A business strategist and entrepreneur has asserted that she successfully persuaded a client to shift their company’s headquarters from Kolkata to Bengaluru, a move that allegedly led to a 50% surge in the company’s valuation. Piyu Dutta, the London-based founder of the strategy consulting firm Anthropia, revealed that the mere presence of a Kolkata address was negatively impacting the company’s market perception and overall valuation.
Why Bengaluru?
Bengaluru, widely recognized as India’s “Silicon Valley,” has long been the preferred hub for startups and technology-driven enterprises. The city has played a crucial role in fostering the growth of global success stories like Flipkart and Myntra. According to the Asian Times, Bengaluru is home to over 67,000 registered IT firms and an estimated 7,500 startups, making it a powerhouse for business expansion and investor confidence.
From Kolkata to Bengaluru: The Shift That Paid Off
Dutta took to X (formerly Twitter) to share her experience, stating, “I convinced a client to relocate their headquarters to Bengaluru. Having a Kolkata address was reducing their valuation by half. It’s that extreme.”
Her assertion sparked a lively debate on social media, with professionals and entrepreneurs weighing in on the impact of location on a company’s financial standing.
Mixed Reactions From The Business Community
Many online users expressed surprise at the notion that simply having a Kolkata-based headquarters could diminish a company’s perceived value. Others argued that Kolkata provides a cost-effective environment for businesses, with significantly lower operational expenses compared to cities like Bengaluru or Mumbai. However, several individuals agreed with Dutta’s viewpoint, stating that investors and venture capitalists often favor businesses headquartered in well-established startup ecosystems.
One commenter, Swagatam Sinha, shared a similar experience, writing, “I know of someone who was launching a boutique business and seeking investors. She was repeatedly advised to establish her company in a larger state, as potential investors were unwilling to fund a venture based in Kolkata or West Bengal.”
Another user offered a tongue-in-cheek take on the situation, saying, “Just a difference in zip code can change everything. Rename the company after some obscure artifact from the Lord of the Rings universe, sprinkle AI-related jargon into the product descriptions, and suddenly, your valuation skyrockets by 200%. Investors will be falling over themselves to fund you.”
Dutta’s claim has reignited discussions about the role geography plays in shaping a company’s growth prospects, proving that in the corporate world, location truly does matter.
