Investors Crown Hyderabad As India’s Next Startup Powerhouse

Over the past three years, Hyderabad has emerged as a significant startup destination with more than 240 funded startups, supported by 550+ domestic and international investors, resulting in a total funding of $2.6 Bn between January 2014 and August 2023

The blend of advanced amenities and cost-effectiveness has positioned Hyderabad as a prime destination for founders and investors, driven by its superior infrastructure (at times, even better than Bengaluru), affordable real estate and competitive cost of living

The city is increasingly becoming a popular location for B2B SaaS, manufacturing, fintech and IT sectors, partially due to the presence of T-Hub and availability of affordable yet skilled workforce from top institutions like IIT-Hyderabad

Indian startups secured an impressive $141 Bn in funding through more than 1,900 deals between January 2014 and August 2023. Investors primarily concentrated on top-tier cities such as Delhi NCR, Mumbai and Bengaluru in the initial years. But of late, there has been a significant shift in focus as newly emerging startup hubs are capturing substantial investor interest and gaining prominence. Of these, Hyderabad, the capital of Telangana and a major economic hub of India, has grabbed significant investor attention in recent times.

But Hyderabad had its fair share of ups and downs on the investor radar, especially compared to other emerging hubs like Pune and Chennai. It is also important to note that in 2015, when other Indian states surged ahead, thanks to Startup India and Make In India initiatives, the city grappled with the aftermath of Andhra Pradesh bifurcation in 2014.

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