Hyderabad has been named India's next startup hub

Hyderabad has become one of India's top five startup hubs and has been designated the next startup powerhouse. 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, Inc42's 'The State of Indian Startup Ecosystem Report 2023' identifies Hyderabad as India's next startup powerhouse.

Over the past three years, Hyderabad has emerged as a major centre for fledgling companies. According to data from Inc42, the city has more than 240 funded start-ups backed by 550+ domestic and international investors, accumulating $2.6 Billion in funding between January 2014 and August 2023. The research indicates that Hyderabad has become one of the top five start-up hubs for key industries such as e-commerce, healthcare, Edtech, and media & entertainment.

Certainly, the city is flourishing, particularly in B2B SaaS, manufacturing, fintech, and IT industries. There are institutions such as T-Hub, We-Hub, and others, which has a significant impact on this success. The city also has an abundance of highly trained experts educated at prestigious institutions like the Indian Institute of Technology (IIT) in Hyderabad.

Hyderabad has benefited from institutions such as IIT-Hyderabad, IIIT-H (International Institute of Information Technology), and ISB, which contribute to a diverse and highly qualified labour force. In addition, partnerships between youthful companies and prestigious organisations such as ISB have facilitated the transfer of knowledge and the recruitment of top talent.

Between January 2014 and August 2023, investments in indian businesses exceeded $141 billion. During the early years, investors favoured top-tier cities such as Delhi NCR, Bengaluru, and Mumbai. However, businesses in Hyderabad have recently attracted significant funding. The city has all the necessary elements for start-ups to not only endure but thrive, solidifying its position as a startup powerhouse. These include a dynamic ecosystem, robust government backing, a spectrum of various industries, a highly qualified workforce, and top-notch infrastructure.