Hyderabad startup funding hits $571 million, records 160% growth: Sridhar Babu

Hyderabad: Startups in Hyderabad raised a total of $571 million in 2024, a significant 160 per cent increase from the previous year, said D Sridhar Babu, Minister for Information Technology.

He was speaking at the closing ceremony of The August Fest 2025. The festival was a comeback after a seven-year hiatus, bringing together 7,600 innovators, entrepreneurs and investors for a vibrant celebration of creativity and ambition at HITEX.

‘Innovation not limited to Silicon Valley’

Minister Sridhar Babu said that innovation can emerge from anywhere and is not limited to tech hubs like Silicon Valley. “Hyderabad is now a blazing beacon on the world’s innovation radar,” he stated, reinforcing the city’s position as a global leader.

Startup funding soars by 160%

The Minister claimed impressive statistics that highlighted the city’s rapid development:

2024 Funding: Startups in Hyderabad raised a total of $571 million in 2024, a significant 160 per cent increase from the previous year. This funding was distributed across 81 rounds.

Sector-specific growth: The health tech sector led the way with a staggering 2,139 per cent surge in funding, reaching $300 million. FinTech also experienced a robust period, with funding nearly doubling to $105 million.

Funding Stages: The ecosystem’s maturity was evident with late-stage funding surging 701 per cent to $297 million, and early-stage funding rising 73 per cent to $233 million.

Women-led ventures and strategic development

Hyderabad now ranks 6th in India for supporting women-led ventures, with 531 such startups having successfully raised a combined total of $417 million. The State’s support, channelled through STPI Hyderabad, has assisted over 1,400 startups, with 44 per cent being women-led.

Minister Sridhar Babu outlined initiatives, including the development of a 200-acre AI City and the expansion of Genome Valley into Asia’s leading biotech cluster. The presence of global giants like FedEx, the London Stock Exchange and Uber also signified the State’s appeal for international corporations.

Mythrivanam to be declared a heritage building

In a nod to the city’s technological roots, the Minister acknowledged JA Chowdary's proposal to declare Mythrivanam in Ameerpet as a heritage building.

This location is credited with being the birthplace of Hyderabad's modern IT ecosystem, with the establishment of the first STPI Hyderabad in 1992. This proposal will be moved forward, recognising the site’s historic role in shaping the city’s technology growth.