The role of startup incubators in nurturing manufacturing entrepreneurs
India
Telangana
MEMBERS:
T-Hub Foundation
“Hyderabad's transformation from 200 startups in 2014 to over 7,500 today showcases Telangana’s focus on fostering an ecosystem for entrepreneurs. T-Hub catalyzed this growth by empowering startups in their journey with resources, investors, mentors, and support systems”
Highlights
Carved out of Andhra Pradesh in 2014, Telangana is India’s newest state. Its capital, Hyderabad, serves as the driving force behind its flourishing tech landscape, ranking #5 Indian ecosystem in GSER 2024.
Several Telangana-based startups have garnered over $100 million in funding since 2014, including Greenko Group ($355 million), Zenoti ($331 million), Spandana Sphoorty ($251 million), and Smartron ($225 million). Four Telangana startups were among the 20 winners of National Startup Awards 2023: Axial Aero (Defense), Jiva Business Ventures (Insurtech), Vividminds Technologies (Deeptech), and Autocracy Machinery (Agritech).
T-Hub is India’s premiere innovation hub, accelerating the growth of over 2,000 startups and raising almost $2 billion in investments. T-Hub is part of Telangana's new and expansive 2.4 million square foot innovation campus, which also includes T-Works and the upcoming IMAGE Tower. Among its many initiatives, T-Hub is collaborating with the Algorand Foundation on the Algorand Startup Lab program to accelerate Web3 startups in India.
In 2024, Hyderabad Angels Fund launched its first VC fund with a $12.1 million corpus and $6 million greenshoe option, targeting up to $604,000 investments in 20 tech and AI-driven startups at early stages. Renewable energy solutions platform Fourth Partner Energy raised $110 million in August 2023 from Norway’s Norfund and the World Bank’s IFC. It has an installed solar portfolio of 1.35 GW and aims to reach a 3.5 GW asset base by 2025. Fintech firm Vivifi India Finance secured $75 million in a January 2024 Series B round, reaching a $150 million valuation.
Ecosystem by the Numbers
NUMBER OF UNICORNS
(H2 2021 - 2023)
Sub-Sector Strengths
Agtech & New Food
In May 2023, Telangana’s Agriculture Ministry inaugurated an advanced biological control lab at the National Institute of Plant Health Management Hyderabad, boosting the state’s sustainable farming and farmer training capacities. In August 2023, the state’s IT Ministry launched India's first Agricultural Data Exchange and Agriculture Data Management Framework to revolutionize fair data usage and spur the Agtech data economy. Superfood supplier Nourish You raised $2 million in a January 2023 seed round. The firm also acquired Bengaluru-based vegan dairy brand One Good.
Life Sciences
Telangana aims to become the world’s Life Sciences capital over the next decade, it hosts over 1000 pharmaceutical firms which contribute to 35% of India’s pharmaceuticals and one-third of global vaccines. Home to specialized clusters like Genome Valley and Medical Devices Park, Telangana is a research and development hotspot with over a $80 billion valuation. In February 2024, the state announced it would develop 10 Pharma Villages with manufacturing and RD facilities across the state, and invest up to $3.6 million in Genome Valley.
AI, Big Data & Analytics
The Telangana government will host a global AI summit in Hyderabad in July 2024 to establish it as a global AI hub, coinciding with the opening of the Machine Learning and Artificial Intelligence Technology Hub, a new center of excellence for AI at T-Hub aiming to create over 500 AI-related jobs by 2025 and nurture more than 150 startups annually. In May 2023, aviation platform ZestIoT raised a $6.5 million Series A round.
Reasons to Move Your Startup to Telangana
Access to Talent
Telangana has a labor force participation rate (LFPR) of 65.4% and a female LFPR of 50%, notably higher than the national average. It boasts a rich pool of tech talent nurtured by the Indian Institute of Information Technology, recognized as one of India's top computer science institutes. ISB and NALSAR enhance the ecosystem with top-tier engineering and business expertise.
Established Startup Hub
Hyderabad is home to a vibrant community of incubators, accelerators, and venture capital firms, including T-Angel, T-Hub, We-Hub, DLabs (by Indian School of Business), and IIT-Hyderabad Foundation. T-Hub’s Innovate Telangana aims to spotlight and scale top startups in Telangana. Telangana State Innovation Cell’s Intinta Innovator program identifies and nurtures grassroots innovators across Telangana.
Dedicated Incentives
Telangana's innovation landscape is underpinned by a suite of incentives such as 50% VAT/CST reimbursement for 7 years, power cost rebates, and a 25% land cost rebate up to $12,000, cementing the state's top ranking in India for ease of doing business. The TS-iPASS Act of 2014 guarantees swift project approvals within 15 to 30 days.
Selected Startup Organizations
Startup Genome Members
Key Ecosystem Players
CIE IIIT H (Center for Innovation and Entrepreneurship, IIIT Hyderabad)
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