Bengaluru vs Hyderabad: Which is better city for startups?

Bengaluru: Telangana's IT Minister, K.T. Rama Rao's tweet recently sparked a debate on which is the best city, Bengaluru or Hyderabad, in terms of infrastructure, growth and support for startups. It all started when Ravish Naresh, an entrepreneur, tweeted "Startups in HSR/Koramangala (India's Silicon Valley) are generating billions of $ of taxes. Yet we have v bad roads, almost daily power cuts, poor quality water supply, unusable foot paths. Many rural areas now have better basic infra than India's Silicon Valley."

Soon after this, KTR replied to his tweet by inviting him to Hyderabad. "Pack your bags & move to Hyderabad! We have better physical infrastructure & equally good social infrastructure. Our airport is 1 of the best & getting in & out of city is a breeze. More importantly our Govt's focus is on 3 i Mantra; innovation, infrastructure & inclusive growth," he tweeted.

Karnataka Congress leader, D.K. Shivakumar responded to this by tweeting, "My friend, I accept your challenge. By the end of 2023, with the Congress back in power in Karnataka, we will restore the glory of Bengaluru as India's best city."

KTR replied again by stating that the competition between the two cities is healthy. "Dear @DKShivakumar Anna, I don't know much about politics of Karnataka & who will win but challenge accepted… Let Hyderabad & Bengaluru compete healthily on creating jobs for our youngsters & prosperity for our great nation,"he added.

While the debate went on, BJP leader and Karnataka's IT and BT Minister, C.N. Ashwath Narayan tweeted, "Karnataka is not in the rat race with other states. Our focus is to collaborate and compete at a global level. Unfortunately, some states are piggybacking on our journey in the name of 'healthy competition'. We are on a marathon mission of building an #AatmaNirbharBharat," aiming at KTR.

Amidst the growing discussion on which city provides a better support for startups and which owns an improved infrastructure, some entrepreneurs consider that Bengaluru is welcoming and supportive while the others, doubt the condition of the city's infrastructure.

Pros of choosing Bengaluru

Manas Ranjan Hota, Co-founder and COO of DrinkPrime considers that one of the major reasons for Bengaluru being a start-up capital is due to its thriving tech ecosystem. "Bengaluru's robustly growing startup ecosystem consists of 13,000+ active startups. The city has the world's fastest growing mature tech ecosystem - one of the main reasons for the incubation of a wide range of startup ideas.

The venture capital investments have also increased since 2016. This just means that the city welcomes anyone who has a viable business idea," he says.

Siddesh B.H, Founder and CEO of Banghera Projects trusts that Bengaluru is a perfect place for networking, "Connecting with the investors and considering the right talent is easier in the city as it consists of many individuals with surplus talent which is required for the job."

What needs to be improved

On the other hand, Siddesh B.H also believes that the government could be more supportive ofefficient startups.

"Startups get some grants from the government, but it would be great if we could get some additional funds too for the benefit and the growth of the startups. There are several policies for IT, ESDM and so on however, policies to encourage the ecosystem along with the startupswould be ideal. Betterment of the infrastructure could also be an added advantage," he says. An entrepreneur from Hyderabad, RaghunandanVadla, Founder and developer of Action Nation, and an author of 'The Great Indian Treasure', comments on the infrastructure as well as the ecosystem of Hyderabad.

Pros of choosing Hyderabad

"When it comes to the physical infrastructure, Hyderabad is an amazing place. It is also closer to the airport and startups are obtaining enough support from the government," he says.

What needs to be improved

"People should be more encouraging as the ecosystem can only flourish through their support. The startup ecosystem is in the hands of a limited number of people and we're unable to see any new faces. We just need the right kind of people to guide young entrepreneurs where a connection will be established. Once this changes, it will definitely be helpful for budding entrepreneurs," he adds.

Challenges that entrepreneurs usually face while establishing a startup

Apart from what the cities have to offer, entrepreneurs have to face various obstacles and making the right decision at the right time becomes extremely crucial. "Making up your mind to start a business is a challenge in itself.

Any person who decides to move out of their comfort zone and start their own business will have doubts, especially about what will happen if they don't succeed.

Looking at the bigger picture is extremely important. Another challenge is, if you are starting a business that has a physical product, you will most likely have to make upfront investments. This can be really hard in the initial stages because nobody is aware of your brand and product and you may not have investor interest.

While this can be really challenging, you should be ready to invest the money you have in hand and find the best alternative sources. It could be family or friends - the best if they are people who have faith in you," adds Manas Ranjan. Getting over these challenges "Consistency is the key to get over any hurdle. It's important to keep trying as your ideas are different and valuable. Although there will be some fear, this feeling should not take over your mind," says Siddesh. "If you are a young entrepreneur, keep believing in yourself when the people around you doubt your ideas and vision. You came up with the business idea to solve a problem for the people. Focus on the big picture and keep moving forward. It might seem like a slow journey but always remember that you are in it for the long run," concludes Manas Ranjan.

Bengaluru has the world's fastest growing mature tech ecosystem - one of the main reasons for the incubation of a wide range of startup ideas

-Manas Ranjan Hota, Co-founder and COO of DrinkPrime, Bengaluru

Startups get some grants from the Karnataka government, but it would be great if we could get some additional funds too for the benefit and the growth of the startups

-Siddesh BH, Founder and CEO of Banghera Projects, Bengaluru

People should be more encouraging as the ecosystem can only flourish through their support

-RaghunandanVadla, Founder and developer of Action Nation, Hyderabad