Over 545 venture capitalists and angel networks have invested in more than 900 startups in the city, providing the financial backing needed for these businesses to scale.
Hyderabad has emerged as a rich startup ecosystem, home to over 10,000 startups as of 2024, and this number continues to grow. The city has become an attractive hub for new businesses due to its modern infrastructure, cost-effective amenities, and supportive government policies.
Hyderabad is also known for its excellent educational institutions, providing a steady supply of skilled talent. This makes the city a preferred destination for entrepreneurs looking to start, build, and scale a business.
Some of the most startup-dense industries in Hyderabad include:
Healthtech
E-commerce
Entertainment
Edtech
Media
The contribution of VCs, Angels & Incubators
Venture Capitalist Firms
Over 545 venture capitalists and angel networks have invested in more than 900 startups in the city, providing the financial backing needed for these businesses to scale. Some of the prominent startups that have benefited from venture capital in Hyderabad include Natco Pharma, Pure EV, and Darwinbox, which have grown significantly with this support.
These VCs help startups by providing the necessary funds at different stages of growth, especially when traditional loans are hard to secure. Beyond financial support, VCs often offer guidance, mentorship, and access to networks that help startups scale faster. This backing allows entrepreneurs to focus on innovation and product development without being weighed down by financial constraints. In return, VCs gain equity in the company, sharing the risk but also the potential rewards of the startup's success.
Angel Investor Funding
Angel funding is another important contributor to the success of many startups in Hyderabad. Over 225 startups in the city have received support from more than 450 angel investors, providing them with early-stage capital to grow and expand. Some of the top startups in Hyderabad that have benefited from angel funding include Skippi Ice Pops, Perspect AI, Paymatrix, and Docturnal. These companies have used the backing from angel investors to develop their products and scale their businesses.
Angel investors help startups by providing crucial funding at the early stages, often when the business is just starting and needs initial support to get off the ground. Along with financial aid, angels often bring their experience, advice, and industry connections, helping startups navigate challenges and grow faster. Unlike venture capitalists, who usually invest later on, angels typically focus on startups with high potential but limited resources.
The startup incubators in Hyderabad have played a significant role in shaping the startup ecosystem by supporting over 1,000 startups in the city. These organizations provide startups with more than just funding—they offer resources like office space, mentorship, and business guidance. Some well-known startups that have been incubated in Hyderabad include Krishitantra, Xmachines, and Enmovil. These companies have benefited from incubators by gaining access to critical resources and expert advice that helped them develop their products, grow their teams, and find their market fit.
Incubators help startups by providing a conducive environment where early-stage companies can develop and refine their ideas. They offer guidance on business strategy, networking opportunities, and connections to investors. This support helps startups overcome early challenges and build a solid foundation for growth.
The Top startups of Hyderabad
Hyderabad's startup ecosystem is witnessing a surge in unicorns and soonicorns, rapidly transforming the city into a significant player on the global stage. In the following sections, we will explore some of the top startups in Hyderabad, showcasing their impact across various industries:
Darwinbox:
Every new business today seeks a reliable SaaS provider, and in this competitive space, Darwinbox has risen as one of the most successful startups in Hyderabad. As one of the city’s two unicorns, Darwinbox serves as a major inspiration for other emerging companies.
Darwinbox has established itself as a leader in cloud-based HRMS software. What sets them apart is their dedicated focus on HR solutions. They use AI and ML to support employees throughout their entire lifecycle, enhancing both ease of use and efficiency. This innovative "HR tech" engages with employees from the start to the end of their careers, making HR processes more seamless and effective.
Zenoti:
Zenoti is a unicorn startup that provides cloud-based software solutions for the spa, salon, and med spa industry. Operating in over 50 countries, including India, Zenoti has become a trusted name internationally.
Their software offers a complete solution for business operations, allowing customers to book appointments and make payments, while owners can manage inventory, employees, CRM, and POS systems. Additionally, Zenoti includes a built-in marketing program, easing the burden of marketing so clients can focus on delivering high-quality services.
If you're curious about the unicorns and ponies of Indian startups, the YNOS startup product offers a comprehensive database. You can find detailed information on startups' industries, social media, funding rounds, founders, and more, with filters for location, valuation, and technology.
Psynapce:
Psynapce India Private Limited is a t technology services and solutions company based in Hyderabad, specializing in the healthcare sector. They are into improving healthcare experiences by integrating advanced technologies like Big Data Analytics, Machine Learning, Internet of Things (IoT), Smart Sensors, Artificial Intelligence (AI), and Augmented Reality/Virtual Reality (AR/VR).
Their focus is on using these technologies to build new and better solutions that enhance patient care, streamline healthcare processes, and drive efficiencies within the industry. Their work not only advances technological capabilities in healthcare but also contributes to more effective and personalized patient care.
Paymatrix:
Paymatrix is an fintech startup based in Hyderabad that offers a comprehensive platform connecting tenants and landlords across India. This analytics-driven solution simplifies and automates the rent collection process, making it more efficient for both parties. Paymatrix provides a range of services including various payment options, automated rental agreements, and thorough tenant screening.
Their platform streamlines the rental process by integrating technology to handle routine tasks, which helps reduce administrative burdens for landlords and enhances convenience for tenants. With the help of advanced data analytics, Paymatrix ensures secure and timely transactions, while also offering features that improve transparency and reliability in rental agreements. This approach not only modernizes the property rental experience but also contributes to a smoother and more organized property management system.
Pure EV:
PURE EV is a testament to India’s rising interest and investment in the electric vehicle sector, particularly in the two-wheeler market. They specialize in developing electric scooters and bikes designed to be user-friendly and accessible for all legal age groups and genders, to enhance urban mobility. The company’s vehicles feature a multi-speed smart design, providing greater control, and making them ideal for last-mile logistics, all while being eco-friendly.
In February 2024, PURE EV secured venture capital funding, highlighting investor confidence in its innovative approach. If you're looking to explore the top venture capitalists in Hyderabad, the YNOS VC product offers an exhaustive and user-friendly database. It allows you to filter VCs by industry focus, startup associations, location, and more, even providing contact details for potential collaboration.
MedPlus:
Founded in 2006, Medplus Health Services Ltd. is another health tech startup with its focus on the healthcare and pharmacy landscape in India. Established by Atul Kumar Agarwal, Bhaskar Reddy Cherukupalli, Hemanth Kundavaram, and a team of other co-founders, Medplus has grown to become one of the largest pharmacy chains in the country.
The company focuses on providing customers with a wide range of pharmaceutical and wellness products, including prescription medications, over-the-counter drugs, personal care items, and diagnostic services.
Medplus differentiates itself by offering a seamless shopping experience through its extensive network of retail outlets, its online platform, and its application, ensuring convenience and accessibility. Their differentiators include superior quality, affordability, and customer satisfaction. Medplus continues to expand its footprint, aiming to bridge gaps in healthcare delivery across urban and rural areas of India.
Neeman’s:
Neeman’s has become a big name in the Indian footwear market with its innovative use of natural materials to create eco-friendly shoes. Known for their lightweight, flexible, and breathable design, Neeman’s shoes offer unique benefits, such as moisture-wicking and odor resistance, keeping feet cool during the summer and warm in the winter.
Another standout feature of their products is that they are machine washable, providing hassle-free maintenance and durability. Neeman’s is making a strong impression across all age groups through its strategic marketing efforts across various platforms, including digital, social media, and retail spaces.
With its eye on sustainability and comfort, the brand is carving out a niche for itself in the footwear industry, appealing to environmentally conscious consumers looking for stylish yet functional shoes.
TurboHire:
TurboHire is a pony startup that offers an AI-powered recruitment automation platform designed to transform the hiring process for candidates, recruiters, interviewers, and decision-makers. With the integration of artificial intelligence, TurboHire significantly reduces both the cost-to-hire and time-to-hire, making recruitment more efficient and effective.
The platform features automated scheduling, AI-driven screening, and premium sourcing capabilities, allowing companies to quickly identify and engage top talent. TurboHire also supports customization through WhatsApp, integrates seamlessly with HR management systems (HRMS), and provides streamlined interviewing processes, all of which contribute to a smoother, more organized hiring experience.
TurboHire is rapidly gaining traction as a preferred solution for businesses seeking to modernize their talent acquisition processes and improve overall recruitment outcomes.
Skippi Ice Pops:
Skippi is a food and beverages manufacturing business with their focus on popsicles. Their nostalgic product design, accessible price point, and attractive packaging have made them a $100 million company!
Skippi became a national sensation when it appeared on the first season of Shark Tank India and took home an all-shark deal. This exposure catapulted Skippi into the spotlight, making it one of the most talked-about startups in the country.
The judges on the show - Anupam Mittal, Namita Thapar, Piyush Bansal, Ashneer Grover, and Vineeta Singh - have undoubtedly become the most popular angel investors in India.
If you’re interested in learning more about India’s angel investors, the YNOS Angel Product offers a comprehensive database. You can filter investors by education, industry, location, and more, with access to their contact details and investment history, making it easier to connect and collaborate.
Zippr:
Zippr Private Limited is a leading location intelligence company that works on resolving the challenges associated with traditional address systems. Their innovative solution transforms complex, hard-to-explain addresses into simple, user-friendly codes, making navigation and location sharing significantly easier. This system not only improves efficiency in sectors like logistics, emergency services, and e-commerce but also enhances user experience by minimizing the time and effort spent on finding locations.
Zippr's technology has the potential to completely change and improve the way addresses are managed and communicated, offering a new standard in the field of location intelligence and making it a valuable tool for smart city initiatives and other technology-driven urban planning efforts.
Frequently Asked Questions
Q. How many startups are there in Hyderabad?
A: As of 2024, there are over 10,428 startups in Hyderabad.
Q. How to Find Investors for Your Startup in Hyderabad?
A: To find investors for your startup in Hyderabad, you would require researching and connecting with venture capitalists (VCs) and angel investors who align with your industry and growth stage. Start by identifying potential investors who have a history of funding startups in your sector. Networking events, startup incubators, and pitch competitions in Hyderabad can also be valuable places to meet investors.
For a more targeted approach, the YNOS VC and Angels products offer comprehensive databases of investors across India. These platforms allow you to filter investors based on their industry preferences, location, education, and investment history. You can explore detailed profiles, including their past investments and contact information, making it easier to identify and reach out to the right investors for your startup. Using these tools, you can streamline your search and focus on investors who are most likely to be interested in your business.
Q. What are the Top VC Firms Fueling Startups in Hyderabad?
A. Some of the top VC firms in Hyderabad are Endiya Partners, Natco Pharma, Trivenix
Final Words
Hyderabad has almost everything that a startup needs to be successful. The city provides good infrastructure, skilled manpower, cheap resources, and plenty of foreign investment. However, the city's growth is sometimes held back by a traditional mindset among investors and aspiring entrepreneurs, who often favor established industries like real estate, pharma, and IT. Many prefer to invest in or build businesses around these proven sectors rather than exploring new, innovative ideas. Despite this, a noticeable shift is occurring, with Hyderabad increasingly creating fresh and creative concepts. As this trend continues, the city could experience exponential growth and establish itself as a leading startup hub in the coming decade.
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