There is a newly available 150 Million middle-class with smartphones and Internet. The huge market in each city (Bangalore alone has 1 Million IT folks, middle

There is a newly available 150 Million middle-class with smartphones and Internet. The huge market in each city (Bangalore alone has 1 Million IT folks, middle class is ~5 Million), the high density (10K/sqkm), high Internet penetration, make this a market comparable to the largest US cities. These cities now have critical mass to kickstart new product companies. The daily friction of life is so high, that home delivery/ecommerce is changing the entire retail landscape including in food and groceries, and soon in services too. Bangalore is on par with SF on food/grocery delivery, and perhaps ahead on services delivery (see home medical service startups like Portea.com). Startups are not a bubble per se. We need more startups to smoothen out the rough edges of life in India. However, late stage valuations may be in a bubble. In the early stage, valuations are moderate.