Which startup should I join in Bangalore?

5 initiatives that changed Bangalore's IT landscape forever

Over the past few decades, India has become the perfect tech landscape for entrepreneurship, attracting international companies from all over the place. Bangalore, as the hub for India's IT industry, played a special role in this development.

Located in the heart of South India and as that "Silicon Valley of Asia" Bangalore is home to over 12.5 million people. With an average Economic growth of 6.5% the city is developing at a rapid pace. This rapid growth is largely due to one factor - the IT industry.

Bangalore is home to the R&D centers of some of the best-known multinational corporations. These companies, in turn, create millions of jobs for engineers and developers from across India. So what's the secret? What turned Bangalore into such an IT ecosystem? How did Bangalore become the country's IT hub?

Let's find out.

1. First class educational institutions

It started long before technology developed as we know it today. Swami Vivekananda (an Indian Hindu monk and a key figure in Indian philosophy) and Jamsedji N. Tata (an Indian industrialist who founded the Tata Group) strove to improve India's scientific skills. This endeavor was continued in 1909 with the founding and development of the Indian Institute of Science affirmed which became the cornerstone for the following decades of technical progress.

The institution has made significant advances in computing, space and nuclear technology - and was the first to offer a master’s degree in engineering. In addition to its 40 doctoral programs, the Faculties of Climate Research, Neuroscience and Engineering offer students of IT subjects interdisciplinary research. Incidentally, Bangalore has the largest number of engineering schools in the worldwhich is evidence of Bangalore’s technical "prosperity".


Engineering educational institutions have grown 8-fold over the past decade, and the number continues to grow 20% each year.

Many U.S. educational institutions are known for helping their alumni create successful businesses. In addition to Stanford, Harvard and the University of California, the Indian Institute of Technology is now also on the list. Alumni of the IITs, an alliance of 23 Indian universities, already founded 12 unicorns (Companies with a market valuation of more than 1 billion US dollars upon exit or IPO). This fact makes India a leader in digital developments and has fueled the country's rise and corporate fame.

But that's not all. According to Genome’s ranking from 2018, Bangalore is among the Top 14 leading countries for advanced manufacturing and robotics, and overtakes metropolises like Mumbai and New Delhi.

2. Government funding and politics

To dramatically increase the number of IT companies and institutions and instill an entrepreneurial spirit, the Indian government launched the Startup India program in 2016. This program was created to provide financial help to startups to protect their trademarks and intellectual property, and to hire the best developers and engineers. In addition to this nationwide initiative, the government of Karnataka (state in which Bangalore is located) started an additional funding program, that by 2020 should stimulate the growth of 20,000 tech startups.

In addition, the Prime Minister of India, Narendra Modi, started the “Make in India” movement in 2014. As a result, companies were called upon not to make themselves too dependent on foreign suppliers and instead to increase production capacity in their own country.

Regulations in IT were very strict ten years ago, but now we can see that many of these stately regulations support startups.

Esha Tiwary

General Manager, Entrepreneur First

The government was quick to recognize the importance of eliminating illegal practices in the business world. In 2016, for example, the concept of currency devaluation was introduced, in which all ₹ 500 and ₹ 1,000 banknotes were superfluous and new ₹ 500 and ₹ 2,000 notes were issued. This was done to curb the shadow economy and reduce the use of counterfeit money.

Unsurprisingly, that led to one too sudden emergence of new online payment portals and fintech companies, especially in Bangalore. Various fintech startups quickly tried to get something off the cake. Companies like Paytm, MobiKwik, Lendingkart Technologies and Policybazaar take advantage of Bangalore's IT ecosystem and have been able to scale their business models incredibly quickly.

3. Economic liberalization

Economic openness is undoubtedly the single most important factor behind the explosive growth rates and innovative dynamism of Bangalore.

As an early British colony, India was mainly known for agriculture and production, thanks to its low wages and cheap land. It was only after the country gained independence in 1947 that Bangalore was able to slowly take the form it has today. Aerospace, telecommunications, defense industry - everything was funded with abundant government investments.

That created a kind of snowball effect. Manufacturing giants such as Bharat Heavy Electronics, Indian Telephone Industries, The Hindustan Aeronautics, and The National Aerospace Laboratories all opened their headquarters in Bangalore. And their success has in turn meant that more and more companies have set up their development centers in the city.


The IT industry employs around 10 million people across India and is responsible for approximately US $ 85 billion in export revenues - 40% of which is generated in Bangalore.

With Infosys and Wipro, who settled there in 1983, the city had already risen to become the country's high-tech sector. In addition, India's Ministry of Communications and Information Technology's STPI program in 1991 removed the few remaining obstacles that stood in the way of accelerating the export of software.

For the next 26 years, India became the fastest growing economy, overtaking the UK in 2016. These small but important economic successes show that India has become an important player in the international market.

4. Startup India

Startup India was the targeted attempt to awaken an entrepreneurial spirit in Bangalore’s IT industry and to actively promote innovation. The initiative was associated with a sense of activism and was mainly aimed at empowering startups to grow.

Flipkart, Snapdeal, Ola, InMobi, Hike, MuSigma, Paytm, Zomato and Quikr all belong to the unicorns club. India continues to work on building and expanding startups. Since it was launched in 2016, To date, Startup India has stood by more than 400 startups through advice and support.

Initiatives like Startup India are the hidden forces behind India’s transition from the world's IT back office to a nation at the forefront of innovation. One result of this is that talented Indian developers and engineers are returning home from abroad to participate significantly in the technology boom and to reverse the much-lamented departure.

If you want to develop a great product quickly, then you should be in a place where no skills shortage is holding you back. Just like Google’s, Facebook’s or Apple’s headquarters stay where the best infrastructure exists (Silicon Valley) - I expect the same for companies from Bangalore.

Ben Legg

Managing Director, Ola UK

In fact, Ola was not only able to penetrate new international markets, e.g. the UK and Australia, after relocating its headquarters to Bangalore, but received investments totaling 3.8 billion US dollars from Indian and foreign investors in 21 rounds.

5. Digital transformation

One of the main reasons for the technological rise in India was and is the rapid digital transformation. India made the direct leap from the phase with no phones to the phase of smartphones with 4G. A robust infrastructure and the endeavor to further expand this ecosystem India at the forefront of digital transformation.


If you can't find the right developers locally, consider the option of building a remote team in a city like Bangalore - the hotspot for tech talent. You can quickly grow your development team and collaborate with the experts in the industry.

In addition to the ideas, the talented people and a lot of investment, Bangalore is also rich in accelerators and incubatorsto support entrepreneurs. Initiatives like the Microsoft Accelerator, 10,000 Startups by Nasscom, and partnerships with companies like Yes bank, Tata Group and Mahindra ensure that Bangalore will continue to be a prime environment for tech companies.

With interdependence, these corporate and Indian government initiatives have transformed Bangalore from retirees' paradise to innovative hotspot. The city offers entrepreneurs advice, opportunities for networking, top educational institutions, investments and much more. Every startup can make use of the infrastructure.

So if you want to take advantage of a location in Bangalore for you and want to hire the best Indian developers, then just write to us using the contact form. As experts in building teams for other companies, we can help you find the best one for you.

If you still need more information on building a team in Bangalore, you can download our free ebook. It's kind of a manual and gives you all the information you need to know about offshoring. It is easy to understand and we hope it is full of valuable information.

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