For years, Bengaluru held the undisputed title of India’s startup capital. But in recent times, a new city has quietly climbed the ranks to share the spotlight—Hyderabad. Once known primarily for its biryani, pearls, and heritage structures, Hyderabad is now recognized as one of the fastest-growing startup ecosystems in the country. With its mix of business-friendly policies, skilled talent, affordable infrastructure, and innovation-friendly mindset, Hyderabad is emerging as the go-to city for new-age entrepreneurs.
The Rise of a Tech-Smart Ecosystem
Hyderabad’s transformation into a startup powerhouse didn’t happen overnight. The roots were laid with the expansion of the IT sector in the early 2000s, when global tech giants began setting up their offices in HITEC City and Gachibowli. Over time, this influx of companies created a large pool of skilled professionals and developers. As more tech professionals found success, some chose to step out and build their own ventures.
The presence of top institutions like IIIT-Hyderabad, ISB, and BITS Pilani-Hyderabad ensured a steady stream of innovative minds ready to take entrepreneurial risks. The city’s educational ecosystem has been a quiet but crucial contributor to its startup journey.
T-Hub: Hyderabad’s Startup Engine
If there’s one initiative that changed the game for Hyderabad, it’s T-Hub. Launched in 2015, T-Hub started as a collaboration between the Telangana government and premier educational institutions. It has since grown into India’s largest innovation hub for startups. Offering mentorship, investor access, incubation, and a collaborative space, T-Hub positioned Hyderabad as a serious contender in the startup race.
Through T-Hub, Hyderabad began hosting global startup events, tech hackathons, and demo days where startups pitched to investors from across the globe. Startups from other states and even countries began looking at Hyderabad as a base for expansion or launch, given the support structure and ecosystem available.
Startup-Friendly Government Policies
One of the strongest drivers behind Hyderabad’s growth is the Telangana government’s proactive approach to startup development. The Telangana Innovation Policy introduced in 2016 focused on offering ease of doing business, faster approvals, seed funding, and infrastructure at low cost.
The state actively promotes innovation by supporting sectors like healthtech, agritech, AI, blockchain, and sustainability startups. Dedicated initiatives like WE-Hub (for women entrepreneurs), TSIC (Telangana State Innovation Cell), and TASK (Telangana Academy for Skill and Knowledge) show the government’s layered approach to building a future-ready startup ecosystem.
Affordable Living and Infrastructure
Compared to Bengaluru, Hyderabad offers startups a better cost advantage. Office space in Hyderabad is more affordable, traffic is relatively manageable, and housing is reasonably priced. For early-stage founders and bootstrapped startups, every rupee saved matters. Hyderabad’s balance between infrastructure and affordability gives it an edge.
Startups can find co-working spaces in areas like Madhapur, Jubilee Hills, Begumpet, and Kondapur that offer excellent internet connectivity, tech support, and networking opportunities—all without the steep prices seen in other metros.
Sectoral Diversity in Startups
Hyderabad’s startup landscape is not limited to IT or SaaS. The city has become home to diverse startups across verticals like:
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Healthtech: With world-class hospitals and research institutes, Hyderabad is becoming a hub for digital health startups focusing on diagnostics, telemedicine, and medical devices.
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Agritech: Given Telangana’s large rural base, several agritech startups have emerged, solving problems related to crop monitoring, yield forecasting, and supply chain.
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Pharma and Biotech: The presence of Genome Valley and pharmaceutical research firms has enabled biotech startups to thrive.
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EV and Mobility: Startups in the electric vehicle and battery space are increasingly choosing Hyderabad due to R&D-friendly policies and available test infrastructure.
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AI and DeepTech: Hyderabad’s link with engineering colleges and access to tech talent has made it ideal for building deep-tech solutions, AI products, and blockchain-based tools.
Success Stories Fueling the Ecosystem
What really builds credibility for a startup ecosystem is visible success. Hyderabad has begun to produce high-growth startups that are now turning into household names. Some notable examples include:
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RedBus: Though later moved operations, its early roots were connected to Hyderabad and inspired several local entrepreneurs.
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Skyroot Aerospace: This Hyderabad-based space-tech startup is building launch vehicles and recently made headlines with successful tests, attracting investor attention nationally.
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Darwinbox: A HR-tech platform born in Hyderabad, Darwinbox has grown rapidly across Asia and secured funding from global investors.
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MyGate: A community management app used in housing societies across India, with a large operational base in Hyderabad.
These brands have not only created impact but also built confidence among upcoming founders that it’s possible to scale from Hyderabad to the world.
Collaboration Over Competition
Another reason Hyderabad is becoming a preferred startup hub is the city’s culture of collaboration over competition. Entrepreneurs, mentors, VCs, and enablers regularly interact in informal meetups, events, and workshops. This openness has led to more partnerships, co-founding opportunities, and investor attention.
The startup community in Hyderabad is often described as “humble but ambitious.” Founders are eager to learn, support each other, and build businesses that last. Unlike some other cities, where funding and valuation talk dominates, Hyderabad keeps its focus on product, value, and sustainability.
Role of NRIs and Global Exposure
Hyderabad’s strong NRI base, especially in the US, has also played a part in its startup rise. Many Indian-origin entrepreneurs and investors from Silicon Valley are now mentoring or funding startups based in Hyderabad. Some have even moved back or opened offices here.
The city is also seeing reverse migration, with tech professionals leaving larger cities like Bengaluru, Mumbai, or Delhi to return to Hyderabad to build something of their own—motivated by family roots, better lifestyle, and easier startup conditions.
Challenges and the Road Ahead
Despite the momentum, Hyderabad still faces challenges. Access to capital at very early stages is still limited compared to cities like Bengaluru or Mumbai. More micro-VCs, angel funds, and accelerator programs are needed to support tier-2 and rural innovators.
The city also needs to promote its brand more aggressively at national and international platforms. Many investors still view Hyderabad as “up and coming” rather than fully established. Bridging this perception gap will help attract more interest from outside.
Additionally, policies must remain startup-focused with timely execution, as any slowdown can affect founder confidence.
Hyderabad has quietly and confidently transformed itself into India’s newest startup success story. It offers the right mix of talent, infrastructure, government support, cost efficiency, and cultural vibrancy. While Bengaluru still leads in terms of volume, Hyderabad is gaining attention for its quality of startups, depth in innovation, and founder-friendliness.
As Telangana continues to invest in technology and entrepreneurship, and more young minds choose innovation over job security, Hyderabad is set to become not just a follower—but a leader—in India’s startup journey.
