Hyderabad has been crowned as the next start up powerhouse and emerged as one of the top five startup hubs in India.
Based on a comprehensive survey of over 70 active Venture Capital firms in India, which included senior-level executives such as general partners and principals, investors have bestowed upon Hyderabad the title of India’s next startup powerhouse, as reported in ‘The State of Indian Startup Ecosystem Report 2023’ by Inc42.
Hyderabad has been emerging as a major start up destination over the past three years. The city has more than 240 funded start-ups, supported by 550 plus domestic and international investors, resulting in a total funding of $2.6 Bn between January 2014 and August 2023, according to Inc42 data.
According to the report, Hyderabad has emerged as one of the top five start-up hubs for leading sectors, including ecommerce, healthcare, edtech, and media & entertainment.
The city is undoubtedly thriving, particularly in sectors like B2B SaaS, manufacturing, fintech, and IT. A significant factor contributing to this success is the presence of institutions like T-Hub, We-Hub, and others. Moreover, the city hosts a pool of highly skilled professionals from prestigious institutions such as IIT-Hyderabad.
Hyderabad has benefited from the presence of institutions like IIT-Hyderabad, IIIT-H (International Institute of Information Technology), and ISB, which collectively contribute to a diverse and highly skilled talent pool. Moreover, collaborations between start-ups and prestigious institutions, such as ISB, have promoted the exchange of knowledge and talent acquisition.
Indian start-ups secured more than $141 Bn in total funding between January 2014 and August 2023. Investors usually preferred top-tier cities like Delhi NCR, Bengaluru, and Mumbai in the initial years. But recently, Hyderabad start-ups have been attracting significant investors.
With a thriving ecosystem, robust government backing, a spectrum of diverse industries, a highly skilled workforce, and top-notch infrastructure, the city possesses all the essential elements for start-ups to not only survive but excel, solidifying its position as a start-up powerhouse.