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topicnews · October 11, 2024

Delhi or Bengaluru? Another CEO weighs in on the best city for startups | Start-ups

Delhi or Bengaluru? Another CEO weighs in on the best city for startups | Start-ups

Shantanu Deshpande, Founder and CEO, Bombay Shaving Company.

3 minutes read Last updated: Oct 11, 2024 | 11:26 a.m IS

The debate over whether Delhi or Bengaluru offers a better startup ecosystem has been reignited by recent comments from Zomato CEO Deepinder Goyal. At a recent event, Goyal questioned the common belief that Bengaluru is crucial for entrepreneurial success, pointing out that you don’t have to be based there to build a successful business. His comments sparked further discussion and other industry leaders also shared their views.

Shantanu Deshpande, CEO of Bombay Shaving Company, has now joined the conversation and claimed that Delhi is a better place for business growth than Bengaluru. In an interview with YouTuber Ishan Sharma, Deshpande claimed that Delhi is “1,000 percent” cheaper to start a business. He explained that Delhi’s focus on substance rather than looks makes it a more suitable environment for entrepreneurs.

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Explaining his stance, Deshpande said that while Bengaluru is often equated with the Silicon Valley of the US due to its concentration of innovative startups, Delhi supports more consistent, higher quality ventures. “The average high-quality company has a better chance of getting out of Delhi than Bengaluru,” he noted, pointing out that Delhi’s startup ecosystem emphasizes steady, sustainable growth rather than following the latest trends.

Success of startups regardless of location

Meanwhile, Deepinder Goyal noted that he has not visited Bengaluru since 2017 and stressed that an entrepreneur’s success does not depend on location. “You don’t have to come here to build a startup. That is exactly what people here think, but that is not the case,” he said, adding that his own company, Zomato, has thrived by operating from Gurgaon.

Speaking about the startup culture in Bengaluru, Deshpande described it as characterized by what he described as “froth” – a focus on attention-grabbing innovations. While acknowledging the innovative work coming out of Bengaluru, he argued that Delhi’s business environment emphasizes depth and substance, which he said is a significant advantage for entrepreneurs.

When asked how he uses the term ‘foam’, Deshpande explained: ‘Foam means people who are looking for shiny new objects.’ Bangalore is very similar to Silicon Valley. The likelihood of very disruptive companies emerging from Bangalore is much higher than Delhi.”

Stronger corporate culture in Delhi

From his own experience, Deshpande highlighted the strength of the talent pool in Delhi. He pointed out that big companies like Zomato, Paytm and Snapdeal provide a strong talent base for new ventures. In contrast, he described Bengaluru and Pune as cities that are more focused on the service industry, arguing that the business culture in Delhi is stronger and more supportive of entrepreneurial growth.

Deshpande, who has been criticized in the past for encouraging young employees to work 18-hour days, noted that his company has benefited from the resources available in Delhi. “Delhi has a very strong business culture,” he said, citing this as a key factor in the city’s advantage over other startup hubs.

First published: Oct 11, 2024 | 11:26 a.m IS

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