Hyderabad, often celebrated as the “City of Pearls,” is rapidly earning a new title: India’s next big startup hub. While cities like Bengaluru, Mumbai, and Delhi have long dominated the Indian startup scene, Hyderabad has quietly been carving out its own space, emerging as a vibrant ecosystem for innovation and entrepreneurship. With its unique blend of world-class infrastructure, supportive government policies, a skilled talent pool, and a thriving network of incubators, Hyderabad is becoming a magnet for startups and investors alike.
A Booming Startup Landscape
Over the past decade, Hyderabad’s startup ecosystem has grown at an astonishing pace. In 2014, the city was home to just 200 startups. Fast forward to 2025, and that number has skyrocketed to over 9,000, according to government officials and industry reports. This remarkable growth reflects Hyderabad’s transformation into a dynamic hub for innovation, attracting entrepreneurs across sectors like healthtech, fintech, edtech, and B2B SaaS (Software as a Service). The city has already produced two unicorns—startups valued at over $1 billion—and 14 “soonicorns” (startups on the verge of unicorn status), with a cumulative funding of $3.4 billion by 2024.
What’s driving this surge? A combination of factors makes Hyderabad an irresistible destination for startups. From affordable real estate to a supportive government, the city offers an environment where entrepreneurs can dream big and scale fast.
World-Class Infrastructure and Affordability
One of Hyderabad’s biggest strengths is its top-notch infrastructure, which rivals even Bengaluru, often considered India’s Silicon Valley. In the first half of 2023, Hyderabad added 8.2 million square feet of new office space, accounting for 34% of the total new office supply across India’s top seven cities. This abundance of modern office spaces, tech parks, and co-working hubs makes it easy for startups to set up shop without breaking the bank.
Unlike metro cities like Mumbai and Delhi, where sky-high real estate prices can be a barrier for young companies, Hyderabad offers affordable office spaces and a lower cost of living. This affordability allows startups to allocate more of their budgets to innovation, hiring talent, and scaling operations. For example, a small startup can rent a modern office in Hyderabad’s HITEC City—home to tech giants like Google, Microsoft, and Amazon—at a fraction of the cost of a similar space in Bengaluru or Mumbai.
The city’s infrastructure isn’t just about office spaces. Hyderabad boasts excellent connectivity, with an expanding metro network, a world-class international airport, and well-maintained roads. These factors make it easier for startups to operate efficiently and attract global clients and investors.
A Talent Pool That Fuels Innovation
At the heart of any thriving startup ecosystem is access to skilled talent, and Hyderabad delivers in spades. The city is home to premier educational institutions like the Indian Institute of Technology (IIT) Hyderabad, the International Institute of Information Technology (IIIT-H), and the Indian School of Business (ISB). These institutions produce a steady stream of engineers, developers, and business graduates who are ready to drive innovation.
Hyderabad’s talent pool is not only skilled but also cost-effective compared to other major cities. The availability of affordable, high-quality talent allows startups to build strong teams without the hefty salary costs seen in Bengaluru or Delhi. Additionally, the city’s cosmopolitan culture attracts professionals from across India, creating a diverse workforce that brings fresh perspectives to the startup ecosystem.
Government Support: A Game-Changer
The Telangana government has played a pivotal role in transforming Hyderabad into a startup hotspot. Since the state’s formation in 2014, the government has rolled out proactive policies to nurture entrepreneurship. Initiatives like T-Hub, T-Works, and WE Hub have become cornerstones of Hyderabad’s startup ecosystem.
- T-Hub: Launched in 2015, T-Hub is India’s largest startup incubator, supporting over 2,000 startups and facilitating funding worth $1.94 billion by 2022. It provides startups with mentorship, networking opportunities, and access to investors, helping them scale both nationally and globally. T-Hub’s flagship programs, like RubriX, focus on helping early-stage startups develop prototypes and reach the market faster.
- T-Works: India’s largest prototyping center, T-Works supports hardware startups by providing access to advanced labs and workshops. This is particularly significant for startups in deep tech, agritech, and manufacturing, sectors where Hyderabad is making a mark.
- WE Hub: India’s first state-led incubator focused on women entrepreneurs, WE Hub empowers women-led startups with funding, mentorship, and resources. This initiative has contributed to the rise of women-led businesses in Hyderabad, aligning with the national trend of increasing female entrepreneurship.
The Telangana government also offers incentives like recruitment assistance (₹10,000 per employee in the first year) and performance grants for startups showing 15% year-on-year growth. These policies create a nurturing environment for startups to thrive. As Jayesh Ranjan, Special Chief Secretary of Telangana’s IT and Industries Department, noted at a 2025 event, the government’s support, combined with collaborative spaces, has been key to Hyderabad’s startup boom.
A Thriving Network of Incubators and Investors
Hyderabad’s startup ecosystem is bolstered by a robust network of incubators, accelerators, and venture capital firms. Organizations like Hyderabad Angels, Anthill Ventures, Endiya Partners, and SucSEED have been instrumental in connecting startups with investors. Since 2014, over 550 domestic and international investors have backed Hyderabad’s startups, injecting $2.6 billion into the ecosystem between January 2014 and August 2023.
The presence of global tech giants like Google, Amazon, and Microsoft in Hyderabad also adds credibility to the city’s startup scene. These companies not only provide inspiration but also collaborate with local startups, offering technical expertise and market access. For instance, T-Hub’s partnerships with international players like the UK’s Digital Catapult and Australia’s La Trobe University have opened doors for Hyderabad-based startups to explore global markets.
Sectoral Diversity: Beyond IT
While Hyderabad has long been known as an IT hub, its startup ecosystem is diversifying rapidly. The city is emerging as a leader in sectors like:
- Healthtech: In 2024, Hyderabad’s healthtech sector secured $300 million in funding, driven by companies like Apollo 24/7, which accounted for a significant portion of the investment. Other notable players include Bharat Biotech, a global leader in vaccine manufacturing.
- Fintech: Fintech startups like Vivifi India and Zaggle are gaining traction, with the sector raising $105 million in 2024 alone. Hyderabad’s fintech scene benefits from the city’s strong IT infrastructure and a growing demand for digital financial services.
- Edtech: Companies like Bhanzu are revolutionizing education with innovative learning platforms, while agritech startups like UrbanKisaan are using sustainable practices to transform urban farming.
- Aerospace and Deep Tech: Hyderabad is home to Skyroot Aerospace, which is making spaceflight more accessible, and other deep tech startups like Vividminds Technologies, recognized at the National Startup Awards 2023.
This sectoral diversity ensures that Hyderabad’s startup ecosystem is not overly reliant on one industry, making it resilient and adaptable to marketTrends.
Success Stories: Startups Making Waves
Hyderabad’s startup ecosystem is home to several success stories that highlight its potential:
- Bharat Biotech: A global leader in vaccine production, Bharat Biotech has delivered over 9 billion doses to 125 countries, showcasing Hyderabad’s strength in biotech.
- Skyroot Aerospace: This aerospace startup is normalizing spaceflight with on-demand earth-to-space trips, putting Hyderabad on the map for cutting-edge innovation.
- Darwinbox: A SaaS platform for HR management, Darwinbox serves over 850 companies in 100 countries, demonstrating Hyderabad’s prowess in B2B SaaS.
- UrbanKisaan: By using hydroponic and vertical farming, UrbanKisaan is revolutionizing sustainable agriculture, saving water and reducing carbon footprints.
These success stories inspire a new generation of entrepreneurs and attract investors looking for the next big thing.
Last Updated on Wednesday, July 9, 2025 11:37 am by Ganpisetty Surya Teja
About The Author
