Hyderabad, the city of pearls, is shining brighter than ever—not just for its rich history or spicy biryani but as a buzzing hub for deep tech startups in India. Over the past decade, this vibrant city has transformed from an IT outsourcing giant into a powerhouse of innovation, where young entrepreneurs and brilliant minds are solving big problems with cutting-edge technologies like artificial intelligence (AI), robotics, drones, and biotechnology. But what’s driving this change? Why is Hyderabad becoming the go-to place for deep tech startups? Let’s dive into the story of how the city is shaping India’s tech future.
What Is Deep Tech, Anyway?
Before we get into Hyderabad’s rise, let’s break down what deep tech means. Unlike regular tech startups that build apps for food delivery or e-commerce, deep tech startups focus on solving complex, real-world problems using advanced science and engineering. Think of drones that monitor crops, AI that detects diseases faster than doctors, or rockets that make space travel cheaper. These are not quick-fix solutions but game-changers that need years of research, big investments, and bold ideas.
For instance, a Hyderabad startup might be working on a device that uses AI to predict heart attacks hours or a drone that maps farmland to help farmers grow more crops. Deep tech is about creating something truly new, and Hyderabad is leading the charge.
Why Hyderabad? The Perfect Recipe for Deep Tech
Hyderabad’s journey to becoming a deep tech hotspot didn’t happen by chance. The city has blended the right ingredients—talent, infrastructure, government support, and investor interest—to create an ecosystem where innovation thrives. Here’s a closer look at what’s making it happen:
1. A Goldmine of Talent
Hyderabad is home to some of India’s top engineering and research institutions, like IIT Hyderabad, IIIT Hyderabad, and BITS Pilani. These colleges produce thousands of graduates skilled in AI, machine learning, and robotics every year. Many of these bright minds choose to stay in Hyderabad, either starting their own companies or joining deep tech startups.
For example, Skyroot Aerospace, a Hyderabad-based startup, was founded by former ISRO scientists and IIT graduates. They’re building rockets to make space launches affordable, and their team’s expertise comes straight from Hyderabad’s academic hubs. With such a steady flow of talent, the city is a natural fit for deep tech innovation.
2. World-Class Incubators and Tech Hubs
Hyderabad boasts T-Hub, India’s largest startup incubator, which has supported over 2,000 startups since 2016. T-Hub offers everything a deep tech startup needs—mentors, funding, office space, and connections to investors. It’s like a launchpad for young companies, helping them turn ideas into reality.
Then there’s the Technology Innovation Hub on Autonomous Navigation (TIHAN) at IIT Hyderabad, which focuses on drones and self-driving tech. TIHAN recently invested in startups like UAVIO Labs, which builds smart drones for surveillance. These incubators don’t just provide money—they guide startups through the tough early stages, making Hyderabad a nurturing ground for deep tech.
3. Government Support and Policies
The Telangana government has been a cheerleader for startups, rolling out policies to make Hyderabad a tech-friendly city. From tax breaks to easy access to land for tech parks, the state is doing its bit to attract deep tech companies. The draft National Deep Tech Startup Policy (NDTSP) 2023, backed by the central government, also aims to boost cities like Hyderabad by offering funding and research support.
For instance, the government’s “Make in India” and “Atmanirbhar Bharat” initiatives have encouraged startups like ideaForge, a Hyderabad-based drone maker, to build world-class products locally. ideaForge’s drones are now used for everything from border security to mapping farmland, showing how policy support can fuel deep tech growth.
4. Investors Are Betting Big
Deep tech startups need big money because their projects take years to develop. Luckily, Hyderabad is catching the eye of venture capitalists (VCs) and global investors. In 2025 alone, deep tech startups in Hyderabad raised $11.4 million, according to industry reports. While funding dipped in 2023, 2024 saw a recovery, with investors pouring money into companies like Skyroot Aerospace and Marut Drones.
Investors are excited because Hyderabad’s startups are solving global problems. For example, xBITS, a local startup, created RightBiotic, a diagnostic kit that checks antibiotic resistance in just four hours—compared to the usual 48-72 hours. Such innovations attract big bucks, and Hyderabad’s startups are cashing in.
5. A Booming Ecosystem
Hyderabad’s tech ecosystem is like a bustling marketplace where startups, corporates, and researchers come together. The city’s tech parks, like HITEC City, house global giants like Microsoft and Google alongside homegrown startups. This mix creates opportunities for collaboration—big companies often partner with startups to test new tech.
Take 5C Network, a Hyderabad startup using AI to make radiology faster and more accurate. They’ve partnered with hospitals across India, showing how local startups can scale up by working with bigger players. This ecosystem makes Hyderabad a magnet for deep tech talent and ideas.
Hyderabad’s Deep Tech Stars
Hyderabad’s deep tech scene is full of inspiring stories. Here are a few startups putting the city on the global map:
- Skyroot Aerospace: India’s first private rocket-launching company, Skyroot is making spaceflight affordable with its Vikram series of rockets. Founded by IIT and ISRO alumni, they’ve already tested key components and aim to launch satellites for clients worldwide.
- Marut Drones: This startup builds drones for agriculture, helping farmers spray pesticides or monitor crops. Their drones are affordable and easy to use, making farming smarter and more sustainable.
- xBITS: Their RightBiotic kit is a game-changer for healthcare, speeding up antibiotic resistance tests. It’s a perfect example of how deep tech can save lives.
- Deep Vision: With offices in Hyderabad and California, this startup raised $35 million to build AI processors. Their tech powers everything from smart cameras to self-driving cars.
These companies show Hyderabad’s strength in diverse fields like space, agriculture, healthcare, and AI. And with 426 deep tech startups in the city (as of 2025), there’s no shortage of innovation.
Challenges on the Road Ahead
Hyderabad’s deep tech boom isn’t without hurdles. Funding is a big challenge—while seed-stage startups find investors easily, those looking for Series A or later rounds struggle. In 2023, deep tech funding in India dropped by 77%, and Hyderabad felt the pinch. Scaling up is another issue, as building hardware or biotech products takes time and money.
Talent retention is also tricky. Many skilled engineers are lured by high-paying jobs abroad or in bigger cities like Bengaluru. Plus, deep tech startups need to compete globally, which means meeting world-class standards while keeping costs low.
But Hyderabad is tackling these challenges head-on. Incubators like T-Hub are helping startups attract later-stage funding, while colleges are training more deep tech talent. The city’s collaborative spirit—where startups, universities, and corporates work together—gives it an edge.
What’s Next for Hyderabad?
Hyderabad’s deep tech story is just getting started. With over 1,100 high-tech companies and 426 deep tech startups, the city is poised to lead India’s innovation race. Experts predict that AI and data-driven startups alone could add $450-500 billion to India’s economy by 2025, and Hyderabad is at the heart of this growth.
The city’s focus on sectors like aerospace, healthcare, and agriculture aligns with global needs. For instance, startups like Newtrace, which works on green hydrogen, are tackling climate change—a problem that affects the world. Hyderabad’s ability to blend local talent with global ambitions makes it a deep tech powerhouse.
Government plans to create deep tech clusters, like an aerospace hub in Hyderabad, could take things to the next level. Imagine a mini-Silicon Valley where startups, researchers, and investors work side by side to build rockets or AI-powered medical devices. That’s the future Hyderabad is chasing.
Why It Matters for India
Hyderabad’s rise as a deep tech hotspot isn’t just about one city—it’s about India’s place in the world. Deep tech startups are solving problems that matter, from making healthcare affordable to fighting climate change. By leading in fields like AI, drones, and space tech, Hyderabad is showing that India can compete with giants like the US and China.
For young Indians, this is a chance to dream big. You don’t need to move to Silicon Valley to build a world-changing company—Hyderabad has everything you need. Whether you’re an engineer, a scientist, or an entrepreneur, the city’s deep tech ecosystem is calling.
Last Updated on Tuesday, July 8, 2025 1:22 pm by Ganpisetty Surya Teja
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