Rise of the NEXT RUNG
Outlook Business|November 2023
Cities like Hyderabad, Pune, Ahmedabad, Kolkata and Noida+Greater Noida are attracting entrepreneurs and investors looking for alternatives to Top 5
- MAHANKALI SRINIVAS RAO
Rise of the NEXT RUNG

Hyderabad has emerged as a powerhouse in the Indian start-up landscape because of factors like government support, a focus on emerging technologies, foreign investment, topnotch infrastructure, sector diversification and innovation-driven organisations

MAHANKALI SRINIVAS RAO CEO, T-Hub, Hyderabad

Beyond the top five cities in Outlook Start-Up Outperformers 2023, the lure of the emerging cities is clear. Here, the competitive landscape is less saturated, allowing for easier market entry. Moreover, government initiatives and infrastructure development in emerging cities are attracting businesses.

"A thriving start-up ecosystem should focus on nurturing start-ups that can make a lasting impact on the economy, create jobs and drive innovation," says Mahankali Srinivas Rao, CEO of T-Hub, an innovation hub in Hyderabad backed by the Telangana government. "Hyderabad has emerged as a powerhouse in the Indian start-up landscape because of factors like government support, a focus on emerging technologies, foreign investment, top-notch infrastructure, sector diversification and innovation-driven organisations," he adds.

It is because of these reasons that a growing number of venture capital (VC) funds are based in the city, believes Srikanth Tanikella, managing partner of Pavestone Capital in Hyderabad. There are 10-odd such funds currently in the city, he points out. Hyderabad is fifth in funding and investment and human capital and seventh in knowledge edge. Also, it has the fifth highest number of growth stage start-ups and mentor institutions, right after Gurgaon.

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