Ranadivé grew up in the Juhu area of Bombay, India, and was the youngest of three children. At 16, Ranadivé was accepted to MIT, but in the 1970s the Indian government did not release foreign currency for citizens to study abroad. Ranadivé talked his way into the office of the Reserve Bank of India and got the required foreign exchange for one quarter of the tuition.
After earning bachelor's and master's degrees from MIT, he obtained an MBA from Harvard University in 1983. While at MIT, Ranadivé started his first company, a UNIX consulting company. He also held management and engineering positions with Ford Motor Company, M/A-Com Linkabit and Fortune Systems.
Teknekron Corp., a technology incubator, provided $250,000 in seed capital to Ranadivé in 1985 to found Teknekron Software Systems.
In 1997, Ranadivé founded TIBCO Software Inc. with funding from Cisco and Reuters.
In 2010, Ranadivé became the co-owner and vice chairman of the Golden State Warriors, making him the first person of Indian descent to own an NBA franchise.