Hyderabad, the City of Pearls, has always been known for pearls trade, Charminar, Ramoji Film City and of course biryani that nobody can resist. But now the city has another tag attached to it. It’s slowly becoming one of India’s biggest startup hubs. In fact, Hyderabad ranks 4th in India and 65th globally as a startup ecosystem (source).
So what’s really going on? Why are so many founders, entrepreneurs and investors choosing this city over the others? And why do we keep hearing about startup companies in Hyderabad more than before? Let’s unpack.
The Rise of Startup Companies in Hyderabad
Between 2014 and 2023, startups from Hyderabad attracted close to $141 billion in funding (source). That’s not a small number at all. Clearly the city has become attractive for both Indian and foreign investors.
The main recipe? Low operational cost, strong infrastructure, and a government that actually does something instead of just talking.
1. Incubators Lifting Up Startups
Incubators are like oxygen for startups. In Hyderabad, they provide space to work, mentorship, investors’ contacts and also guidance for fundraising.
A few well-known ones include:
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T-Hub (government backed)
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We-Hub (for women entrepreneurs)
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DLabs at ISB
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IIIT-H incubator (for deep-tech startups)
Thanks to these, many startup companies in Hyderabad have scaled up faster than they would in other cities.
2. Plenty of Talent Around
No startup can run without good people. Hyderabad has some of India’s top institutes like IIIT-H, IIT-H, ISB, Osmania University, NALSAR etc. Every year, thousands of smart graduates come out and startups grab them quickly.
For founders, this constant talent supply is one of the biggest plus points of setting up in Hyderabad.
3. Government’s Real Push
Something unique about Hyderabad is that the government here has genuinely worked to support startups. Not just making big announcements, but building things that help. For example:
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Innovation Policy to encourage new ideas
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T-Works, India’s biggest prototyping center
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TSIC (Telangana State Innovation Cell) to build entrepreneurial thinking
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RICH to help science & tech-based startups
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TASK to upskill students and young professionals
These all together make the ecosystem much stronger for startup companies in Hyderabad.
4. Investors Are Noticing
Funding scene is growing quickly. In 2024 alone, Hyderabad startups raised around $571 million, which is 160% more than the year before (source).
Compared to Bangalore or Mumbai, Hyderabad is cheaper to run operations. So investors get more return on investment here. And with government backed funds like T-Fund and T-Spark, even early-stage companies are finding some support.
Top Sectors Where Startup Companies in Hyderabad Are Growing
The city isn’t depending on just one industry. Startups here are spread across different areas, but three sectors really stand out:
HealthTech
Since Hyderabad is already strong in biotech and life sciences, it’s natural that health-tech is booming. In 2024, health-tech startups here raised more than $300 million.
Startups to watch: MapmyGenome, Docturnal
FinTech
With the IT base, fintech is growing fast as well. In 2024, fintech startups raised $105 million, which was 91% more than last year.
Startups to watch: Zaggle, KFin Technologies, Qapita, Payswiff
AgriTech
Agritech startups are solving problems in farming and food production with tech solutions. In 2024, the sector pulled in $32 million.
Startups to watch: Marut Drones, Cornext, Swap
Networking & Startup Events
One more reason people love building companies in Hyderabad is the buzzing event scene. Big events like the Global Startup Summit by 21BY72 bring together entrepreneurs, investors and mentors.
Fun fact: Season 4 of Global Startup Summit is coming soon. Early bird tickets already out!
Conclusion
Hyderabad is not just City of Pearls anymore, it’s becoming City of Startups too. With incubators, strong talent supply, real government support and loads of funding coming in, startup companies in Hyderabad are growing fast in health, fintech and agri.
For any founder or investor, Hyderabad is now a place you can’t ignore. Lower costs + higher ROI = perfect launchpad for new ideas.
FAQs
1. Is Hyderabad good for startups?
Yes, absolutely. With incubators like T-Hub, a skilled workforce, and investors like Sequoia Capital and Hyderabad Angels, the city is one of the top startup hubs in India.
2. How can startup companies in Hyderabad get funding?
Through angel investors, VC firms (Sequoia, Endiya Partners), government grants, and incubator programs. Plus, events are great for networking and pitching.
3. What challenges do startups face in Hyderabad?
Early-stage funding is still tricky. Competition in fintech and agritech is high. Retaining talent is also hard since many prefer MNC jobs. And yes, compliance/regulation takes time.
4. Which are some top startup companies in Hyderabad?
A few popular ones:
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Darwinbox (HR tech)
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Skyroot Aerospace (space-tech)
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H-Bots Robotics (AI & robotics)
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Zaggle (fintech)
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