Hyderabad Startup Ecosystem Shifts Focus to Growth Capital, Market Access

Hyderabad’s startup ecosystem has entered a new phase of growth, with access to growth capital and market expansion emerging as the next priorities for startups looking to scale, according to the Hyderabad Startup Readiness Index 2026 released by Endiya Partners.

     
                         

Based on responses from 216 founders, investors, corporates and ecosystem stakeholders, the Index recorded an overall ecosystem confidence score of 6.5 out of 10.

According to the report, Hyderabad’s greatest competitive advantage is still its infrastructure and connectivity (43 percent), followed by talent availability (38 percent) and cost effectiveness (36 percent). However, when the ecosystem switches its focus from startup formation to scaling firms, respondents selected market access (29 percent) and financing access (33 percent) as the areas that need the most attention.

The findings build on the Hyderabad Innovation Report 2026, which notes that the city is home to more than 10,000 startups, has attracted over USD 3 billion in venture funding across more than 384 deals since 2014, hosts over 355 Global Capability Centers (GCCs), which is nearly 20 percent of India’s GCC base and has emerged as the country’s second-largest technology talent hub.

                                   

The Index also highlighted differing perspectives across stakeholder groups:

} Founders pointed to funding challenges across different stages of the startup journey.

} Investors identified capital availability across multiple funding stages as a key constraint.

} Ecosystem enablers were the most optimistic, citing Hyderabad’s collaborative ecosystem and institutional support as enduring strengths.

} Shared consensus: Despite their differing perspectives, stakeholders agreed that improving access to capital, expanding market opportunities and enabling startups to scale will be critical to Hyderabad’s next phase of growth.

Commenting on the findings, Sateesh Andra, Managing Partner, Endiya Partners, said, “The Hyderabad Innovation Report captures how far the city has come over the last decade. The Startup Readiness Index looks ahead to where it needs to go next. Hyderabad has built strong foundations through talent, infrastructure and institutional support. The next phase will depend on enabling more companies to scale through deeper pools of growth capital, stronger market access and continued collaboration across founders, investors, corporates and policymakers. That’s how Hyderabad will create the next generation of globally relevant companies.”

Chaitanya Peddi, Co-Founder, Darwinbox, said, “Hyderabad’s greatest strength is that it allows founders to think long term. The city combines exceptional engineering talent, deep enterprise know-how and the operating discipline needed to build enduring companies. Darwinbox is a product of that ecosystem. What was once primarily a talent hub is now producing globally competitive technology companies and the next decade will firmly establish Hyderabad as one of the world’s leading innovation ecosystems.”