India

Telangana

MEMBERS:
T-Hub Foundation

Telangana is unique in the way it has created a world-class Innovation Ecosystem through pioneering efforts in Startups, research, high-calibre talent and policy framework.

Ravi Narayan
CEO, T-Hub
Top 15 Asian Ecosystem: Affordable Talent
Top 20 Asian Ecosystem: Funding
Top 30 Asian Ecosystem: Performance

Highlights

Telangana, India’s newest state, displays all the energy, growth, and path-breaking thinking you’d expect from a young, upstart ecosystem. Despite the pandemic, Telangana’s IT sector recorded an 18% growth rate year on year in 2020, compared with a national rate of 8.09%. Telangana may be a young state, but the roots of its success go deep. The state’s capital, Hyderabad, boasts eight universities and is home to one of the largest populations of students seeking technical education in India. Hyderabad also hosts several research centers focused on pharma, biotech and defence-related technology. The state government is deploying a range of policies building on this strong foundation. The Telangana Social Startup Network (TSSN), for instance, aims to help establish 5,000 startups in the next 5 years, with a particular focus on social startups. Telangana startups also benefit from access to numerous local investors, including Hyderabad Angels, Anthill Ventures, Sri Capital, Endiya Partners, and Indian Angel Network. Earlier in their journey, startups can access a range of incubators and support programs. WE-Hub is India’s only incubator for women. It has supported more than 3,000 female entrepreneurs since its establishment. The state also boasts two of the largest incubation centers in the country, IIIT Hyderabad and T-Hub. TiE Hyderabad Bio/Agri-Startup Demo Day brings together AgriBusiness incubators from across the country.

Ecosystem by the numbers

TOTAL EARLY STAGE FUNDING
$120 m
GLOBAL AVG.
$431 m
ECOSYSTEM VALUE
$1.56 bn
GLOBAL AVG.
$10.5 bn
MEDIAN SEED ROUND
$150 k
GLOBAL AVG.
$494 k
MEDIAN SERIES A ROUND
$3 m
GLOBAL AVG.
$2.7 m
SOFT. ENGINEER SALARY
$12 k
GLOBAL AVG.
$42.1 k

Sub-sector Strengths

Life Sciences

Telangana’s Life Sciences sub-sector, dubbed Genome Valley, is already robust, accounting for 35-40% of India’s pharma production. The government’s Genome Valley 2.0 initiative aims to further grow Telangana into a world-class R&D hub with the goal of doubling the region’s Life Science ecosystem to $100 billion in 10 years. A medical devices park is currently under development as part of the initiative. BioAsia, Asia’s largest Biotech and Life-sciences forum, is held in Telangana.

AI, Big Data & Analytics

In June 2020 Telangana became the first state in India to launch a policy framework for developing Hyderabad and the surrounding region into a global AI innovation hub, declaring 2020 the “Year of AI.” Telangana Academy for Skill and Knowledge (TASK), Telangana State Council of Higher Education (TSCHE), Microsoft, and Nasscom FutureSkills have partnered to implement the March to Million initiative aimed at training 1M youth across India, including at least 30,000 youth in Telangana in the skills necessary to work in the growing AI sub-sector. Corporate Risk AI platform SignalX.ai has raised a total of $1.6 million in funding.

Reasons to move your startup to Telangana

Recruitment Assistance

To promote the growth of local idea-stage companies, the Telangana government offers recruitment assistance of INR. 10,000 per employee for their first year of operation.

Performance Grant

Telangana-based startups that record a year-on-year growth rate of 15% as per their audited accounts during their first three years since incorporation are eligible for a grant of 5% on turnover, subject to a limit of $13600.

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