Bengaluru ranked second-best AI-native cluster in Asia, top 15th startup ecosystem globally

Published 17 June 2026 · local

Bengaluru-Karnataka has ranked 15 among the top 40 global startup ecosystems as per the latest Global Startup Ecosystem Report (GSER) 2026 launched at VivaTech, Paris

Bengaluru-Karnataka has ranked 15 among the top 40 global startup ecosystems as per the latest Global Startup Ecosystem Report (GSER) 2026 launched at VivaTech, Paris on June 17. The city, which has been ranked as the top 6 startup ecosystem in Asia, has also emerged the second-best AI-native cluster in the continent after Beijing. High in R&D and AI Silicon Valley, New York City, and London retained the top three positions with no change in rankings from last year. Bengaluru, which emerged in the 14th position in 2025, slipped to the 15th place, although no country has been ranked the 14th position this year in the report. Instead, Toronto-Waterloo and Paris tied for the 13th position. The report analysed six success factors including performance (in terms of exits, ecosystem value and startup success), funding, market reach, talent and experience, AI-native cluster and R&D Engine of each ecosystem to create the rankings. Each factor was awarded a score between 1 and 10, 10 being the highest and 1 the lowest. Bengaluru scored 9 in performance and R&D, 8 in AI-native cluster, and 7 in funding and market-reach. GSER overview for Bengaluru-Karnataka Bengaluru-Karnataka is India’s highest-ranked startup ecosystem, emerging as: #15 in Global Startup Ecosystem #6 in Asia Startup Ecosystem #2 in Asia Ecosystem in AI native cluster Other highlights Bengaluru attracts 58% of India’s AI startup funding, with ~$1.5B raised since 2020, of which $1.2B-plus has flowed into application-layer AI startups Supported by the Karnataka Aerospace & Defence Policy 2022–27 and Karnataka Space Technology Policy 2025–2030, the state hosts 81 space-tech and defence-tech companies that have raised ~$353M.

Low in talent Surprisingly, the city, whose talent pool has been its bragging point, scored only 4 under ‘talent and experience.’ In terms of quality and access of tech and life sciences talent, Bengaluru scored only 1, although it scored a 10 in terms of cost efficiency average of software engineer salaries and number of STEM students and graduates. Bengaluru-Karnataka score (out of 10) Performance 9 R&D engine 9 AI-native cluster 8 Funding 7 Market reach 7 Talent and experience 4 Global averages surpassed, salaries remain low The city surpassed global averages on several counts such as ecosystem value, total VC funding, total early-stage funding, exit amount and exit count. With 30 active unicorns, Bengaluru is way ahead of the global average number of unicorns at 11. The ecosystem is valued at $153 billion. The total VC funding that flowed in between 2021 and 2025 amounted to $39 billion, way higher that the global average funding of $5 billion for the corresponding period. The top funded startups include Zepto, Meesho and Udaan. The exit amount between 2021 and 2025 has also been far higher at $46 billion than the global average of $7.6 billion.