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Can Hyderabad Overstep Bangalore as the Top Destination for Startups? Evaluating the key factors that are pushing Hyderabad towards becoming a hub for start-ups in India

By Aastha Singal

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Over the years, Hyderabad has acquired a serious reputation as a growing startup hub. There has been an explosion in the number of interesting ventures the ecosystem has produced. With government, incubators, accelerators and investors playing a more active role in nurturing early stage start-ups, the day is not far when the city would become the top destination for all start-ups, tech or not.

Entrepreneur India evaluates the key factors that are pushing Hyderabad towards becoming a hub for start-ups in India:

Bridging the Disconnect

According to the Telangana State Innovation Cell (TSIC), there are over 4000 startups operating in Hyderabad today and Priyanka Ganeriwal Arora who chairs FICCI, Hyderabad believes that government has been very supportive in bringing the change by reaching out to people. "The government is more vocal about what they are doing," she says.

There were many schemes to push the start-ups earlier too, but it would not get communicated to the correct people. Today, the government has taken all sorts of media from print to electric and social media to communicate their plan to the right people. "People looking for such opportunities are aware of what is available for them. The disconnect that was there earlier is being taken into account today," Arora stated.

Vijay Amritraj, Partner & CEO of Voilà F9 Gourmet believes that a strong state government's policy framework would be instrumental in tipping Bangalore as the startup hub. "The unspoken battle between the two cities is evident in the way their respective State IT ministers aggressively push the case for their respective cities."

Infrastructural Benefits

Data suggests that Bengaluru is currently leading the start-up race by a huge margin but Hyderabad also has the capability to pit itself as a strong challenger in coming years, Amritraj stresses, adding, "While Hyderabad scores on the physical infrastructure and Bangalore on the overall startup ecosystem, there is a third paradigm, which is the ease of doing business where Hyderabad and Telangana State is consistently topping the charts."

Hyderabad's amiable climate, cosmopolitan culture, famous cuisine, evolving nightlife and new recreation options are among the motivating indicators of the region's startup growth. Sai Krishna Popuri , Founder & CEO , HealthSutra also acknowledges, "With top class tech talent available, eco-system support, lower rentals and with the cost of other services lower than other cities," Hyderabad offers an appropriate infrastructure for the young lot to start up.

Opportunity for Incubation

Hyderabad has grown to be known as a city that houses T-Hub which is now the largest startup incubator in the country. T-Hub is a unique PPP model, where the Govt. has contributed to the capital and has allowed an independent management team to run the day-to-day affair, governed by a board of very high pedigree.

"T-Hub is today the crown jewel of Hyderabad when it comes to innovation, startups and entrepreneurship. It is much more than a just flamboyant building; it is a thriving ecosystem of startups, mentors, co-founders, support services, and an unparalleled number of events that dot the campus," states Amritraj.

Not just T-Hub, Hyderabad has developed an overall system for incubation that further pushes enterprises to scale. Arora believes that incubation cells help new entrepreneurs with a one-point spot to go and understand things much better. They help start-ups recognize, "What are the government policies like, who do they need to connect to, what are their funding options, what are the legal options, what is the taxation?"

Aastha Singal

Entrepreneur Staff

Former Features Writer

A business journalist looking to find happiness in the world of startups, investments, MSMEs and more. Officially started her career as a news reporter for News World India, Aastha had short stints with NDTV and NewsX. A true optimist seeking to make a difference, she is a comic junkie who'd rather watch a typical Bollywood masala than a Hollywood blockbuster. 

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