The New Face of Indian Advertising? Bengaluru, Powered by Startups and D2C

As the skyline of India’s tech metropolis rises, so does its clout: in a historic shift reshaping the nation’s business landscape, Bengaluru has dethroned Mumbai as India’s advertising capital in 2025. This change reflects not just the city’s dominance in technology but the relentless momentum of its startup ecosystem and a booming Direct-to-Consumer (D2C) revolution sweeping the country.

 

How Bengaluru Claimed the Crown

For decades, Mumbai reigned as the heartbeat of Indian advertising, with legacy agencies, national TV headquarters, and brand dollars flowing in from old-economy giants. In the 1990s and early 2000s, Mumbai held a 70% share of media buying while Delhi and Bengaluru lagged behind. But the script has flipped.

 

The late 2010s and 2020s witnessed Bengaluru’s startup surge, first with tech disruptors like Flipkart, Freshworks, and Swiggy, and then with a new generation of D2C brands reimagining how products, brands, and digital storytelling work. By 2025, several factors had coalesced to turn Bengaluru into the nerve center of modern marketing:

 

Vast Talent Pool: Bengaluru boasts over 6 lakh AI and machine learning professionals and a steady flow of creative, analytical, and digital-savvy advertising talent from top institutes.

 

Startups & Unicorns: With over 7,000 startups, Bengaluru is home to nearly half of India’s unicorns. Its vibrant VC ecosystem secured $3.9 billion in funding in H1 2025—40% of the nation’s total deal value, far outpacing Mumbai and Delhi.

 

D2C Boom: Bengaluru saw the largest rise in digital-first and D2C startups. Brands like Meesho, BigBasket, and new-age personal care, fashion, and F&B labels preferred local, agile agencies that could tap into digital-first storytelling, AI-powered campaigns, and influencer marketing.

 

Digital Ecosystem: As India’s digital advertising outpaced traditional media, Bengaluru’s tech DNA and digitally native agencies proved pivotal. More than 83% of product discovery in India now begins online, giving D2C brands and their Bengaluru partners an edge.

 

What Made the Difference?

Two seismic shifts rocketed Bengaluru to the advertising summit:

 

Rise of Startups and D2C Brands:

While Mumbai retained some financial dominance, funding and deal counts show startups prefer Bengaluru for growth and innovation. The city’s ad agencies—and in-house creative teams at unicorns—outpaced legacy Mumbai players in fast, experimental advertising suited for digital media, not just TV spots or glossy print.

 

Digital Disruption:

With digital commanding 51% of India’s total ad market in 2025, thanks to video, social, influencer, and retail media, Bengaluru’s agencies became industry pacesetters. Homegrown firms moved from supporting startups to becoming campaign architects for national and global clients, leveraging their deep expertise in mobile-first branding, content decay analytics, and AI-driven campaigns.

 

Unique Bengaluru Edge

Agility and Innovation:

Small, independent digital agencies in Bengaluru quickly adapted to market shifts, providing expanded digital services—beyond creative, to data analytics, e-commerce funnel management, and marketplace marketing. This approach resonated with India’s “attention-deficit” digital consumers.

 

Government and Ecosystem Support:

The Karnataka government’s proactive policy support for both technology and creative industries fostered co-working hubs, events, and mentorship, further fuelling the ecosystem.

 

Growth Across Sectors:

Enterprise tech, healthcare, e-commerce, and fintech startups drove advertising innovation in Bengaluru, while legacy clients in Mumbai saw slower shifts to digital-first media.

 

What’s Next for India’s New Ad Capital?

Industry insiders believe the trend is irreversible. Mumbai continues to house traditional heavyweights, but the center of gravity has moved south—thanks to Bengaluru’s blend of digital daring, tech know-how, and startup ambition.

 

With India’s ad market projected to reach ₹1,476 billion by 2026, growing at nearly 8% annually (and digital leading the charge), experts predict Bengaluru will stretch its lead as more D2C unicorns emerge and brand-building becomes inseparable from tech innovation.

 

As one Bengaluru agency founder puts it:

 

“From coding to content, from data to design—Bengaluru is where the new India sells itself, and the world listens.”

 

Sources: Hindustan Times, Economic Times, The Entrepreneur India, 21BY72, Hobo.Video, Financial Express, NRT.co.in