Bengaluru Secures Top Spot as World’s Swiftest Expanding Tech Center, London Takes Second Place: Recent Study
Amongst the bustling global tech landscapes, Bengaluru has outshone all, marking itself as the fastest-growing mature tech ecosystem worldwide since 2016. London, Munich, Berlin, and Paris closely follow, with Mumbai, the financial hub of India, securing the sixth spot, as unveiled by recent research presented in London on Thursday.
Analysing data from Dealroom.co, in collaboration with London & Partners – the Mayor of London’s international trade and investment agency – showcases the staggering growth in investment within Bengaluru. From a modest $1.3 billion in 2016, Bengaluru’s investment skyrocketed to $7.2 billion in 2020, marking a remarkable 5.4-fold increase. Similarly, Mumbai saw its investment surge from $0.7 billion to $1.2 billion during the same period.
Meanwhile, London, the heart of the UK, exhibited a remarkable threefold growth, escalating from $3.5 billion in 2016 to an impressive $10.5 billion in 2020.
Hemin Bharucha, Chief Representative of India at London & Partners, expressed delight in Bengaluru and London securing the top positions as the fastest-growing global tech hubs for VC investment. He emphasized the mutual strengths in entrepreneurship and innovation shared by these two cities, fostering numerous opportunities for tech investors and companies across both regions.
London’s strong trade and investment ties with Indian cities signify promising prospects for future partnerships, particularly in technology. Despite the challenges posed by the pandemic, tech companies in London and India persist in pioneering groundbreaking technologies, particularly in high-growth sectors such as EdTech and Fintech.
Amidst Brexit uncertainties, London remains an inviting destination for Indian companies and investors, with the recent UK-EU deal offering clarity and assurance. This sentiment was echoed by Bharucha, who eagerly anticipates welcoming more Indian businesses to the vibrant tech ecosystem of the UK capital in the forthcoming years.
Venturing into global rankings, Bengaluru clinches the sixth spot for tech venture capitalist (VC) investments worldwide, with Beijing and San Francisco reigning supreme. Mumbai, on the other hand, secures the 21st position, amidst other notable cities like Boston and Singapore.
Skillmine, a Bengaluru-based tech company, expanded its operations to London last year, citing access to a vibrant tech community and a rich talent pool as key attractions. Anant Agarwal, Managing Director of Skillmine, expressed enthusiasm for the growth prospects in London, emphasizing its status as a global tech hub with abundant growth capital and a diverse customer base.
Beyond Bengaluru and London, Munich, Berlin, and Paris emerge as rapidly growing tech hubs, each doubling their investments between 2016 and 2020. However, London solidifies its position as Europe’s premier tech hub, surpassing its counterparts with over three times the investment received by any other European tech city.
London Mayor Sadiq Khan lauds the city’s resilience amidst challenges posed by Brexit and the pandemic, highlighting its pivotal role in the economic recovery. Despite adversities, London’s tech sector thrived in 2020, attracting substantial international investment and reaffirming its status as Europe’s tech capital.
The robust performance of London’s tech sector in 2020, despite global uncertainties, underscores the confidence of international investors in the city’s potential. Laura Citron, CEO of London & Partners, attributes this resilience to London’s status as the gateway to the European market and its conducive environment for tech innovation and growth.
The collaborative research by Dealroom.co and L&P also sheds light on the surge in mega funding rounds for London-based tech companies, propelling VC investment levels for UK tech to record highs in 2020. With enterprise software technologies gaining prominence amidst the shift towards remote working, London witnessed an 82% increase in enterprise software investments, reaching a total of $1.9 billion.