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A Bird’s Eye View Of Hyderabad’s Reinvigorated Startup Ecosystem: 77 Startups, $292 Mn

A Bird’s Eye View Of Hyderabad’s Reinvigorated Startup Ecosystem: 77 Startups, $292 Mn

Hyderabad, the once-wealthy and princely city of Nizams also known as the “City of Pearls” for its diamond and pearl trade, is now gearing up to become India’s top startup hub.

Hyderabad is home to biggies like Microsoft, Facebook, and Google in India. Global ecommerce major Amazon also chose the city for its largest warehouse (280,000 sq. ft.), capable of storing about 2 Mn products. Uber has invested $50 Mn in setting up a state-of-the-art facility in Hyderabad, which will eventually be its largest international office.

Although political issues like the Telangana movement might have put a glitch in Hyderabad’s march towards becoming a predominant startup hub, the region is returning to normalcy now. A group of government officials, investors, incubators, and startups in the city are attempting to make up for lost time and the results are already visible.

Facts And Figures

77 Startups have been funded between 2014-2016, with a total amount of $292 Mn.

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This year, 26 startups have already secured funding till August 2016. Through linear forecasting, we have projected close to 54 deals worth a total amount of $52 Mn by year-end.

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Investors have loosened their purses the most to startups in the healthtech sector. About $103 Mn was infused into the healthtech sector, contributing 35% of the total funding between 2014-2016.  MapMyGenome, Nephroplus, and Laurus Labs secured million dollar tickets during this period.

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Hyderabad Angels, Accel Partners, Bessemer Venture Partners, 50K Ventures, Rajan Anandan are the top investors that invested in the Hyderabad ecosystem between 2014-2016.

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What The Ecosystem Is Building Towards

Hyderabad has a growing network of investors who are now open to investing in startups. The city also has the right kind of support system with a growing number of accelerators, incubators, and coworking spaces to nurture young startups.

Recently, the Telangana Government has invested $6 Mn in building the biggest incubator facility in the country, T-Hub. T-Hub, designed for tech-related startups, is a 70,000 sq.ft. space in a building called CatalysT. The futuristic workspace is expected to house over 300 startups for up to 800 people. It has the makings of the largest Indian incubator in a single location entirely dedicated to entrepreneurship.

Experienced professionals and executives from Hyderabad are playing the role of mentors, guiding and advising at T-Hub. Hyderabad is also playing host to many startup events like Startup Saturday, August Fest, Devthon, TiE which provide a platform, all of which are very crucial to young startups.

In all, Hyderabad has positioned itself as one of the top hubs for entrepreneurs, and, as a result, startups in the city are booming.

Stay tuned for our ongoing coverage of the startup ecosystem in various other Indian cities, with Chennai coming up next.

[Graphics by Satya Yadav]