Hyderabad has witnessed a remarkable surge in startup funding, reaching $571 million in 2024, marking a 160% increase from the previous year. This announcement was made by D Sridhar Babu, the Minister for Information Technology, during the closing ceremony of The August Fest 2025. The festival, returning after a seven-year break, attracted 7,600 innovators, entrepreneurs, and investors to HITEX, celebrating creativity and ambition.
The Minister emphasized that innovation is not confined to traditional tech hubs like Silicon Valley, positioning Hyderabad as a prominent player on the global innovation stage. The city’s startups secured funding across 81 rounds, with the health tech sector leading the charge with a 2,139% increase, amounting to $300 million. The FinTech sector also saw significant growth, nearly doubling its funding to $105 million.
The city’s startup ecosystem showed maturity, with late-stage funding skyrocketing by 701% to $297 million, and early-stage funding increasing by 73% to $233 million. Hyderabad now ranks sixth in India for supporting women-led ventures, with 531 such startups raising a total of $417 million. State support, facilitated through STPI Hyderabad, has benefited over 1,400 startups, with 44% being women-led.
Future initiatives include the development of a 200-acre AI City and the expansion of Genome Valley into a leading biotech cluster in Asia. The presence of global corporations like FedEx, the London Stock Exchange, and Uber underscores the state’s international appeal.
Additionally, Mythrivanam in Ameerpet is set to be declared a heritage building, acknowledging its role as the birthplace of Hyderabad’s modern IT ecosystem with the establishment of the first STPI Hyderabad in 1992. This recognition highlights the site’s historical significance in the city’s technological advancement.
