Will Hyderabad overtake Bengaluru as India’s foremost startup hub?

Bengaluru might have hoarded the startup spotlight lately, yet Hyderabad has been working towards building one of the most grounded establishments for an intense startup biological community and center point in India. Truth be told, sometime in the past it was trusted that Hyderabad would give Bengaluru an extreme rivalry.

At the crest of its IT insurgency, Hyderabad was home to biggies such as Microsoft, Facebook, and Google. A typical account of the time was the way then Chief Minister, Chandrababu Naidu, dealt with a meeting Bill Gates and persuaded him to begin Microsoft’s Research Center out of Hyderabad.In any case, the Telangana struggle removed center from the city. Today, Hyderabad is back with a blast with different activities to assemble a more grounded than – ever startup biological community. YourStory as of now tracks 1,800 new businesses in Hyderabad.There is a kernel of truth in what Sateesh says. Hyderabad is home to big names like GVK Biosciences. Over 80 per cent of bulk pharma and drug industries are established in and around Hyderabad.

Funding galore
Before we get into the different ingredients, that make a truly powerful Hyderabadi startup biryani, here is a sneak peek into the funding details in the city:

Funding trend in the past five years in Hyderabad:


The Hyderabad Startups

Apart from mobile-app-focussed startups like CanvasFlip, AppVirality and Zify, the health and wellness sector appears to be dominating the scene in terms of funding with the likes of ManageMySpa, Zapluk, MapMyGenome, Truweight and Healthians getting investments. Others include Pricejugaad and MySmartPrice.


In September last year, a NASSCOM report showed that close to eight percent of the startup activity in India is happening in Hyderabad. Sanjay Enishetty, 50K ventures, says that by 2018, the Hyderabad Startup Ecosystem will possibly be bigger than the Bengaluru Startup Ecosystem.However, over the past few years, the kind of startups that have grown in Hyderabad are in the enterprise software, commerce, and healthcare sectors.The entrepreneurs themselves along with the growing number of entrepreneurs and people starting up, the quality of people starting up is also improving. Ramesh says that the quality of entrepreneurship in the city has seen a significant improvement in the past year.

So what are the key ingredients that make Hyderabad a great startup ecosystem? Ramesh adds that a startup needs no more than five good people, and Hyderabad is one of the biggest regions to get tech talent

I. The infrastructure

For any startup to thrive, apart from the product, you need the right team and infrastructure in place. And Hyderabad has ensured that the city has a strong infrastructural base. In fact, the infrastructural foundation of the city was laid in the early 2000s.

  1. Building an incubation ecosystem – T-Hub

    There possibly has not been a better time for startups in India, with the Startup India initiative and more recent announcement. But with Hyderabad specifically, there has been a surge in government support. Recently, the youngest state in the country, Telangana made headlines with the announcement of its largest incubation centre in India – T-Hub.
    The Telangana government is also in the process of setting up two more incubation centres in the gaming and animation and aerospace sectors soon, state IT minister K T Rama Rao said. The government has started a pilot project to digitise the health records of its 35 million citizens across the state.
    Located in the IIIT campus, T-Hub is called ‘the incubator of incubators’ by mentors and incubator heads in Hyderabad. Explaining this, Ajit Raj of T-Hub says that the aim of the incubation centre is to create a complete ecosystem for startups.

  2. The academic incubation centres

    “When I was working at the CIE there were close to 11 startups in the centre, and close to a year later, when I was leaving CIE, there were close of 70 startups in the incubation centre,” says Manoj Surya, Founder of Zenty. Apart from CIE in IIIT, the other incubation centres are at ISB and BITS Pilani.
    Praveen Dorna, Co-Founder Startup Byte and the Head Incubation manager at CIE says that the kind of entrepreneurs at CIE aren’t very different from entrepreneurs elsewhere, but the idea is that the incubation centre provides a solid base for founders who are looking to build great products and need support of infrastructure, mentors and advisors.

  3. Co-working spaces
    Raghuveer Kovuru, Startup Coach and Community Animator at Co.Lab.Orate says that while startup activity in Hyderabad cannot be compared to Bengaluru, the city is nevertheless working slowly and steadily to become a strong ecosystem base.In most co-working spaces, there are events and talks on funding, growth, and key advice that any first-time entrepreneur would seek.

II. People
Startups and startup ecosystems are defined by the kind of people who form the startups or the ecosystem. In Hyderabad, with government support and infrastructural elements in place, it is now up to the entrepreneurs to build and develop this ecosystem.

  1. Availability of talent
    The growing number of top education institutes in the city not only ensures great incubation centres, but also that startups get the much-needed tech talent and people. Ramesh says that after Bengaluru, Hyderabad possibly has the most thriving talent pool across different sectors. The city has seen growth and development across different verticals, ensuring that the talent has grown to an exponential level in the city.
  2. An interlinked network
    Looking at the growing number of entrepreneurs and startups in Hyderabad, key advisors, mentors, incubator heads and investors decided to get together and help entrepreneurs in the city. The idea was simple; it was focussed on helping the startups leverage the experience and understanding of mentors and investors.

Today, Hyderabad is among the most accessible and connected ecosystems in the country.“Everyone is open to talk to and the kind of advice one gets is very open and constructive. This is because, everyone wants the ecosystem to grow and thrive,” adds Manoj.

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