Bengaluru is lately being recognized as the startup capital of India. The city is known for its tech-savvy crowd and vibrant ecosystem. It is housing numerous successful ventures. However, a recent perspective is different. It is being suggested that founders could benefit from a shift to Mumbai to understand what it means to build serious and sustainable businesses. Sanjay Nayar of Sorin Investments highlighted an urge to startup leaders to consider moving to Mumbai for a dose of business reality.

Bengaluru has earned the reputation of being Silicon Valley of India. It houses a plethora of startups and many of them have become unicorns too. Its environment is startup-friendly and strengthens innovation with a strong focus on technology. However, such an environment can sometimes lead a rapid growth at the expense of long-term sustainability.

Mumbai is the financial hub of India. It drives business decisions with financial discipline as well as a deep understanding of market realities. The mindset is often more grounded. The emphasis here is basically on building businesses that can weather economic downturns and simultaneously continue to thrive over the long term.

One important lesson Bengaluru founders could learn from Mumbai is the importance of financial discipline. In is an environment where funding can be abundant. Mumbai’s business culture is equipped with emphasis on profitability and cash flow management. Hence, it could provide valuable insights for such startups which are looking to build businesses that can last.

Another area to take a note is that the influence of Mumbai could be beneficial in understanding and embracing market realities. Innovation is important but it is also important to ensure that a product or service meets a real market need and can generate sustainable revenue as well. Mumbai’s business community has a deep understanding of market dynamics.