Innovation hub needed to boost start-ups in Mumbai: Report

With high real estate prices, low availability of tech talent and crowded public transportation inadvertently restricting the growth of start-ups in Mumbai, building a global innovation hub could turn the equations in favour of the city, says a new report from KPMG and not-for-profit organisation TiE.

The combined market valuation of all start-ups in Mumbai was estimated at $12 billion in 2019. While funding has been consistent across the last few years, the number of deals has witnessed a decline indicating an increase in the average ticket size.

Recently, the government launched various schemes to extend support such as Maharashtra State Innovative Startup Policy 2018, Fintech Policy 2018 and Maharashtra State Innovation Society.

However, despite the government support and the presence of major financial institutions, Mumbai ranks third, after Bengaluru and Delhi NCR, in terms of the total funding raised by start-ups, said the report.

"With an aim to overcome the existing challenges in Mumbai, KPMG in India in association with TiE, is recommending to build 'Mumbai Innovation Central (MIC)' - through PPP (public-private-partnership) model - which would be a co-living and co-working incubation space in the heart of the city," said Pradeep Udhas, Office Managing Partner - West, KPMG in India.

In a "Foreword", Maharashtra Chief Minister Uddhav Thackeray said the government would provide full support to the initiative and will work towards making Mumbai the No. 1 start-up destination.

To implement the idea of Mumbai Innovation Central (MIC), the government and the governing body would have to establish an advisory board, identify ecosystem partners and introduce key mentorship programmes, among other initiatives, said the report.

Mumbai's wait for its first unicorn ended on a sweet note when it witnessed the inclusion of two companies to the unicorn club in 2019. The first was the fantasy gaming platform - Dream 11 with a net valuation of $1.5 billion and the second was CitiusTech, a health tech startup valued at $1.8 billion.IANS