Bengaluru leaves behind London and many other European cities to become the leading tech hub

Bengaluru, IT Sector, tech

Bengaluru, the tech capital of India, has been ranked as the fastest-growing technological hub in the world, followed by British capital, London. Many other European cities like Munich, Berlin and Paris followed Bengaluru and London, and Mumbai – the financial capital of India, has been ranked the 6th. As per the data analysed by London & Partners – the Mayor of London’s international trade and investment agency, investment in Bengaluru grew from 1.3 billion dollars in 2016 to 7.2 billion dollars in 2020.

Investment in London grew 3 times, from 3.5 billion dollars to 10.5 billion dollars between 2016 to 2020. “It’s fantastic to see that Bengaluru and London ranked as the top two fastest-growing global tech hubs for VC investment. Our two great cities share mutual strengths in entrepreneurship and innovation – creating lots of opportunities for tech investors and companies to do business across both regions,” said Hemin Bharucha, Chief Representative of India at London & Partners.

“London has a strong trade and investment relationship with cities across India and today’s figures show the opportunities for future partnerships between the UK and India on technology. Despite the pandemic, tech companies in London and India are continuing to lead the way in creating game-changing technologies – especially in high growth sectors such as EdTech and Fintech,” he said.

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“The UK government’s recent Brexit deal with the European Union brings certainty for Indian companies and investors looking to London and we look forward to welcoming more Indian businesses to the UK capital in the years ahead,” he added.

Indian tech giants are on a shopping spree in the continent of Europe. Unfazed by the volatility in the market due to the Coronavirus pandemic, the homegrown success stories of India’s Industrial revolution are turning a corner and assimilating the European firms to leave a bigger and wider footprint in the Northern Hemisphere.

According to media reports, Bengaluru based software behemoth Wipro will be acquiring the IT units of German firm Metro AG in a multi-year technology transformation deal with a revenue potential of $1 billion.

It is being anticipated that Wipro will be acquiring IT assets of Metro AG across Germany, Romania, and India, all whilst assimilating the 1,300 employees of the European tech company. The multi-year deal is expected to generate $700 Million in the first five years, and may likely extend by a further four years, the statement said.

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This is Bengaluru based software behemoth’s second acquisition as early in July this year, Wipro had also acquired Belgium-based 4C, one of the largest Salesforce partners in Europe, Middle East, and Africa (EMEA).

Wipro already has a well-established Salesforce business in the Americas, Japan and Australia, which was reinforced with the Appirio acquisition in 2016. As part of the €68m deal, 4C will be consolidated as part of Wipro’s Salesforce practice, which provides solutions globally around multiple Salesforce clouds and its ecosystem of products.

The IT sector is the crown jewel of the Indian economy; the 200 billion dollar industry is the highest contributing sector in the GDP of the country. Since the turn of the century, numerous IT companies have carved a separate identity for themselves in cities like Bengaluru, Hyderabad, Pune, and Chennai. After developing and prospering in the domestic market, 2020 has given the fillip to these companies to take a much more aggressive expansion approach in Europe and beyond, and so far, it looks like the gamble is paying off.

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