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Founder says moving company to Bengaluru increased its valuation by 50%
The founder of a strategy consulting firm has claimed that she convinced a client to move their headquarters from Kolkata to Bengaluru.
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The founder of a strategy consulting firm has claimed that she convinced a client to move their headquarters from Kolkata to Bengaluru - a decision that increased the company’s valuation by 50%. Piyu Dutta, the London-based founder of Anthropia, said that her client’s Kolkata address was affecting the firm’s valuation.
HT.com has not independently verified the authenticity of this information.
Bengaluru, often dubbed the "Silicon Valley of India," has cemented its status as the nation's leading technology and startup ecosystem. It is the city that gave rise to success stories like Flipkart and Myntra. According to Asian Times, Bengaluru has over 67,000 registered IT companies and more than 7,500 startups.
From Kolkata to Bengaluru
“Convinced a client to move HO to Bangalore. Kolkata address was discounting the valuation by 50%,” Piyu Dutta claimed on X, adding: “It’s that wild.”
Her post highlighting the significance of corporate headquarters in company valuations has prompted a spirited discussion on the issue.
In the comments section of the post, many people said they were surprised to learn that a Kolkata address could affect a company’s perception and valuation. Others said that running a business in Kolkata could lead to massive savings as overhead costs are lower. However, many agreed with Dutta’s take.
“Yes, I know of a similar case. An acquaintance was creating a small boutique and was scouting for funds. She was repeatedly told, go to any other big state, we will fund you. But not if you locate in Kolkata/ WB....” X user Swagatam Sinha claimed in the comments section.
“Literal pincode difference.. should rename the firm after some arcane Tolkein-verse artifact, pepper their products with AI buzzwords. Voila, you get a 200% valuation spike. VCs throwing themselves at you,” another X user suggested.
Others raised doubts about the authenticity of Dutta’s claims, calling them “exaggerated.”
