and the frenzy of activity, remarkable tech parks, lavish hotels, and fancy eating places testify to a sincere world and progressive metropolis’s genesis. So what led to this transformation? How did Bangalore end up in Asia’s Silicon Valley?

A Throwback to the Memory Lane of Being Asia’s Silicon Valley

Let’s take a stroll down reminiscence lane…

The 1970s: Indian born R. K Baliga (Father of Electronics City in Bangalore) was in the US before returning to India with India’s imaginative and prescient prescience to the world’s subsequent Silicon Valley. He proposed the thinking of the ‘Electronic City,’ which would later seriously change Bangalore into an IT mecca.

1976: A authorities enterprise used to be created to increase the electronics industry in Karnataka’s kingdom.

1978: Baliga met to decide a plan that would deliver the Electronic City to life. Built on a 330-acre plot of land in Anekal Taluk, it created a house for small, medium, and massive IT businesses to work collectively and assist the enterprise as a total to develop on its own.

1983: Both Wipro and Infosys had been home-grown groups that led Bangalore, encouraging and inspiring neighborhood IT companies to agree within what they had been doing.

1985: Texas Instruments have been the first multinational to arrive in Bangalore. They spent time tapping into the nearby intelligence and lookup pool. With huge groups putting up in the area, this acted as an open invitation to the world’s largest agencies to come and be a part of Bangalore.

1991: Liberalisation of the Indian financial system happened due to the leisure of FDI norms. In turn, a hundred and fifty operational devices arrived in rapid succession, consisting of IBM & Tata. The software program improvement enterprise boomed, remodeling the Electronic City into a world mecca for software program companies.

The 1990s: Bangalore grew to become the region to commence companies due to its sources and infrastructure. Expats who had labored for massive organizations like Amazon and Mckinsey again to India were upset and set up profitable groups such as Flipkart and Inmobi. Companies like these did wonders for the industry, encouraging ambition in younger entrepreneurs and giving them the power to begin their corporations in booming Bangalore.

The Nineties onwards: Satya Nadella grew to become the CEO of Microsoft in 2014 – an agency that has achieved 15 years in India – putting forward India’s domestic grown brain in the industry. Infrastructure has persisted to improve, making sure Bangalore is properly linked to the infrastructure and brain pool of different predominant southern cities. 

The Indian authorities have made big investments of time and cash into enhancing Bangalore’s economy. The Bangalore clever metropolis now serves as the headquarters for National Aerospace Labs, Indian Space Research Organisation, Bharat Electronics, and Indian smartphone industries, cementing Bangalore’s popularity as an international participant in the world of IT.

Bangalore’s Rise as an IT hub: 1984: The Making of an IT Capital

In the 1980s, Bangalore started developing in the Information Technology sector. There are so many engineering universities opened up in Bangalore. Texas Instruments used to be the first overseas enterprise to begin operations in Bangalore, which is well-known for its Casio Calculators.

There are nearly 250 headquarters of software program agencies right here in Bangalore. India’s largest tech giants like INFOSYS, WIPRO, and HAL are additionally placed in Bangalore. This town attracts heaps of software program engineers and IT experts from all over India. 

There are a number of brilliant blessings of overseas businesses for running through Bangalore as in contrast to different countries. These agencies employ quite skilled Information Technology personnel, and they have to pay a quarter of the price solely as wages that they would have to pay in the United States or Europe.

Other industries in Bangalore:

So many different industries like aerospace and plane manufacturing, Biotechnology and Machine making and electronics enterprise have flourished in Bangalore. Bangalore has come up to be the most famous outsourcer in the world as properly, and agencies from around the world pick out this vacation spot for Information Technology outsourcing tasks.

However, it is no longer solely well-known for outsourcing as a lot of Research and Technology Development is being carried out here. Most of the agencies begin their enterprise with a small quantity of capital, and then they develop progressively securing finance from the West as well.

The IT professionals who labored overseas for years, gaining trips and new information, are heading to their domestic and beginning their own organizations in Bangalore, bringing innovation and ideas.


 The only difficulty right here is that these organizations demand certified and expert technicians, and as their demand rises, their pay is additionally getting greater and higher. This is why many American primarily based corporations are leaving India and transferring their agencies again to the United States of America due to the fact India is turning into extra and extra steeply-priced day by day.

With the new computer and software program insurance policies in 1984, imports and exports of hardware and software programs in India have been liberalized. This set the basis for firms like Wipro and Infosys to set up camp in Bangalore and employ Indian programmers.

Ties have been constructed with American groups imparting superior structures that Indian software program businesses massively benefited from. In return, the Americans started out capitalizing on the giant brain pool and low operational expenses by way of erecting software program services and innovation centers on Indian soil, thereby sowing the seeds of an offshore relationship between East and West. 

However, in 1985, Texas Instruments Inc. grew to become the first MNC to set up an improvement center in Bangalore, paving extra MNCs to follow.

2010-2020: From the lower back workplace to an R&D hotspot

In the final decade alone, Bangalore has accounted for 35% of the global in-house centers (GIC) in India. The value of R&D performed in India is estimated to be around $40 billion and is anticipated to expand in the years to come.

How IT decision-makers will construct them The contributing element right here is the heavy awareness of high-tech intelligence who can construct a customized software program for your enterprise at a less cost. It has a special attraction to Western businesses whose accelerated market stress the want for knowledgeable builders besides the eye-watering charges of labor.

Meanwhile, India used to be going through some profound modifications that have been remodeling its entrepreneurial set-up. Graduates dreaming of a job at Google have been rapidly changed using graduates who aspired to set up the subsequent unicorn. 

Out of the 12 million humans who name the metropolis their home, almost one million are developers. The quantity of IT faculties has surpassed 100, and the startup mania is ubiquitous.

Today, these are the humans at the back of India’s most profitable startups’ guidance wheels. Ola, for instance, managed to overtake its world competitor Uber in India. At the same time, Amazon-competitor, Flipkart, reached an internet market price of $15.5 billion and managed to create a staff of greater than 30,000 people, all in much less than 10 years. Both agencies originated in Bangalore.

“Bangalore has served as India’s science capital for over three many years now. With a strong heritage of premier R&D laboratories, tutorial institutions, and public zone targeted firms, the metropolis has substantially contributed to India’s IT management in the world.”

-Prashanth Prakash,

 Chairman of Startup Vision Group – Karnataka.

2020: The Silicon Valley of Asia

The IT enterprise employs roughly 4.1 million human beings throughout India and bills for almost $137 billion of exports each year- 40% of which is generated in Bangalore. But the economic system can’t give an explanation for the upward thrust of this IT utopia.

The build-up of technical knowledge and the multi-skilled labor force has been instrumental in the heavy awareness of R&D centers in Bangalore, counting names like Amazon, IBM, Microsoft, Tesco, Nokia, and Siemens.

This technical centrifuge has halted Bangalore’s function as a passive recipient of menial software program duties and, as a substitute, made it an epicenter of entrepreneurship. It hosts a younger populace of digital natives who possess the enterprise acumen and revolutionary vigor that constitutes the world’s tech industry’s insulin. And, in this whirlwind of entrepreneurial upheaval, AI, computer learning, and IoT are saturating the market and bulking up the ecosystem.

Startups That Capitalised On Bangalore’s IT Ecosystem To Become Unicorns

From the time immemorial, Bengaluru has been popularly known as the country’s startup capital, both in terms of new companies being incubated and the number of funds raised by the companies.

A report states, “Bengaluru’s unicorns have led to the creation of more than 2,100 entrepreneurs across India, out of which 1,100 started a venture in Bengaluru. This is the largest snowballing effect seen across all startup ecosystems in the country.”

So let’s take a glimpse at those Banglore-based Unicorns.


Because they noticed outstanding manageable in Bangalore’s IT ecosystem, in 2008, they constructed their first workplace in the city. They additionally launched an online 24×7 consumer carrier and shipped over 3,400 books that year. 

The subsequent year, they employed their first full-time worker who would go on to grow to be a millionaire. In September 2009, Accel Partners invested $1 million in Flipkart so that they may want to open workplaces in Delhi and Mumbai.


The only EdTech decacorn startup in India, Byjus’s, is a perfect example. By 2009, Byju was once instructing in 9 special cities each week. Hopping between cities quickly grew to become overwhelming, and Byju commenced the use of movies to teach his students.

In 2011, he started out his organization “Byju’s” with the assist of a few college students who had graduated from IIMs in the country. Simultaneously, he additionally commenced growing core gaining knowledge of merchandise for college students from 4th grade to the twelfth grade — a procedure that took nearly four years. 

Byju’s dive into the online educating world used to be well-timed, given the speedy smartphone penetration that enabled effortless entry for the mobile-first USA like India.


Within the subsequent decade, Ola grew at rocket-speed. The enterprise moved its headquarters from Mumbai to Bangalore to gain Bangalore’s IT ecosystem and get a headstart on software. Today, Ola enjoys an 80% share in the Indian ride-sharing market and employs 2.5 million drivers.


In August 2014, Swiggy started out operations via signing up a few eating places in Bangalore, the nation’s IT hub. Shortly after, Swiggy raised its first spherical of funding and launched its software in May 2015.

Today, Swiggy is the main meal ordering and shipping platform in India. In 2019 alone, Swiggy delivered five hundred million orders throughout 500-plus cities pan-India. From a handful of eating places in 2104, Swiggy now collaborates with over 1,60,000 eating places in the country!


Because a massive majority of Indian customers did no longer agree with online purchasing at that time, he started out merchandising the portal thru Google Ads. By 2011, round 9 million traffic posted their commercials on Quikr.

Like different thriving startups, even though Quikr used to be launched in Mumbai, they determined to cross its headquarters to Bangalore to capitalize on the large intelligence pool and Bangalore’s IT ecosystem.

Within a couple of months, the wide variety of Quikr customers grew to eleven million. Today, Quikr receives over 30 million customers each month and exists in more than 900 cities in the country.


 Udaan has formed a network of more than 150,000 buyers and sellers across the nation. In November 2016, Udaan raised $10 million in Series A round from Lightspeed Venture Partners.

With a Series C funding of $225 million from DST Global and Lightspeed Venture Partners in September 2018, Udaan joined the coveted unicorn club with a valuation of $1 billion.

Udaan has emerged as one of the most valuable B@B unicorns in a short span, enabling small businesses in India by leveraging technology to connect traders, wholesalers, retailers, and manufacturers on a single platform.


BigBasket is India’s first unicorn in the field of online grocery delivery space.  In late, 2011 that BigBasket raised its first funding round worth ₹5 crores. With a $150 million funding from Mirae Asset Global Investments, CDC Group, and Alibaba in May 2019, BigBasket got the title of a unicorn. During FY19, BigBasket’s revenue increased by 69% to touch ₹2,380 crores while its losses touched ₹348 crores.


InMobi initially started as an SMS-based search and monetization business named as mKhoj. It later pivoted to the mobile advertising platform and rebranded itself as InMobi. InMobi has acquired nine companies, including its latest acquisition of the vernacular social media platform Roposo in November 2019.

Also Read: 30+ Unicorn Startups in India you Need to Know

Apart from these unicorns,  some of the soonicorns(startups having the potential to be unicorns) in Bengaluru include Razorpay, Meesho, Ninjacart, Dunzo, Zoomcar, Rapido, Licious, and Practo. These fresh companies have the most powerful potential to find a place in India’s unicorn club in the upcoming years.

Bangalore Has Been a Boon to The Startup Scene in India

Indian startups have raised 50 billion dollars in simply the last six years, with more than 40,000 startups launched. With 31 unicorns at a cumulative valuation of $61 billion, Bangalore has been the largest driver of India’s startup boom story.

Only 49% of Bangalore’s populace is native to the city, and the resulting multiculturalism has had a charming effect on its social interior. Whole neighborhoods are flooded with luxurious boutique-style stores and extravagant dwelling arrangements.

 In fact, the metropolis used to be featured as the world’s second-fastest-growing IT ecosystem in 2015, and the World Economic Forum named Bangalore as the world’s most dynamic town in 2017 and 2019.

Also read – A Brief Analysis of NEP 2020 And How It Will Impact The Scope of Entrepreneurship In India

Final Thoughts

These integral elements have cemented Bangalore as an IT hub and earned the town the hard-earned sobriquet of Asia’s Silicon Valley. Planning insurance policies and the large inflow of investments have overhauled a metropolis that used to be greater famous amongst retirees and, as an alternative, created an area for extraordinary stages of technological creativity and disruptive innovations.

And after the myriad of examples lies the most uplifting cognizance that as hostile to many different markets, Bangalore’s most fruitful years lie in advance as an alternative than behind. The metropolis holds abundances of untapped vitality of burgeoning income and boom for a long time to come.

Also Read – Scope and Present Scenario of Entrepreneurship In India

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